Moratorium: Government says in the Supreme Court – interest of the outstanding installments will be there but will reduce the pressure of payment

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Moratorium: Government says in the Supreme Court – interest of the outstanding installments will be there but will reduce the pressure of payment.The hearing in the Supreme Court on the applications for extension of loan moratorium granted by the RBI in the lockdown and relaxation of interest is going on.

Moratorium: Government says in the Supreme Court – interest of the outstanding installments will be there but will reduce the pressure of payment

Solicitor General Tushar Mehta is pleading on behalf of the government. He said, “Can not discount interest, but will reduce the pressure of payment. Banking sector is the backbone of the economy. We cannot take any decision weakening the economy.

Now that the moratorium has completed 6 months, customers are saying that it should be increased further. Even more important is that the interest of moratorium period should also be waived. Because, charging interest on interest would be a double whammy. The reason for this is that RBI had only allowed to postpone EMI, but the interest on the outstanding installments will have to be repaid.

Argument for loan-taking customers

1. On behalf of a group of customers and the Maharashtra chapter of the construction industry. Senior lawyer Kapil Sibal said in Tuesday’s hearing. If the moratorium does not increase, many people will default in the loan payment.  Experts in this case The committee should prepare a sector wise plan. ”

2. Advocate A Sundaram, on behalf of the real estate developers’ organization CREDAI, argued. It is wrong to charge interest from customers in the Moratorium. This could lead to non-performing assets (NPAs) going forward.”

3. Advocate Ranjit Kumar, on behalf of the Shopping Centers Association of India, said, “People are having problems because of Corona. Measures should be taken to give relief to them. RBI cannot just speak like a spokesperson for banks. Our The situation is really bad. Theaters, bars and food courts are closed. How will we earn and give salary to the employees? Appeals to the court that sector wise relief should be considered. ”

Earlier on Tuesday, the government said that the moratorium period could be extended for up to 2 years, given the situation in Corona. The government’s reply came because on August 26, the Supreme Court had reprimanded the government and said that the situation should be cleared in this case in 7 days. The court had commented that the government is taking cover of the RBI decision, while it has the authority to take decisions on its own.