Plea seeking Loan Moratorium, temporary cease on NPA declaration by banks filed in Supreme Court

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A fresh plea has been filed before the Supreme Court seeking assistance for borrowers during this COVID-19 pandemic. Among several measures, the petitioner has pleaded for a new loan moratorium, extension of the time period under the loan restructuring scheme and a temporary cease on the declaration of non-performing assets (NPA) by banks.

The petition in the Supreme Court comes to the aid of many borrowers in the country who are facing incredible financial hardships due to the COVID-19 crisis as many states are under partial or full lockdown.

The plea, filed by Advocate Vishal Tiwari, seeks immediate relief from the court as the Central government and the Reserve Bank of India (RBI) have not taken adequate measures to help the common man who are currently under immense financial stress.

The petition says the circular issued by RBI on May 6, 2021, for resolution plan 2.0, doesn’t bring adequate relief to all in the present circumstances.

“Such non-action and reluctance on the part of the Respondents have violated the fundamental rights of livelihood and dignity and therefore requires the immediate intervention of this Court in the interest of public justice,” the petition mentioned, reported Livelaw.

The petitioner has also pleaded for waiving off property taxes, penalties, and fines during lockdown periods, interest free loan moratorium of two years, and salaries to be paid via direct transfers among other measures.

Even though a loan moratorium was granted during last year’s lockdown, since interest was still accrued on the principal, many individuals who opted for the moratorium scheme had to pay a higher amount.

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