Relief To Borrowers: Supreme Court Extends Loan Repayment Moratorium Till Sep 29
Offering relief to the borrowers, the top court of India has announced the extension for loan repayment moratorium till September 28. It also extended the interim order by asking banks to not declare NPA (Non Performing Asset) accounts that fail to make repayments.
Earlier, the deadline for loan repayment was 31st August 2020 which was set in the backdrop of ongoing Covid-19 crisis that has drastically affected the finances of people in India. The borrowers were permitted to defer loan repayments for six months. Now, the Supreme Court has again extended the last date for loan repayment moratorium
In addition to this, the top court has also asked the government to consider the plea to not charge the interest on loans during the moratorium. For this, they have also been granted two weeks to the Centre and RBI for filing an affidavit and submit it before taking the final decision.
The bench is also hearing a petition filed by Gajendra Sharma, in which he has sought a direction to declare the portion of RBI’s March 27 notification “as ultra vires to the extent it charges interest on the loan amount during the moratorium period, which create hardship to the petitioner being borrower and creates hindrance and obstruction in ‘right to life’ guaranteed by Article 21 of the Constitution of India.”
A bench led by Justices Ashok Bhushan, M R Shah and Sanjay Kishan Kaul had said that “these are challenging times and it is a serious issue as on one hand moratorium is granted and on other hand interest is charged on loans.”