A petition has been filed in the Supreme Court seeking relief for borrowers in the form of a loan moratorium, an extension of time under restructuring scheme, temporary stoppage on NPA declaration by banks to bring relief to the public due to the Covid pandemic.
The plea filed by Advocate Vishal Tiwari urged the Court to provide remedial measures to address and overcome financial hardships faced by borrowers due to the second wave of the Covid pandemic. He further urged the Court to direct financial institutions and banks not to auction properties given as security for six months.
Another direction sought was to direct the respondents to permit lending institutions to grant interest-free moratorium period for loans and defer payments for loan installments for six months or till the Covid situation normalizes.
It is argued that the Central government, along with its ministries, including the RBI, has failed to bring any relief to stressed sectors and to individuals who the virus has impacted.
The petitioner further stated that the government had not given any monetary relief in these stressed times. People are under tremendous pressure to pay their EMIs with the threat of being declared NPAs hanging on their heads.
As per the petitioner, RBI’s circular dated 06.05.2021 regarding the new resolution plan did not provide adequate relief and was unfair and arbitrary. (Law Trend)