Thread by @barandbench

RBI CIRCULAR ON LOAN MORATORIUM:

#SupremeCourt will resume its hearing on the batch of petitions seeking relief in the form of extension of moratorium period beyond six months or waiver of interest on interest.

@RBI #LoanMoratorium

Senior lawyer Ravindra Srivastava arguing for a industry group: Disaster Management Act can override contracts in critical situation

Srivastava: Duty of government to protect those who can't protect themselves. Govt can't deny relief on basis of financial stress
@RBI

Shrivastava: any classification to be rationale or have an intelligible differentia needs to be based on a study. The DM Act can be used to collect this data rather than @FinMinIndia coming out and saying 2 crore is the limit. Either you are this side or that side!

Shrivastava: More needs to be done by the RBI. Govt's decisions can't ignore its economic capacity. Classification between class of borrowers should be just, many got relief. What is the class of big borrowers is not defined..
@RBI
#loanmoratorium

SC: What should be the criteria then? Somewhere the line has to be drawn isn't it?

Shrivastava: what should be the limit is the job of authority of the DM Act authority not the Ministry of finance. All I can say is this is arbitrary.

Shrivastava: By introducing the moratorium period, the payment obligations have been suspended for three months and subsequently another three months.

During this moratorium period of EMI, there is no interest payable and the obligation is suspended.

Shrivastava: If during these six months period, someone is not paying, then he is not a defaulter, Srivastava said.

Utsav Trivedi, lawyer for one of the petitioners (real estate developer): These are the difficult times, and the govt must step in to help at this time.

Trivedi: I should be given the right to challenge at appropriate time.
The govt has not filed any affidavit on merits of the case.
How sector wise, the case can be resolved, I don't know,?

Adv Vishal Tiwari: after this situation, many accounts will be NPA. How can these situations be handled? moratorium period must be extended till March last, 2021, keeping in view the current situation and difficulties, people are facing
#LoanMafiaHarressment

Tiwari: stay on NPA must continue, as the condition imposed for finacial restructuring that on date which borrower and lending Institution agrees on resolution plan. So if stay is lifted then, huge Number of Accounts will turn NPA which will prevent them from resolution plan.

Senior Advocate Rakesh Dwivedi begins.
#loanmoratorium