Loan moratorium: implement interest relief as soon as possible, SC told the Center

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The Supreme Court said on Wednesday that it was not fair of the Center to take a month to implement its decision to grant an interest waiver on interest on a loan up to Rs 2 crore in categories specified during the six-month moratorium. He pointed out that ordinary man’s Diwali is now in the hands of the government.

A bench chaired by Judge Ashok Bhushan asked the Union government to ensure the publication of notifications in this case by November 2.

The bench, also comprising Justices MR Shah and R Subhash Reddy, told Solicitor General Tushar Mehta, representing the Center, that he did not need a month to implement his decision to waive interest on the loans up to Rs 2 crore.

Also Read: SC Seeks Center, RBI Response On Loan Moratorium By Oct 12

“It is not fair on the part of the government. When you have decided, then why is it taking time,” asked the Mehta bench.

The bench said the Center should issue the necessary orders based on its decision so that the common man can receive the benefits.

The bench said the government should see the plight of the common man because they know the Center made a decision in their favor but they want a concrete result.

Mehta mentioned that the government would gain nothing by delaying its decision unnecessarily, but there are certain formalities that need to be completed. He added that the banks will waive the interest on the interest and then get a refund from the government.

“To implement this, we have to make sure that the banks give us an appropriate format,” he submitted.

The court said it wanted the Centre’s decision to be translated into action.

The government had previously informed the court of its decision to waive compound interest on MSMEs and personal loans up to two crore rupees during the moratorium.

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