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Centre to SC: Rs 5,270 cr credited in interest waiver plan under moratorium
Centre to SC: Rs 5,270 cr credited in interest waiver plan under moratorium

New Delhi, Nov 19 (TIWN) Solicitor General Tushar Mehta on Thursday informed the Supreme Court that Rs 5270 crore has been credited to 13.12 crore accounts in the interest waiver plan so far.

The Centre has subsidized compound interest for a 6-month moratorium for all loans up to Rs 2 crore. Mehta submitted before a bench headed by Justice Ashok Bhushan that the government is on top of the matter and it is taking all the necessary steps.  Mehta submitted that pre-COVID defaulters cannot benefit from a fresh resolution framework and the committee for resolution framework for COVID related stress has assessed various sectors.  Detailing other measures, he assured the top court that the Disaster Management Authority has done whatever it could.  Mehta told the Supreme Court that it is the responsibility of the banks to credit compound interest waiver for loans up to 2 crores, not for consumers to remind the banks of this scheme.  He added that the IBC process has already been suspended since March to stop companies from slipping into bankruptcy. " Will ensure that those who paid during moratorium are not short-changed", submitted Mehta. 

During the hearing, the bench noted that credit card users should not be given any benefit of compound interest waiver, as they are not borrowers. The bench said the credit card users don't have a loan, instead they are purchasing.  The Centre requested the top court not to consider further relief to borrowers.

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