Loan Moratorium Interest Waiver: Diwali is in your hands, implement waiver, SC to government

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The Supreme Court on Wednesday pushed the government to implement the ‘welcome’ decision taken to waive compound interest on MSMEs and personal loans up to Rs 2 crore during the moratorium period, taking into account the situation criticism of the common man.

“Their Diwali is in your hands,” remarked Judge MR Shah, sharing a bench with Judge Ashok Bhushan and R Subhash Reddy, while hearing a plea that raised the issue of forgiveness of interest on loans during the period. six-month moratorium.

Adjourning the case until Nov. 2, the court said it expects the ruling to come into effect by then.

“You have already made the decision to grant benefits to people who have taken out a loan of up to Rs 2 crore. What about the implementation? Judge Bhushan asked Solicitor General Tushar Mehta, who appeared for the Center.

Senior lawyer Rajeev Dutta, representing the petitioner, pointed out that an affidavit filed by the government had mentioned November 15 as the outer limit to allow relief.

Mehta said the government gave the assurance on affidavit and only the terms needed to be worked out, for which a deadline until Nov. 15 is requested.

“For these terms, you need a period of one month? Asked Judge Bhushan.

Senior lawyer Harish Salve, representing the Association of Indian Banks, said the issue is complex and therefore time consuming.

“People are worried about their accounts and the interest on the interest,” Judge Shah noted and asked Salve what was happening now.

Salve said implementation for borrowing up to Rs 2 crore in loans is underway. He added that the numbers are important but that it will be implemented.

Judge Bhushan said the court was only asking whether the benefit given to the people by the government had crept in. “Once the government has made a decision, there is no need to delay it any further,” Judge Bhushan observed, adding “that it is not in the interest of the people to continue delaying once. that you have decided ”.

“Please see the fate of an ordinary man,” added Judge Shah.

Mehta sought to explain the need for time and said the banks will forgo compound interest which will then be offset by the government and the calculation will have different terms.

“What we have said is that we welcome the government’s decision in the interests of the people. The only thing it should have been implemented at the earliest! added Judge Shah.

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