Breaking: COVID-Plea In Supreme Court Seeks Relief To Borrowers In Form Of Fresh Loan Moratorium, Temporary Cease On Declaration Of NPA By Banks

A plea has been filed before the Supreme Court seeking directions for relief to borrowers in the form of a fresh loan moratorium, extension of time period under the restructuring scheme and temporary cease on the declaration of NPA by the financial banks to bring a relief for the public interest at large in wake of the Pandemic.The plea has been filed seeking the directions to take effective and remedial measures to redress and overcome the financial stress and hardship faced by the borrowers of the country during the Second wave of COVID19 and LockdownThe plea filed by Advocate Vishal Tiwari has urged the Court to direct that no Bank or Financial Institution will take action for auction in respect of any property of any citizen or person or party or any Body corporate for a period of Six months.Further, no account should be declared as Non-performing Asset for a period of Six months.The plea has sought directions to the Respondents to permit the lending institutions to grant interest free moratorium period for term loan and defer the payment of loan installments for a period of six months or till Situation from COVID 19 Normalizes.The plea has argued that the Central Government and its concerned ministries along with the Reserve Bank of India has failed to bring in any Sound relief in this present situation for all those stressed sectors and individuals for whom sustenance and existence has been a question.Further the plea has stated that no monetary relief and packages has been declared by the sovereign in this stressed time and people are under tremendous pressure to maintain the EMIs and is always under the threat of accounts being declared NPA.According to the petitioner, the circular issued by RBI on 6-5- 2021 for resolution plan 2.0, cannot be said adequate relief to all in the present circumstances being arbitrary, unfair and just a eyewash."Such non-action and reluctance on the part of the Respondents have violated the fundamental rights of livelihood and dignity and therefore requires the immediate intervention of this Court in the interest of public justice." the plea reads.The petitioner while stating that immediate enforcement of the preliminary measures is required to uphold the violation of fundamental rights, has made the following suggestions:1. Property Taxes, fines and penalties should be waived during all lockdown periods2. Have paid salaries last lockdown by taking the ECLG loans and requests that staff salaries be paid via direct transfer3. Moratorium should be given for at least 2 years – without interest piling up – pause it completely although after the first lock down principal amount went up substantially with huge compound interest such should not be imposed this time.4. ECLG loans be given again, rents, electricity and phone bills also needs to be disbursed.5. Vaccination drives need to be immediately increased with the compliance to covid protocols.Click here to download the petition

Breaking: COVID-Plea In Supreme Court Seeks Relief To Borrowers In Form Of Fresh Loan Moratorium, Temporary Cease On Declaration Of NPA By Banks

Srishti Ojha

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