New Delhi: The Supreme Court today said the Union government’s affidavit on waiving ‘interest on interest’ on loans up to Rs 2 crore, frozen during a six-month moratorium granted because of the coronavirus crisis, was not satisfactory.
The apex court has asked for a fresh version in a week. Stating that the affidavit fails to deal with several issues raised by petitioners, the court asked the government to consider the concerns of the real estate and power producers.
The Supreme Court also noted that no consequential orders or circulars were issued by the government or the RBI on enforcing the Centre’s decisions.
A bench comprising Justices Ashok Bhushan, R Subhash Reddy and M R Shah took up the pleas alleging that banks have decided to charge interest on the EMIs which have not been paid by the borrowers from March one to 31 August after taking benefit of the loan moratorium scheme of the Reserve Bank of India (RBI).
In the hearing conducted through video conferencing, the top court took note of the grievances that various sectors such as real estate have been left out under the new proposal by the Centre.