Supreme Court refuses to interfere with Central governemt, RBI's loan moratorium policy

In a significant judgement, the Supreme Court on Tuesday refused to interfere with the Central government and Reserve Bank of India's (RBI's) loan moratorium policy, and refused to extend the six months loan moratorium period, which was envisaged by the Union of India during the Covid-19 pandemic times.

A three-judge bench of the apex court, headed by Justice Dr DY Chandrachud, and also comprising Justices MR Shah and Sanjiv Khanna pronounced the judgement on many pleas seeking extension of loan moratorium.

The Supreme Court in its judgement said that waiver of complete interest is not possible as it affects depositors.

"This court won't debate academic matters of trade and commerce. Not for us to decide if the public policy could have been better. The government has its own constraint to handle the issue," Justice MR Shah, said for the bench while reading out the verdict.

"No writ of mandamus can be issued in the case," the Apex Court said, and added that if the Centre wants, it can decide on it.

We have heard the respective parties in the case. It is neither in the domain of scope nor judicial review, said Justice MR Shah while reading out the judgement on loan moratorium case in Supreme Court.

The Supreme Court also in its judgement said that no charge of penal interest from the consumer will be incurred for the period during the moratorium.

It also said that the penal, compound interest, if already recovered, is to be refunded.

The top court also said that borrowers will get the refund of compound interest on the levy charged during the moratorium period.

The Apex Court also said and took into the record that the Central government through the Ministry of Finance and the RBI has taken various steps for granting relief to the disaster affected borrowers.

The Central Government has announced the 'Garib Kalyan Package' for Rs 2 lakh crore, involving free food, grains, pulses, gas cylinders and cash payment to women, poor, and senior citizens and farmers, the Apex Court said, in its judgement today.

( With inputs from ANI )