The Supreme Court on Tuesday rejected the pleas from various trade associations and corporate bodies to extend the six-month loan moratorium period offered by the Reserve Bank of India (RBI), adding that a complete waiver of interest during the moratorium could not be granted, either.
The SC said no direction could be issued to the govt or the RBI to announce any particular financial package or relief, and held that it could not issue directions to provide relief to particular sectors over and above others.
A Bench comprising Justices D Y Chandrachud, M R Shah and Sanjiv Khanna pronounced the judgment on the loan moratorium and waiver of interest. A Bench headed by Justice Ashok Bhushan had earlier reserved its verdict on the batch of pleas on December 17 last year.
The apex court directed that there should be no interest on interest or penal interest on any amount during the loan moratorium from any borrower.
Source : Business Standard
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