Supreme court’s big decision on Loan Moratorium case, relief will not be available anymore, this is complete decision


The Supreme Court flatly refused to interfere with the loan moratorium policy during the hearing.

Loan Moratorium Case: Supreme Court has given a big decision regarding Loan Moratorium. During the hearing on Tuesday, the court flatly refused to interfere with the loan moratorium policy. The court held that the loan moratorium period would not extend. No interest will be waived. Refusal to provide any further financial relief.

The Supreme Court said during the hearing that the government has waived compound interest of many earlier borrowers. In such a situation, no further orders can be issued. We are not a finance advisor. In the Corona period, the government also suffered in many ways. The government received less tax. Therefore interest cannot be completely waived. The court has expressly refused to extend the moratorium period.


During the hearing, the court said that there will not be a full interest waiver, compound interest will also be refunded. Full interest waiver is not possible. Because it affects depositors. RBI, from various steps taken by the Center, cannot say that they did not address the issues of borrowers. If a bank has taken interest on interest, then it has to be returned.

Not only this, the court said that who should be given the relief package, it will be decided only after talks with the government and the central bank. The case was heard by a bench of Justices Ashok Bhushan, R Subhash Reddy and MR Shah. The Supreme Court said that it cannot interfere with the government’s decision to fix priorities for relief during an epidemic affecting the country. At present, the bench headed by Justice Ashok Bhushan reserved its decision on 17 December last year.



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