Monday, June 5, 2023

Loan moratorium case: Banks have fallen inline and all decision to be implemented by Nov 15, says SG

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New Delhi (ILNS): As the hearing on the loan moratorium case began again at the Supreme Court, former Finance Minister P. Chidambaram, arguing for the petitioner said that after affidavits have already been filed, we want a compound interest waiver on loans under Rs 2 cr. He said that he would also want to be heard on the Kamath committee recommendations. Later, Solicitor General Tushar Mehta clarified that benefits of government concessions to borrowers up to Rs 2 crore will be implemented by the outer limit of November 15.

The bench of Justices Ashok Bhushan, R. Subhash Reddy & M. R. Shah said that it would hear the Solicitor General. “We think that we won’t be able to finish arguments today,” said the bench.

Senior Counsel Rajeev Dutta, for individual borrowers, said that eight categories have been listed by the Centre for relief to loans under Rs 2 cr. “The Centre now speaks on formalities of circulars by banks on compound interest waiver,” he said. “The petitioners seek to stop capitalizing on loans by banks.”

At that senior Advocate Harish Salve, arguing for the Banks’ Association, objected.

The bench interjected, saying:

“We have already passed orders on not declaring any NPAs. Now we are concerned about how waiver benefit will be given.”

The Banks’ Association stated that the banks have already fallen in line with the government affidavit.

Justice Bhushan said the benefits of government concessions to borrowers up to Rs 2 crore must be implemented as soon as possible.” That was when the SG replies that it will be done by the outer limit of November 15.

Harish Salve said that the banks have fallen inline and everything that the government has said will be implemented.

The bench asked the SG why it would take one month to implement such a small decision?

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The SG said: “We don’t stand to gain by delaying things unnecessarily. We seek time to compute interest liability to be paid by us.

The matter has been listed for November 2 for next hearing.


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