SC defers hearing on waiver of interest on interest charges to 13 October

In the Lone Moratorium case, the Supreme Court has postponed the next hearing till October 13. The Supreme Court said on Monday that the affidavit filed by the Center regarding the ‘Interest on Interest’ waiver is not satisfactory. Now the court has asked the Central Government and Reserve Bank of India to file a fresh affidavit. In the affidavit filed earlier, the central government had asked for waiving ‘interest on interest’ on loans up to Rs 2 crore. The burden will be borne by the Central Government itself, which is estimated to be Rs 5,000 to 7,000 crore.

A three-judge bench headed by Justice Ashok Bhushan said that in the affidavit of the Central Government, as per the report of the Kamath Committee on 7 September, there is nothing in relation to the special sector measures and the steps taken by the Center for the implementation of its policy decisions Neither has been given information about. The bench said in its order that the affidavit is not judicial with several issues raised in various petitions. The other two judges in the bench are Justice R Subhash Reddy and Justice MR Shah.

No relief to real estate sector

Kapil Sibal, who spoke on behalf of real estate body CREDAI, said, “Many of the facts and figures in the government’s affidavit are baseless”. He said that the government should be given some time to present its stand so that it can give detailed information about it. Aryama Sundaram said that the real estate sector has not been given any relief from the government. Loan restructuring has also not been provided to this sector. Full interest has to be paid from September 1, 2020.

Also read: How much benefit will be taken by home loan borrowers and credit card users due to no interest on interest? Learn details

The apex court was hearing petitions seeking interest waiver on payment of equal monthly installments between March and August 31, which was announced by the Reserve Bank of India (RBI) due to the lockdown declared by Kovid 19 and the epidemic. The court asked the central government and RBI to keep various schemes and policy guidelines on record so that the scheme could be implemented. Let me tell you that on Friday, the Central Government had filed an affidavit in the Supreme Court of the country that it would waive interest on interest incurred during the period of the moratorium for some loans including small business, education, housing and credit cards.


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