SC seeks RBI's response on loan relief sought by power producers' body

The Supreme Court bench comprising of Justices Ashok Bhushan, R Subhash Reddy, and MR Shah today directed the RBI to respond on loan relief sought by power producers' body.

New Delhi:The Supreme Court on Thursday directed the Reserve Bank of India (RBI) to respond on loan relief sought by the Power Producers' Body, and asked the body to submit its suggestions to the RBI and adjourned the matter for hearing next week.

The bench comprising of Justices Ashok Bhushan, R Subhash Reddy, and MR Shah was hearing a batch of petitions which sought waiver of interest on interest on the loans during the loan moratorium period. The apex court directed to dispose of the pleas today which were satisfied by the government's resolution mechanism.

The Union had submitted affidavits in the court appraising it about its decision to bear the burden of interests for small and MSME loans upto Rs two crore. Solicitor General Tushar Mehta, briefed the court today about what has already been done on the issue.

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Senior Advocate Abhishek Manu Singhvi appearing for the association of generating companies contended before the top court today that though the RBI's circulars were intended to be inclusionary, there were certain exclusions which were hurting people like them.

Singhvi argued that even in pre covid times, the Parliamentary panel had on March 7 backed loan structuring for them. A large number of our lenders not allowed to restructure loans, FPIs, LIC are not allowed to fund us which should be allowed, said Singhvi.

They urged the court to issue notice to the RBI but the court refused and asked them to submit a list of requests to the RBI instead.

The matter will again be heard next week when RBI will also make submissions.

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