Situation Demands That Loan Moratorium Be Extended Till 31 March 2021": Plea In Supreme Court Seeks Extension

By EDITORIAL BOARD INSOL India Posted On : December 28, 2020

An amendment application praying for directions to extend the moratorium period till March 31, 2021 has been filed in the Supreme Court. The Supreme Court is hearing the issue of extension of loan moratorium and waiver of accruing interest. One of the Petitioner(s) Advocate Vishal Tiwari has sought modification of the original prayers in the plea which related to extension of moratorium period up to December 31 stating that the current situation demands and necessitates that the moratorium shall be extended and granted up to March 31, 2021.

Further, the plea has sought directions to ensure that lending Institutions Shall not use any kind of illegal, Violent, threatening and harassing methods against borrowers for the recovery loan Instalments; And further Direct that in case such Acts are committed by the lending Institutions than Strict Action shall be taken against them in Accordance with law. In this context, it is contended that 31st December 2020 is about to come and there is no change in pandemic situation. he plea further highlights that other sectors like tourism and transport Industry is also facing slump in their business as due to restrictions the people are avoiding travel and visiting places. Restructuring scheme introduced by the RBI is of no relief to the borrowers as the entire discretion has been given to the banks," it states. 

Solicitor General Tushar Mehta told top Court today that many relief packages and schemes had been worked out with technical experts and the intervention of the Court in fiscal policy issues was uncalled for. The bench disposed off the pleas wherein petitioners' were satisfied with the compound interest waiver.