SC extends interim order on loan moratorium till September 28

Supreme Court of India

New Delhi (NVI): The Supreme Court today ordered interim extension of loan moratorium till September 28, directing banks not to tag any loans as non-performing till further directions.

The apex court adjourned the case for the last time, granting the Centre, Reserve Bank of India (RBI) and banks two weeks to work together and file a concrete reply on their stand on waiving of interest charged during the moratorium period.

A three-judge bench of the apex court, headed by Justice Ashok Bhushan, asked the Centre to file a detailed affidavit and posted the matter for further hearing after two weeks.

The apex court will continue hearing in the case on September 28.

The three-judge bench took on record the submissions made by the solicitor general Tushar Mehta, representing the Centre. It noted that the government at the highest level was considering all the issues in this batch of plea related to loan moratorium.

The order also noted that an expert committee had been constituted to look into all the issues and action will be taken by the government.

Senior lawyer Kapil Sibal, appearing for an association named CREDAI, submitted that the downgrading of borrowers is continuing, which must be protected now, and sought an extension of the loan moratorium and a stay on downgrading and interest levy.

-CHK