SC rejects plea seeking fresh loan moratorium

New Delhi: The Supreme Court on Friday declined a plea seeking a fresh moratorium on loan repayments in view of the second wave of Covid-19 pandemic.

While rejecting the Public Interest Litigation (PIL), a bench headed by Justice Ashok Bhushan said the issues raised in the petition are in the realm of policy decisions.

In the PIL, the petitioner has pleaded for a new loan moratorium, extension of the time under the loan restructuring scheme and a temporary cease on the declaration of non-performing assets (NPA) by banks.

The petitioner sought immediate relief from the court as the Centre and the Reserve Bank of India (RBI) have not taken adequate measures to help the common man who are currently under immense financial stress.

The plea contended that the circular issued by RBI on May 6, 2021, for resolution plan 2.0, doesn't bring adequate relief to all in the present circumstances.

The apex court had dismissed a batch of related pleas earlier, interfering with the Centre's and the RBI's decision to not extend the loan moratorium beyond August 31, 2020, stating it is a policy decision. (UNI)