Thread by @barandbench

RBI CIRCULAR ON LOAN MORATORIUM:

#SupremeCourt today will hear matter concerning waiver of interest on interest on term loans for the period of moratorium.

The petitions before the Court had challenged the interest component of the @RBI circular on #LoanMoratorium.

Centre, in its affidavit before the #SupremeCourt, has said that the compounded interest will be waived off for the "most vulnerable class of borrowers" for loans up to the amount of Rs 2 crore.

#LoanMoratorium @RBI

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Hearing begins.

Senior Counsel Kapil Sibal counters the Centre's affidavit, says a lot of figures cites in Centre's affidavit "without any basis"

Sibal requests Court to allow him to file a reply "to place facts on record".

#SupremeCourt @RBI @KapilSibal

Senior Counsel Aryama Sundaram adds, the affidavit "eliminates the real estate sector from consideration and the affidavit does not touch us (real estate industry) at all"

#SupremeCourt @RBI #LoanMoratoroum

Sibal: The issues are far more grave, because as on September 1, all our accounts are "non standard"

(Sibal says citing difficulty for structuring of loan accounts that are non standard according to RBI circular on loan structuring)

#SupremeCourt

Solicitor General Tushar Mehta for Centre: We do not object to their request for filing reply. As far as granting time is concerned, it is the Court's prerogative and we are not opposed to it.

(Mehta adds that all stakeholders have been considered)

SC: The affidavit does not say what has been done with respect to the Kamat Committee report.

Mehta: Ther is nothing to hide, we will put the report on record.

#SupremeCourt #LoanMoratorium

Senior Counsel V Giri for @RBI: Kamat Committee was constituted by the RBI. At the highest level certain decisions were taken even during the pendency of this Writ Petition.

A large number of people have felt that the interest of interest is hitting them hard

Giri: There are more deliberations and recommendations to be made.

We will place the report on record if the SC feels it needs to be placed on record.

#SupremeCourt #LoqnMoratorium @RBI

SC: The issue is not about placing report on record but about implementing the report.

The Centre and RBI should make certain orders so that people know what benefit is extended.

Giri: It will be done

Justice MR Shah: When will it be done? This has been going on for so long.

Senior Counsel Harish Salve for the IBA: The delay is hurting the Banks. If adjournment is given for filing reply, it should not be more than 2-3 days.

Senior Counsel Rakesh Dwivedi: There is a request on behalf of the builders. The issue raised is we are not getting benefits under the approved scheme due to conflict between SBI Caps and the loans we have taken.

Senior Counsel Huzefa Ahmadi says that Kamat Committee report goes against the RBI's circular with respect to Standard Loan accounts etc

Sibal highlights that another committee was formed on September 10 - the Maheshwari commitee - dealing with same issue

Mehta counters, says the subject matter of this case should be restricted to the issue at hand.

SC dictating order:

says petitioners argue that many issues have not been dealt with in Centre's affidavit.

Kamat Committee report has not been brought on record.

SC says no consequential orders or circulars have been issued by the govt or the RBI for enforcement of the decisions

SC grants time to RBI, Centre to file additional affidavits.

SC asks to also consider the issues raised by the real estate associations and power producers

Other stakeholders also granted time to file replies to centre's affidavit. SC asks IBA to file its reply on centre's proposals. RBI to make public the recommendations made and implemented

Court to hear the case next on October 13

[RBI loan moratorium] File additional affidavits on sectoral relief; place Kamath Committee report on record: Supreme Court to Centre, RBI

@RBI #RBI #SupremeCourt
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