On Thursday, the Supreme Court virtually extended loan repayment moratorium till September 28 as it continued the interim order directing banks not to declare any loan as NPA (non-performing asset) due to non-payment of instalments during the period.
The previous deadline of the scheme, which was implemented to help borrowers tide over the Covid-19 crisis, had ended on August 31. Borrowers had been permitted to defer loan repayments for a period of six months.
The top court asked the government to consider the plea for not charging interest on interest on loans during moratorium and neither downgrading credit rating or asset classification of borrowers.
It further told the government to consult with the Reserve Bank of India (RBI), other lenders and come out with a concrete decision on all issues raised.
Rajeev Dutta, senior advocate, appearing for a set of borrowers told the court that compound interest is still being charged in loan cases. “Where is the relief? Loans being restructured, that should have been done earlier,” he said.
“Lakhs of people are in hospitals for their sufferings, lot of people have lost their sources of income. Central government should make their stand clear, decide on relief on the issue of moratorium and waiving of interest on interest and others if it felt so,” he added.