News Galiyara

SC Seeks Centre, RBI Response On Financial Restructuring Amid Covid

SC Gives Telcos 10 Yrs To Clear AGR Dues, Bars Any Reassessment

New Delhi:  The Supreme Court on Monday sought response from the Centre and the RBI with respect to various sectors which require financial restructuring in the wave of the Covid crisis.
A bench headed by Justice Ashok Bhushan and comprising Justices R. Subhash Reddy and M.R. Shah said: “The Government of India, as well as Reserve Bank of India, in the additional affidavit, may also give their response with regard to different sectors grievances highlighted by different writ petitioners in the intervention applications.”
The top court also sought clarification on recommendations made by the K.V. Kamath Committee on financial parameters to be factored in the resolution plans under the ‘Resolution Framework for Covid-19-related Stress’ along with sector specific benchmark ranges for such parameters. The Committee has recommended financial ratios for 26 sectors which could be factored by lending institutions while finalising a resolution plan for a borrower.
“It is further submitted that whatever recommendations made by the Kamath Committee, they are to be considered by the Central government as well as by the Reserve Bank of India and necessary orders to be issued to implement those recommendations, which are accepted, so that benefit of which accrue from the said report and the report may percolate to all the needy persons,” noted the bench.
The top court noted the Committee’s report has not been brought on record so far.
Solicitor General Tushar Mehta, representing the Centre, and senior advocate V. Giri, representing the RBI, submitted that the report shall be brought on the record along with the additional affidavit.
The court said: “It is also submitted that no resolution as well as policy decision, by the individual banks, have been brought on the record as to what manner the various decisions taken by the Central Government and the Reserve Bank of India will be implemented.”
Senior advocate Harish Salve, appearing for the Indian Bank Association, sought a short time to deal with the issues raised and bring on record the individual policy decisions of each bank with regard to implementation of various directions issued by Centre and the RBI.
The top court observed the affidavit filed by the Centre, mentioning the waiver of interest-on-interest on loans up to Rs 2 crore in eight categories does not give details sought by court order on September 10. It also noted that no consequential notification, circulars have been issued either by the RBI or by the Centre, to implement the waiver of interest-on-interest scheme.
The Centre, in an affidavit, informed the Supreme Court that it has taken a decision to waive “interest on interest” on loans up to Rs 2 crore during the six-month moratorium period.
The affidavit said the only solution is that the government should bear the burden resulting from waiver of compound interest.
“After careful consideration and weighing all possible options, the respondent Union of India has decided to continue the tradition of hand-holding the small borrowers,” said the Centre.
The categories of loans up to Rs 2 crore include: MSME loans, education loans, housing loans, consumer durable loans, credit card dues, auto loans, personal loans to professional and consumption loans.

This story has been sourced from a third party syndicated feed, agencies. News Galiyara accepts no responsibility or liability for its dependability, trustworthiness, reliability, and data of the text. DigitalGaliyara (OPC) Private Limited management reserves the sole right to alter, delete, or remove (without notice). If you have any concerns with the Content, then please write to us at the
Source link

Follow us on Social Media and on Google News, FacebookInstagram, and Twitter.
For Videos Content and Stories subscribe to our YouTube Channel.
News Galiyara is now on Telegram.  (@newsgaliyara) follow us and stay updated with the latest news

Related posts

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More