The Supreme Court on Friday asked the Union government to ensure that all steps are taken for the implementation of its decision to let go of interest on eight specified categories of loans paid upto Rs 2 crore in view of the coronavirus pandemic.

The eight categories of loans include MSME (Micro, Small & Medium Enterprises), Education, Housing, Consumer durable, Credit card, Automobile, Personal and Consumption.

The bench, headed by Justice Ashok Bhushan, observed that the Covid-19 pandemic had not only caused serious threat to health, but also had affected the economic growth of India as well as other countries.

"Due to lockdown imposed by the Government of India in exercise of powers under the Disaster Management Act, 2005, there can be no denial that most of the businesses including private sector as well as public sector has been adversely affected,” it said.

"For several months, a large number of industries were not allowed to function and exemptions were granted only to few of the industries to run and carry on its activities, which were found essential and necessary in the fact situation," the bench, also comprising Justices R S Reddy and M R Shah, said.

“Although, gradually, due to Unlock- 1, 2 and 3, the industries and other business activities have been restored and the economy of the country is on track, although at a slow pace,” it added.

The top court noted that the moratorium period granted by the Reserve Bank of India was implemented from March 3 to August 31, over six months.

It further noted Solicitor General Tushar Mehta’s submission that measures taken by the Centre in exercise of jurisdiction under the Disaster Management Act, 2005 to mitigate the hardships and miseries of few sectors.

Senior advocate Rajiv Dutta, appearing for the petitioner, has also expressed satisfaction regarding the steps taken by the government.

“We dispose of the present writ petition with directions to the respondents to ensure that all steps be taken to implement the decision... so that benefit as contemplated by the Government of India percolates to those for whom financial benefits have been envisaged and extended,” the bench said.

The top court's judgement came on a PIL filed by Agra resident Gajendra Sharma seeking directions to declare the notification dated March 27, 2020 issued by Reserve Bank of India as ultra vires to the extent it charges interest on the loan amount during the moratorium period.