Supreme Court wants the government to give 'clear plan' on moratorium loan interest waiver by November 2 — 'Diwali is in your hands now'

Supreme Court of IndiaBCCL
  • The Supreme Court has asked the government to come back with a clear plan on how it plans to waive interest for loans below ₹2 crore.
  • Next hearing for the moratorium case scheduled for November 2.
  • “Diwali is in your hands now,” Justice Shah told Solicitor General Tushar Mehta.
The Supreme Court has set the deadline of November 2 for the ongoing case on whether or not the interest on moratorium loans will be waived. The Supreme Court has asked the government to come back with a ‘clear plan’ on how it plans to waive interest on loans below ₹2 crore.

“Diwali is in your hands now,” Justice Shah told Solicitor General Tushar Mehta.


According to the three-judge bench — comprising of Justices Ashok Bhushan, Subash Reddy, and MR Shah — asserted that even though the government has said it will waive compound interest, there is no timeline in place and no plan of how it will be implemented.
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Mehta responded that the Reserve Bank of India (RBI) and the government have identified eight categories and the computation will be done based on the interest component of each of those accounts. “It is only for these modalities that time till November 15 is sought,” he told the bench.

However, the bench argued that with the interest of the common man in play, banks cannot take so much time to provide relief and leave account holders in uncertainty. “Once the government has taken a decision, there is no need for delaying it any further,” said Justice Bushan.

In its affidavit filed two weeks ago, the central government asserted that it would waive compound interest during moratorium period of MSMEs and personal loans up to ₹2 crore.
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The RBI has also issued a one-time restructuring scheme for ‘ stable’ loans — loans which have not defaulted as of March 1 — where the repayment tenure, amount, and other terms can be augmented.

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