SC refuses to give instructions on the request to repair the difficulties of the borrowers amid the wave of Covid-19

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SC refuses to give instructions on the request to repair the difficulties of the borrowers amid the wave of Covid-19


NEW DELHI: The Supreme Court on Friday refused to give instructions on a guilty plea seeking remedial action to repair the financial difficulties borrowers faced during the second wave of the Covid-19 pandemic, saying it is in the purview of the political decision.
“The government has many things to do. They have to spend money on vaccines, they have to spend money on migrant workers. We cannot do it like this, ”said the Supreme Court, adding that it is up to the Center and the RBI to consider the issue.
“All of these are in the realm of political decision. These are issues that have financial implications and we are not the experts, ”a bank of judges Ashok Bhushan and MR Shah told lawyer Vishal Tiwari, who presented the petition.
The higher court was hearing the plea seeking directions to the Center and the Reserve Bank of India (RBI) to take effective and corrective measures, including in the form of loan default, to repair and overcome financial stress and the difficulties borrowers faced during the second wave of the Covid-19 pandemic and the shutdown.
During the hearing conducted via videoconference, Tiwari referred to reports on how the second wave of the pandemic has affected the Indian economy and said that the situation is much worse compared to last year.
The bank noted in its order that the petitioner has also attached last month’s circular by which the RBI had issued a resolution on the stress related to Covid-19 of Micro, Small and Medium Enterprises (MIPYMES).
“The petitioner who appears in person maintains that the circular does not sufficiently address the difficulties of the borrowers. Be that as it may, financial relief and other measures are in the domain of the government and are essentially related to policy issues, ”the bank said in its order.
“Therefore, we are of the opinion that no address will be passed, as stated in the written request. However, we note that all issues raised are matters of policy and it is up to the Union of India and the Reserve Bank of India to consider and make the appropriate decision. The request for a court order is resolved, ”said the higher court.
The court said it had addressed similar issues in a writ petition filed last year.
The statement submitted by Tiwari had requested instructions from the Center and the RBI to allow lenders to grant an interest-free moratorium period for term loans and defer the payment of loan installments for a period of six months or until the situation of Covid-19 to normalize. .
It had also requested instructions, including that no account should be reported as non-performing assets for a period of six months.

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