Interest During Loan Moratorium : Live Updates From SC Hearing

SG asks the bench if he can continue his arguments tomorrow.

The bench says that it will continue hearing the case tomorrow at 2 PM

Bench: Mr. Mehta will you complete your submissions today?

SG: Will take an hour. There will be no repetition.

SG: Considering the variety of banks under the RBI and keeping in mind the large number of borrower segments, the first option of waiving off interest either fully or partially was not taken and repayment was subdued.

SG: First option of waiving off loans was rightly not resorted to - we have individual borrowers, corporate borrowers & the petitioners have satisfied your lordships that each sector has their own problems.

The backbone is indeed the small and medium industries.

SG: We cannot look at recovering the economy by ignoring the banking sector, so that they do not become financially unstable. This is indeed a difficult way forward. 

Solicitor General begins submissions:

First thrust by RBI was to reduce pressure of repayment of loan. Holistically, what eventually transpired post-covid period was then, revival of sectors so economy starts moving. Third was reconstruction of stressed assets.

Adv. Kishore Lambat: I'm praying for complete waiver of interest. I appear for a lawyer.

Senior Adv. Mukul Rohatgi tells the bench that he will argue after the Solicitor General.

Adv. Ashish Virmani: MSME's must be granted the same consideration. As of now we are excluded (as per the August 6 circular).

Bhandari: There is a grave emphasis on the fact that different sectors have performed differently.

Lockdown fortunately or unfortunately was a one-size fits all solution.

When the ship is sinking, not wise to decide who needs to be saved and who does not need to be saved.