Supreme Court Rejects PIL Asking For Fresh Loan Moratorium

The top court declined to pass an order on fresh loan moratorium and said the issues raised in the PIL are in the realm of policy decisions.

The Supreme Court on Friday rejected a public interest litigation (PIL) demanding fresh moratorium on loan repayments in view of the second wave of Covid-19. The top court declined to pass an order on fresh loan moratorium and said the issues raised in the PIL are in the realm of policy decisions. Supreme Court, however, said it is up to the government to assess and pass an appropriate order. Last year, the Reserve Bank of India announced moratorium on loan repayments after the government imposed a nationwide lockdown to curb the spread of Covid-19 pandemic. Moratorium on all term loans, including home, auto and crop loans were announced to help customers in overcoming financial difficulties due to the coronavirus outbreak and the subsequent nation-wide lockdown.