Supreme Court: In a breather to customers in the case relating to waiver of interest on loan during the moratorium period, the 3-judge bench of Ashok Bhushan*, R. Subhash Reddy and MR Shah, JJ has directed that all steps to implement the decision dated 23.10.2020 of the Government of India, Ministry of Finance be taken so that benefit to the eight categories contemplated in the affidavit can be extended.
The affidavit dated 23.10.2020, states that
“ (…) the decision taken by the Central Government for granting various reliefs for the COVID-19 pandemic for benefit of waiver of interest upto Rs.2 Crores in eight categories has been approved by the Union Cabinet in its meeting dated 21.10.2020 and Ministry of Finance has issued directions dated 23.10.2020 on the subject, which has been brought on record alongwith the affidavit.”
The eight categories are:
(i) MSME loans
(ii) Education loans
(iii) Housing loans
(iv) Consumer durable loans
(v) Credit card dues
(vi) Automobile loans
(vii) Personal loans to professionals
(viii) Consumption loans up
Solicitor General Tushar Mehta submitted before the Court that the Central Government is fully conscious of the difficulties faced by the various sectors and the stakeholders of various sectors and the Finance Ministry, after the outbreak of COVID-19, has taken several measures of reliefs dealing with the potential problems faced by several sectors and in several spheres of all financial worlds.
It was further highlighted that in pursuance of circular dated 23.10.2020,
“… the State Bank of India has informed that as on 13.11.2020, as per provisional, unaudited information received so far from various lending institutions, such lending institutions have released ex-gratia amount of an aggregate exceeding Rs.4,300 Crores in over 13.12 Crore accounts of borrowers covered under the Scheme.”
The Court will continue to hear the matter on 02.12.2020.
[Gajendra Sharma v. Union of India, 2020 SCC OnLine SC 963, decided on 27.11.2020]
*Justice Ashok Bhushan has penned this judgment
For petitioner: Senior Advocate Rajiv Dutta
For RBI: Solicitor General Tushar Mehta, Senior Advocate V. Giri and Advocate Ramesh Babu M.R.
The RBI firstly directed waiver for 3 months which was extended for 6 Months. Again Ministry of Finance extended for 6 Months. Altogether with it was totally 12 Months Moratorium to Relef granted to borrowers during Corony 19 Pendamics. The Minsistry of Finances reimbursed 6,500 Crores of rupee directly to State Bank of India for the losses incurred by the Banks. The SBI was custodian to distributes amongest the Bank as per List provided. But the Banks were continued to charges the same in hidden manner hiding the contribution received from Ministry of Finance. Bank are not authorised to charge further any interest on Penal interest Amount by the Banks. But banks continued to charge illegal amount of interest by capitalising the same both interest & Penal interest amounts with the outstanding amount in a Systematic manner which is not known by any of the Borrowers. Banks pocketed 6,500 crores Plus more than 6,500 Crores. Thus collected more than 13,000 Crores by hiding the directives.
Hence the amount illegally collected need to pay back along with interest and Penalties and Loss to sustain from hardship of Business Loss. This cover the periods from 30-03-2020 to 31-03-2021 for any types of Loan. The Penal intetest is not liable to charge interest against loan accounts since 1971 as per directives of RBI and order of Judgements by 7 Bench of Judges of Supreme Court of India.
A stringent action need to be taken up against the Bank for the fraud and manipulation being conducted by the Banks.