coronavirus update indiaas on : 19 October 2020 05:20 GMT+5:30
Supreme Court Lambaste Centre: "..Because You Lockdown Entire Country"
The Supreme Court has asked the government to make its stand clear by September 1
Supreme Court Lambaste Centre: "...Because You Lockdown Entire Country"
New Delhi: On Wednesday the Top Court sought the government's stand on waiving interest on the loan repayments during the moratorium period.
The Supreme Court said that the central government cannot hide behind the Reserve Bank of India and should not look at the business interest alone, and directed the Centre to make its stand clear by September.
The Supreme Court was hearing petitions that wanted waiver of interest on loan repayment during the moratorium period, announce due to the coronavirus lockdown. The moratorium is due to end on August 31.
The bench headed by Justice Ashok Bhushan said, “This happened because you locked down the entire country. You have to tell us your stand on two things: disaster management act and if the interest on interest will be accounted for.
When the Supreme Court asked about the government's stand, Solicitor General Tushar Mehta said, “There cannot be a solution which is one-size-fits-all.”
Justice M.R. Shah said, “Mr. Mehta, this is not the time to think about a business only.”
The petitioner wanted the cancellation of some portion of RBI notification issued on March 27 canceled to the extent that it charges interest on the loan during the moratorium period. They said this interest creates hardship, hindrances, and objection in right to life guaranteed under the constitution .
The RBI had informed the court earlier that there cannot be an interest waiver during the moratorium on term loan repayment as such a move that will put the financial health and stability of the bank at risk.