Government to clear its position on loan moratorium in a week: Supreme Court

The Supreme Court again heard today in the Lone Moratorium case. The court gave the government one more week in this case and the Supreme Court said that no guidelines have been issued by the Reserve Bank for the relief given on the interest, so the court has given a To clarify the situation within a week, a new affidavit has been filed.

The court said that the government should give a new affidavit by October 12 detailing how the interest waiver will be applicable. During the hearing, the association of real estate companies has said that in the affidavit given by the government, many figures and facts are baseless. Credai has asked for a few more days for an answer on the affidavit of the central government.

Credai’s lawyer said that the central government has not given any relief to the real estate sector. He said that the government has not given any loan restructuring facility to this sector. Companies have to pay full interest. CREDAI objected to the government’s figure of 6 lakh crore rupees. In response to this, Solicitor General Tushar Mehta presented on behalf of the government said that according to the available resources, relief has been given to different sectors.

It is worth noting that to provide financial relief to the people in lockdown, the Reserve Bank had given the facility of moratorium to avoid payment of EMI of the loan. This facility started from March till 31 August i.e. for a total of 6 months. RBI had said that if the loan installment does not repay for 6 months, then it will not be considered a default. However, this condition has also been kept that after the moratorium, full interest will have to be paid on the outstanding payment. This means that after the end of the moratorium facility, additional interest will be charged on the loan interest of the last 6 months.