SC seeks Centre, RBI response on CREDAI's plea over loan moratorium

The Supreme Court today issued notices to the Centre and the RBI on a plea of CREDAI on whether real estate firms are eligible for loan moratorium policy of the central bank.

New Delhi:The Supreme Court on Friday issued a notice to the Centre and Reserve Bank of India (RBI) on a petition filed by CREDAI over the issue whether all NBFCs are eligible for loan moratorium or whether the banks have the discretion to give benefit.

A bench comprising Justices L Nageswara Rao, SK Kaul and BR Gavai sought the response of the Reserve Bank of India and others on the plea of Confederation of Real Estate Developers' Associations of India (CREDAI) alleging that there was no clarity as to whether real estate developers are entitled to loan moratorium policy or not.

Senior advocate Harish Salve, appearing for the association, said that the main issue was as to what happened with the RBI circular and its applicability on real estate developers.

It was told that the circular was binding on the banks but some of the bank's are not expending the loan moratorium benefits to real estate developers, he said.

He said the RBI should clarify this.

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Salve said that people in the real estate agency have large loans, and when they ask for rescheduling, the banks do not do that, saying that they will give to small and not big enterprises.

Solicitor General Tushar Mehta, appearing for the Centre and others, said he would seek instructions from the ministry concerned and other authorities and get back to the court.

The court then issued the notice and fixed the plea for hearing after two weeks.

(With inputs from PTI)