The apex court expressed its dissatisfaction in the hearing on Monday on waiver of interest on interest in deferred EMI during the term of the loan moratorium. The Supreme Court rebuked the government's affidavit in the case. The court told the Center that the interest will be forgiven, it is not enough to say. The government should give a complete outline of how and when the interest waiver will be done.
A three-judge bench of the Supreme Court headed by Justice Ashok Bhushan heard the petitions. Solicitor General Tushar Mehta, appearing for the Central Government in the Supreme Court, said that after detailed discussion in the matter, the Central Government on MSME loans up to two crore, educational, housing, consumer, auto, credit card dues, professional and consumer loans Has decided not to charge interest on the applicable interest.
The court said that no guidelines were issued by the central bank for providing relief on interest. The court granted a week's delay to the government and the Reserve Bank of India (RBI). The court said that the Center should file an additional affidavit by October 12. The next hearing in the case will be on October 13.
Credai's question on the government
During the hearing, CREDAI, the institution of real estate, said that the government has given the figures in the affidavit, without giving any basis. Earlier, banks had to bear the burden of Rs 2 lakh crore. Now saying Rs 6 lakh crore. On what basis did the government make this assessment? Credai's lawyer Kapil Sibal said on the Central Government's affidavit that it is factless and baseless.
According to the central government, all people want to take advantage of the moratorium. Whereas only 30 per cent of the borrowers have asked for this facility. 70 per cent did not avail the facility. The affidavit has not given the option of people-restructuring. No relief has been received till September 1.
The court then said that the government and the central bank should pass orders on this. The court said that it is not the case that the report of the Kamath Committee be kept on record, but the matter is to implement it.
According to CREDAI, the government has not given any relief to the real estate sector and has not given any loan restructuring facility. Companies are paying full interest. However, Solicitor General Tushar Mehta presented on behalf of the government said that according to the available resources, relief has been given to various areas.
What did the IBA lawyer say
Indian Banks Association (IBA) lawyer Harish Salve said that there is a delay in the case, which the banks are losing. The IBA said that the hearing should be deferred for a maximum period of two to three days to answer.
RBI kept its word
Advocate V Giri on behalf of RBI said that people are feeling that interest on interest will affect them badly. Therefore, in this context more recommendations should come and discussions should take place. At the same time, banks say that the government has a two-sided approach.
What happened in the Supreme Court
Justice Bhushan said: You did not give us the information that was asked of you. The plan you have told us in the affidavit was not informed about how the banks will implement it. You have not recorded the report of the Kamat Committee.
Senior Advocate V Giri: On behalf of the RBI, I would like to plead before the court.
Justice Bhushan: We will not listen to you. Mr. Mehta has been appearing before the court on behalf of the Central Government and the RBI. Now you are saying that you will plead.
Justice Shah: There is nothing in the affidavit that says what has been done in relation to the Kamat Committee report.
Solicitor General Tushar Mehta: We have nothing to hide. We will keep it on record.
V Giri: If the court feels that the Kamat Committee report should be kept on record, then we will put it before the court.
Justice Bhushan: The point is not only to keep the report on record, but also to implement it. These are not suggestions that could have been implemented. The RBI and the Center will have to issue some orders so that people will know how they will benefit.
V Giri: We will do it.
Justice Shah: When? How will it be done? This has been going on for a long time. You should turn it into a restructuring plan.