Moratorium: SC questions Centre, gives 3 days time to decide to interest

New Delhi: The Supreme Court today directed Solicitor General Tushar Mehta to convene a meeting of the Finance Ministry and RBI officials over the weekend to decide whether interest incurred on EMIs during the moratorium period can be charged by banks.

The apex court questioned Mehta as the court was concerned since the Centre has deferred loan for three months.

“Then how can interest of these 3 months be added?’ the apex bench comprising Justices Ashok Bhushan, Sanjay Kishan Kaul and M R Shah asked. Mehta replied: ‘I need to sit down with the RBI officials and have a meeting.”

Senior advocate and State Bank of India’s counsel Mukul Rohatgi, who intervened during the proceedings and said “all banks are of the view that interest cannot be waived for a six month EMI moratorium period”.

The SC said: “Our query was limited to whether there will be a levy of interest on deferred interest.If RBI travels beyond the query posed there will be many opinions.”

The Reserve Bank of India had on 4 June said lenders will lose Rs 2 lakh crore if interest is waived during the moratorium period.

 

NT Bureau