The Centre on Friday told the Supreme Court that it was not possible to provide more relief to different sectors affected by the coronavir...
The Centre on Friday told the Supreme Court that it was not possible to provide more relief to different sectors affected by the coronavirus crisis, adding that “courts should not interfere in fiscal policy”, reported NDTV. The government made the statement in an affidavit on the loan moratorium case.
“Policy is the domain of the government and court should not go into sector-specific financial relief,” the affidavit stated. “Any further relief, besides waiving of compound interest for loans up to Rs 2 crore, is detrimental to the national economy and banking sector.”
In a separate affidavit, the Reserve Bank of India said that it was not possible to extend the moratorium beyond six months, according to the Hindustan Times. The RBI said a long moratorium beyond six months “may result in vitiating the overall credit discipline which will have a debilitating impact on the process of credit creation in the economy”. It added: “Longer moratorium can raise risk of delinquencies after scheduled payments resume.”
The Centre’s response came after the Supreme Court said on Monday that the government’s affidavit on waiving “interest on interest” on loans up to Rs 2 crore was not satisfactory and must be submitted again. It had asked to consider the concerns of the real estate and electricity producers...
