Supreme Court asks Centre, banks to clarify whether they are implementing waiver of interest on interest

"What have you done till now. Can you (Centre) and banks, let us know," a bench headed by Justice Ashok Bhushan said while hearing petitions seeking appropriate directions to waive off interest on interest during this Covid-19 moratorium period.

The Apex Court observed, when the government has taken a decision to waive off interest, why is it taking so much time to implement.

Why you (centre) are seeking time till November 15, why will it take an entire month to effect a simple waiver scheme, the Apex Court asked and adjourned the matter for further hearing till November 2.

The Apex Court observed, this year's Diwali of public is in the hands of the government.

We will expect the implementation of government's interest waiver by then and will review the implementation, the Apex Court said.

Justice MR Shah, another judge in the bench, said that this court have already passed an order prohibiting classification of NPAs and without a fiscal policy, proposals cannot be altered.

Petitioners sought to stop capitalizing on loans by banks.

Harish Salve, appearing for Banks Association, objected to it.

Solicitor General Tushar Mehta said that this issue was examined on issue of whether there can be interest on interest.

Justice Bhushan said, You (Centre) have already taken a decision to give benefit to people who have taken loan up to 2 crore. What about the implementation?

Justice Shah said, people are worried in terms of their accounts and for interest on interest.

The Supreme Court was hearing petitions seeking appropriate directions to waive off interest on interest during this Covid-19 moratorium period.