The Centre on Monday sought additional time before the Supreme Court to clarify its stand on the issue of interest being charged by banks on deferred installments during the moratorium period. The moratorium on loan repayments was allowed by the Centre due to the COVID-19 pandemic.
Following the request by the Union government, the Supreme Court granted time till October 5 to the Centre to clarify its stand.
Notably, the top court was hearing a bunch of petitions seeking a waiver of interest on deferred EMIs during the moratorium period. The court, during earlier this month, extended the relief to stressed borrowers clarifying that no account shall be declared NPA till further orders.
The relief came from the Supreme Court came after the Centre said an expert panel has been set up to look into the issue of interest being charged by banks on deferred installments during the moratorium period.
What did the govt say in Supreme Court?
Solicitor general Tushar Mehta, representing the Centre, said that some things are beyond his control and sought more time to submit the government’s plan in this regard.
He said that the decision on the matter was at an advanced stage and some more time is required to furnish the details before the court.
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The Union government has set up an expert panel, under former Comptroller and Auditor General (CAG) Rajiv Mehrishi, to look into the issue of interest being charged by banks on installments deferred during the moratorium period due to the COVID-19 pandemic.
Solicitor General Tushar Mehta had earlier submitted to the court that the government at the highest level is considering all issues raised in the batch of petitions and within two weeks, an appropriate decision will be taken with regard to the problems faced by different sectors during the pandemic.
He had said that everything has to be considered holistically and the government was considering all the sectors for which an expert panel has been constituted.
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