COVID-19: Plea filed in SC seeking loan moratorium on repayment of bank dues

A plea has been filed before the apex court seeking directions for relief to borrowers in the form of a fresh loan moratorium of six months in wake of the second wave of COVID19 pandemic. The plea also blamed the Centre and the RBI for not doing enough to mitigate the hardships faced by people during the crisis and said no financial package has been announced to give aid to the affected.

New Delhi: A plea has been filed in the Supreme Court seeking a moratorium of six months on the repayment of bank dues owing to the second wave of the COVID-19.

The plea has been filed seeking the directions to take effective and remedial measures to redress and overcome the financial stress and hardship faced by the borrowers of the country during the pandemic.

According to reports, the plea filed by Advocate Vishal Tiwari has urged the Court to direct that no Bank or Financial Institution will take action for auction in respect of any property of any citizen or person or party or any Body corporate for a period of six months.

The plea also blamed the Centre and the RBI for not doing enough to mitigate the hardships faced by people during the crisis and said no financial package has been announced to give aid to the affected.

The RBI is yet to take a call on a moratorium, but last week had said banks can restructure loans for up to two years. The plea also sought an extension of the time period for the restructuring scheme, said sources.