Justice MR Shah, who was part of the three-judge bench, said: “The Common Man’s Diwali is now in the government’s hands.”
Refusing to allow the government a month’s time to implement the interest waiver on loans of up to ₹ 2 crore, the apex court today asking a decision has already been taken, why should it take so long to execute it. The top court has also set a fresh deadline of November 2 for the centre. Centre had argued that it needed the time for certain formalities. Justice MR Shah, who was part of the three-judge bench, said: “The Common Man’s Diwali is now in the government’s hands.”
“The common people are worried. We are concerned with people with loan up to 2 crores,” the SC bench said, which has been persistent in demanding the government to figure out a way to give relief to the people who have been unable to repay loans due to the coronavirus-induced lockdown.
It would waive the compound interest on loans, which is expected to bring relief not only to individual borrowers but also banks, the centre has already said. It was a “huge burden” but added that they are not “mentioning the figure”, the government’s counsel said.
The RBI, in March, had granted a three-month moratorium on loans due to the Covid pandemic. It was later extended till August 31.
The government today, has expected to spell out the way ahead on an extension of the moratorium, waiving of interest, sector-wise relief and its decision on the recommendations of Mehrishi Committee, which was asked to analyse the impact of interest waiver during the Covid-linked moratorium. But the government, stressing that the outer limit for bringing relief to borrowers is November 15, sought more time from the top court.
“When you have taken a decision why it is delayed for one month?” the bench asked centre.
“Our view is one month is not required to implement the decision… The delay is not in the interests of common man… It is a welcome decision to give relief for small people. But some concrete results needed,” said the bench, comprising of justices Ashok Bhushan, R Subhash Reddy and MR Shah.
The central bank, however, has already said that it is not possible to extend the moratorium period as it would affect the banking sector and the economy.
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