The Supreme Court is due to hear the loan moratorium case on November 2.
New Delhi:
The central government has filed its detailed affidavit with the Supreme Court in connection with the loan moratorium case in which it said the interest relief scheme can be used by borrowers in specified loan accounts for a period from March 1 to August 31, 2020.
This decision was taken by the Ministry of Finance and approved by the Union Cabinet at its meeting on October 21.
The Center said the interest relief regime is applicable (and that interest can benefit) to those who have not taken advantage of the moratorium regime and have continued to repay their existing loans.
The higher court is expected to hear loan moratorium petitions seeking an interest waiver instruction on November 2.
Petitions from Gajendra Sharma and others, including the plea filed by Supreme Court attorney Vishal Tiwari, will be heard by the Supreme Court. The court will also consider the affidavit of the RBI, the Center and the other respondents filed in the case.
The affidavit filed by the Center, through the Ministry of Finance, relieves many of the borrowers.
The affidavit states that the difference between compound interest and simple interest will be deposited into the borrowers’ account by November 5. The benefit will apply to those who borrowed between March 1 and August 31, 2020.
Under the program, all credit institutions will credit the difference between compound interest and simple interest to the respective accounts of eligible borrowers for the period from March 1, 2020 to August 31, 2020, according to the Centre’s affidavit.
This amount will be credited by each of the lending institutions, regardless of whether these eligible borrowers have fully or partially benefited from the moratorium such as the postponement of payment of down payments, the affidavit indicates.
It is argued that the decision is taken after careful consideration, keeping in mind the overall economic scenario, the nature of borrowers, the impact on the economy and other factors such as a policy decision affecting the category of ‘borrowers referred to the granting of benefits, the affidavit stated.
(This story was not edited by GalacticGaming staff and is auto-generated from a syndicated feed.)
