Loan Moratorium And Waiver of Interest - Live Updates From Supreme Court
Srivastava: Not practice of My lords to rely on Articles, but I have enclosed some articles wherein one financial expert has demonstrated how the waiver of compound interest works.
Relief can be granted for loans. In policy making, national authority has to apply its mind (under Disaster Management Act) but that has not been done.
Srivastava: The DMA structure as argued by Mr Salve has demolished the architecture of the DMA, with due respect. His argument has made provisions of the DMA nugatory.
Srivastava: NDMA has to collect empirical data and make a comprehensive policy, not arguing that there needs to be a complete waiver. There can be a partial waiver also but for this there is a need for a calibrated policy under the Disaster Management Act
But this is catastrophic especially in light of the Covid stress., says Srivastava
Srivastava: Invocation stipulates a last date. Prudential norms never have a cut off date.
“But there has to be a cut off date. Otherwise how will there be invocation?” Justice Reddy asks
Bench says it will re-assemble at 2 PM.
Srivastava: There has to be a solution to this, the power cannot ve left to the banks. Instead the RBI should be making provisions for resolution of the processes.
Srivastava: There has to be a solution to this, the power cannot ve left to the banks. Instead the RBI should be making provisions for resolution of the processes.