Decision soon on interest on deferred instalments , Centre tells SC

New Delhi , Sept 28:

The Centre informed the Supreme Court today that a decision is likely in 2-3 days over charging of interest by banks on instalments which were deferred during the moratorium period in view of the COVID-19 pandemic.

The top court asked the Centre to bring the decision on record and circulate the affidavit to the parties in a batch of pleas challenging interest on deferred instalments.

The Centre informed the top court that the matter has received very serious consideration and the decision making process is at a very advanced stage.

A bench headed by Justice Ashok Bhushan said that it would hear the batch of pleas filed by various industries, trade associations and individuals on October 5.

We will fix the matter for Monday (October 5). Whatever is your policy, whatever you have, you circulate it. We will take it up on Monday. We don’t want any further adjournment, the bench also comprising Justices R Subhash Reddy and M R Shah observed. The Centre had recently told the court that waiver of interest on deferred EMIs during moratorium period would be against the basic canons of finance and unfair to those who repaid loans as per schedule.

RBI has however come out with a scheme which provides for extension of moratorium for two years to certain stressed borrowers, the Centre had informed the top court.

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