Supreme Court to Centre: Can’t conceal behind RBI on curiosity waiver throughout moratorium


New Delhi, August 26

The Supreme Court on Wednesday took notice of the Centre’s alleged inaction and requested it to make clear its stand inside per week on curiosity waiver for deferred mortgage installments in the course of the moratorium interval introduced on account of Covid-19 lockdown.

A Bench headed by Justice Ashok Bhushan stated the Centre had not made its stand clear on the problem even if ample powers have been out there with it below the Disaster Management Act and was “hiding behind the RBI”.

The apex courtroom granted time to the federal government after Solicitor General Tushar Mehta sought per week to file a response. “My lordships may not say that. We are working in coordination with the RBI,” Mehta stated.

The Bench, additionally comprising Justices R Subhash Reddy and MR Shah, requested the Solicitor General to make clear stand on the Act and whether or not extra curiosity on current curiosity could possibly be accrued. Senior advocate Kapil Sibal, showing for the petitioner, instructed the Bench that the mortgage moratorium deadline would finish on August 31 and sought its extension.

The apex courtroom posted the matter for listening to on September 1.

The prime courtroom had earlier stated there was “no merit in charging interest on interest” for deferred mortgage instalments.

The Bench was listening to a plea filed by Agra resident Gajendra Sharma, who has sought a path to declare the portion of the RBI’s March 27 notification “as ultra vires to the extent it charges interest on the loan amount during the moratorium period, which creates hindrance and obstruction in ‘right to life’ guaranteed by Article 21 of the Constitution”. — PTI

‘Clarify within 1 week’

  • SC has requested Centre to make clear stand on curiosity waiver throughout mortgage moratorium
  • The moratorium on mortgage instalments was introduced throughout Covid lockdown
  • SC has requested whether or not extra curiosity on current curiosity could possibly be accrued



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