By Priyanka Sambhav
“Their Diwali is in your hand” – with these words Justice M R Shah adjourned Supreme Court’s hearing on loan moratorium held on 14 October 2020. The three-judge bench will now resume hearing on 2 November 2020. The petition is seeking a waiver from ‘interest on interest’ paid during the 6-month loan moratorium period. Many loan seekers had their hope pinned to this hearing, and their wait has increased by two more weeks. But the way this bench has been hearing and asking all the tough and uncomfortable question to the government it is evident that they want action and not just lengthy reports.
Government in the beginning of this hearing had maintained that this is an RBI and bank matter. But SC was clear that government can’t hide behind RBI and clarify its position under the Disaster Management Act (DMA) and file an affidavit entailing its power. The government appointed an expert committee under ex-CAG Rajeev Mehrishi. The earlier stand changed and they filed an affidavit. On 2 October 2020 , government informed the court that they are ready to waive off the compound interest for loans of up to Rs 2 crore for MSME’s and personal loans.
On 14 October, when the bench met, the apex court was not happy with the mere announcement and asked if this relief has reached the borrowers. The government side argued that they needed time for completing certain formalities before its implemented. SC refused to allow the government a month for the implementation of interest waiver and asked if a decision has already been taken, why is the execution taking so long?
During the hearing, solicitor general Tushar Mehta, representing the Centre, submitted that the government needed time until 14th November 2020 to put this in action. But court didn’t feel so and pulled up the government for the delay asking “why it needs a one-month window to implement the move.” Adjourning the case to 2 November, the court said, “We will expect the implementation of government’s decision on interest waiver by then. We will review the implementation of the waiver.”
The first plea was filed by Agra resident Gajendra Sharma, had asked for relief from the payment of interest during the moratorium period. The petitioner had argued to waive off the accrued interest as well. His plea said- “creates hindrance and obstruction in ‘right to life’ guaranteed by Article 21 of the Constitution of India”. Realtor and shopping association had also joined the plea and are seeking relief. Though government in their 2nd Oct affidavit made it clear that no sector specific relief can be given as government has already made many announcements for various sectors.
Supreme Court has been very clear in their approach and they want the government to bring a Diwali cheer to borrowers. All eyes now on 2nd Nov hearing.
