The Supreme Court on Monday said the Centre’s response did not contain the “necessary details” and asked it and the RBI to furnish the Kamath committee report on debt restructuring to sectors affected by the unprecedented pandemic situation in the country.
The RBI had set up the committee under K.V.Kamath, former CEO of ICICI Bank, to recommend various measures and resolution plans for sectors hit by the virus.
A bench of Justices Ashok Bhushan, R. Subhash Reddy and M.R.Shah passed the direction after the real estate and other business expressed dissatisfaction over the government’s affidavit filed on Friday in which it had announced the waiver of compound interests (interest on interests) for the six-month moratorium period ending on August 31 to all those who had availed themselves of loans below Rs 2 crore such as housing, credit cards and MSMEs.
“The affidavit (of October 2) does not give necessary details as was required by this court’s order dated September 10. Tushar Mehta, solicitor general and V. Giri, senior counsel, pray for further time to file additional affidavit bringing on record the relevant decisions and circulars issued,” the bench said.
The apex court, while giving time to the Centre and the RBI to file their additional affidavits by October 9 on the concerns raised by various sectors, posted the matter for further hearing to October 13.
At the hearing on Monday, senior advocates Kapil Sibal, C.A. Sundara, Huzefi Ahmadi and others, appearing for various petitioners, said the relief of compound interest waiver had been extended to only eight sectors whereas other crucial sectors such as real estate had been left out.
Further, it was complained that no consequential orders or circulars had been brought out by the government or banks to give effect to the assurance of waiver of interests on loans.
Meanwhile, Indian Banks’ Association (IBA), the Confederation of Real Estate Developers Association (Credai) and other parties have been granted liberty by the bench to file their responses to the affidavit of the Centre.
