The plea urged the apex court to direct that no bank or financial institution will take action for auction in respect of any property of any citizen or person or party or anybody corporate for a period of six months.
The recent resuscitation move by the Reserve Bank of India may not be enough to help small businesses stay afloat. A petition filed in the Supreme Court wants a fresh moratorium on interest on bank loans.
The petition has sought directions to the respondents to permit the lending institutions to grant interest-free moratorium period for term loan and defer the payment of loan instalments for a period of six months or till Situation from COVID 19 Normalizes.
The main issues that came up were that the limited relief in waiving compound interest till Rs 2 crore was not enough in addressing the pain of the small time entrepreneurs who have lost all in the pandemic.
New Delhi (ILNS): Solicitor General Tushar Mehta today told the Supreme Court that the government will ensure that those who paid up during the moratorium period are not short-changed. Will ensure those who paid during moratorium aren't short-changed.
The loan moratorium case will now be heard by the Supreme Court on Thursday. This was decided after the Central government informed the court that their lawyer, the Solicitor General, was busy with some other matter.