Supreme Court Extends Loan Moratorium

New Delhi: The Supreme Court on Thursday ordered banks and other lending organisations to extend loan moratorium till September 28.

The apex court also directed banks not to label any loans as non-performing till further instructions.

The court granted the Centre, Reserve Bank of India (RBI) and banks two weeks to work together and find a solution to waiving interests in the moratorium period.

Senior advocate Kapil Sibal, representing Real Estates Associations, argued that the “downgrading of borrowers is still continuing. Borrowers must be protected against such downgrading.”

Harish Salve appearing for Indian Banking Association opposed the plea for downgrading and sought two weeks’ time requesting the bench said, “Please don’t pass any orders on downgrading today because this is based on many factors. Companies will suffer.”

“We are inclined to grant two weeks to file an appropriate affidavit. We make it clear that we shall consider different prayers made by petitioners on the next date. All decisions taken by the RBI, GOI or the banks should be placed before the Court for consideration,” said the bench in its order.