SC on Loan Moratorium LIVE Updates: Apex court says complete interest waiver not possible, can't allow moratorium extension

• Integrity Education, Delhi
• 23, Mar 2021

SC on Loan Moratorium LIVE Updates: A Supreme Court bench comprising of three judges said judicial review is not possible on economic policy matters.

Supreme Court (Shutterstock)

The Supreme Court has pronounced its judgment on a batch of pleas related to the six-month loan moratorium period, stating that it cannot allow waiver of complete interest and extension of the moratorium.

SC observations: 

• Petitioners will not be eligible for waiver of interest on interest, extend moratorium period, or sector specific reliefs.
• There is no justification for waiving compound interest only on loans of up to Rs 2 crore. There shall be no interest on interest or compensation interest during moratorium period for all borrowers, irrespective of the loan amount. If any such amount has been collected it shall be refunded.
• Justice MR Shah said: "Courts are not advisers to the executive on matters of economic policy. Pandemic affected all sectors and govt had to take measures such as providing transport to migrants, etc. Even govt had no support during Pandemic and even GST loss that was incurred." (Inputs from Bar & Bench)

Sources : Money Control