The Supreme Court was informed by the Central government on Tuesday that, due to the ongoing COVID-19 pandemic, the moratorium scheme, which concluded on August 31, could potentially be extended by an additional two years.
A bench presided over by Justice Ashok Bhushan was in the process of considering petitions filed by Gajender Sharma and Advocate Vishal Tiwari, both seeking an extension of the moratorium period.
Solicitor General Tushar Mehta, representing the Centre and RBI, conveyed to the apex court that a fresh affidavit addressing this matter had been submitted. He further stated that the Centre, RBI, and Bankers association were collaborating to pinpoint the sectors in distress, but no official decision had yet been reached.
In the preceding week, the Supreme Court had urged the government to step in and provide their perspective on waiving interest for loan repayments during the moratorium. The court emphasized that it could not rely solely on the RBI’s stance.
Earlier, the Reserve Bank of India (RBI) had permitted banks and financial institutions to grant a six-month moratorium to existing borrowers, including corporate term loan recipients, until August 31. However, the RBI had previously informed the court that a waiver of interest on term loans was not feasible, as it could jeopardize the financial stability of banks.
