Supreme Court defers loan moratorium case hearing to October 13 — gives RBI and the government another week to file additional affidavits

• The Supreme Court has deferred the hearing to decide whether or not interest should be charged on loans during the moratorium period by another week.
  
• India’s apex court has given the Reserve Bank of India (RBI), the Central Government and other stakeholders this time to file additional affidavits that may fully address the issue.
  
• “One week keeps getting extended, then there will be Puja holidays and there will be no end to this,” said Justice Shah.
  

The Supreme Court of India has granted the Reserve Bank of India (RBI) and the Central Government another week to file additional affidavits. According to the bench, the affidavit filed by the government over the weekend does not provide the necessary details regarding the questions asked by the court.

The Supreme Court will now hear the matter on October 13.

In the affidavit filed on Sunday, the Central Government asserted that it will waive compound interest (interest on interest) during the moratorium period for MSMEs and personal loans up to ₹2 crore.


Senior Advocate Kapil Sibal argued that the government had only filed the affidavit one day before the hearing, not giving enough time for the counsel to go through it. “They’ve completely left out the real estate sector,” added Senior Advocate C. Aryama Sundaram.

The bench pointed out that the Kamath Committee report on one-time restructuring of loans has not been placed on record. “This has to be converted into a proper restructuring scheme. There are so many poor people,” said Justice Shah.

“One week keeps getting extended, then there will be Puja holidays and there will be no end to this,” Shah added in response to the extension plea requested by Solicitor General Tushar Mehta. Senior Advocate Harish Salve also submitted that the delay is hurting banks.

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