Top court instructs centre to waive off interests on loans

While hearing petitions seeking interest waiver during the loan moratorium period, the Supreme Court ordered the centre to implement decisions to forego interests in wake of the COVID-19 pandemic.

New Delhi: The Supreme Court on Saturday instructed the government to implement decisions to forego interest on eight specific categories of loans up to two crore rupees in view of the COVID-19 pandemic. The top court was hearing a plea seeking a waiver of loan interest during the moratorium period.

The plea was filed by Gajendra Sharma in which he sought relief from interest during the loan moratorium period.

Sharma, in his plea, stated that he suffered job loss during COVID lockdown and has no means to continue work.

The bench comprising of Justice Ashok Bhushan, Justice R Subhash Reddy, and Justice MR Shah said, "The COVID-19 pandemic has not only caused a serious threat to the health of the people but has also cast its shadow on the economic growth of the country as well as other countries in the entire world."

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The apex court observed that due to the lockdown imposed by the Government of India in the exercise of powers under the Disaster Management Act, there can be no denying that most of the business including the private sector has been adversely affected.

For several months, a large number of industries were not allowed to function and exemptions were granted only to a few of the industries to run and carry on its activities, which were found essential and necessary in the fact situation."

Similar petitions from various are other sectors are yet to be heard by the Supreme Court.

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