A PLEA FILED BEFORE SC SEEKING SIX MONTHS LOAN MORATORIUM AND TEMPORARY CEASE OF NPA DECLARATION BY BANK

10th May 2021

A petition has been filed before the SC seeking direction to grant interests free moratorium period for term loan and postponement of loan payments for a period of six months. Adv Vishal Tiwari moved the Petition by stating that the Central government, RBI or any other ministries have failed to bring relief for the stressed sectors and individuals for whom survival has become a question mark. No salary, monetary relief or packages during the critical situation by the sovereign is putting people under tremendous stress to maintain their EMIs and is under the threat of accounts being declared as NPA.

The RBI came up with a circular for a resolution last year; the RBI again issued a circular for resolution plan 2.0, which appears to be arbitrary as the circular only stresses MSMEs and not benefitting the real borrowers. 2.0 relief is unfair and just and eyewash.

Adv prayed to issue directions so that no financial institutions or banks act against property of citizens for the next six months for non-payment of the loan, and no account shall be declared NPA for the next six months.

Author - Papiha Ghoshal