The Supreme Court said the centre’s affidavit on waiving “interest on interest” on loans was unsatisfactory.
New Delhi:
The government informed the Supreme Court that “it is not possible to give more relief to various sectors” amid the novel coronavirus pandemic, stressing that “the courts should not interfere in fiscal policy”.
In its latest affidavit, the government said, “Policy is in the hands of government and the court should not be focusing on sector specific financial relief. Any other relief, besides waiving compound interest on loans up to 2 crore rupees, is detrimental to the national economy and the banking sector. “
Last week the government told the Supreme Court it was prepared to waive interest on loan repayments of up to Rs 2 crore, frozen by the Reserve Bank of India (RBI) in a moratorium of six months granted due to the coronavirus pandemic. .
On Monday, however, the Supreme Court said the centre’s affidavit on waiving “interest on interest” on loans was unsatisfactory and called for a recast within a week.
While hearing petitions for a waiver of interest on deferred IMEs – or interest on interest – to help small borrowers during the coronavirus pandemic, the Supreme Court said the centre’s affidavit “does not resolve several issues raised by the petitioners “. The government has been urged to reflect the concerns of real estate and power producers in new affidavits.
