Can't Extend Loan Moratorium Period Beyond August 31: Supreme Court

The Supreme Court on Tuesday refused to interfere with the Centre's and Reserve Bank of India (RBI’s) decision to not extend the loan moratorium beyond August 31 last year, saying it is a policy decision.

The Supreme Court bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah were hearing a batch of petitions on whether to waive interest payments on coronavirus support loans in a move that could give relief to millions of people.

The apex court directed that no compound or penal interest shall be charged from borrowers for the six-month loan moratorium period, which was announced last year amid the COVID-19 pandemic, and the amount already charged shall be refunded, credited or adjusted.

The top court said it cannot interfere with the government’s decision to fix priorities for relief during the pandemic which has affected all across the country.

The bench said this in its verdict on a batch of pleas filed by various trade associations, including from real estate and power sectors, seeking extension of the loan moratorium period and other reliefs in view of the pandemic.

With PTI inputs