[COVID-19 Second Wave] Plea in Supreme Court seeks interest-free moratorium on term loans, deferment on loan installment payments for 6 months

A petition was moved before the Supreme Court seeking directions to grant interest free moratorium period for term loan and deferment on loan installment payments for a period of six months or till the COVID situation improves. .The petition drawn by Advocate Vishal Tiwari sought a breather for lenders on the ground of unemployment and loss of business opportunities in the wake of second wave of COVID-19. The petition stated that Central Government and its concerned ministries along with the Reserve Bank of India (RBI) have failed to bring in any sound relief in this present situation for all those stressed sectors and individuals for whom sustenance and existence has become a question mark.."No such monetary relief and packages has been declared by the sovereign in this stressed time and people are under tremendous pressure to maintain the EMIs and is always under the threat of accounts being declared NPA. With no salary, revenue for individuals it has turned out to be a hopeless situation for individuals. The RBI on 6-5- 2021 has issued a circular for resolution plan 2.0, which cannot be said adequate relief to all in the present circumstances being arbitrary, unfair and just an eyewash," the petition stated. .The plea pointed out how the RBI through its circular dated August 6, 2020, provided for the facility of restructuring during the first wave of COVID. The present situation too requires similar and immediate relief for the citizens of this country, it was submitted. .The plea stated that resolution plan 2.0 circular dated May 6, 2021 for Stressed MSMEs during second wave of COVID-19, which on its face itself appears arbitrary, unfair and inadequate, is not benefitting the real stressed borrowers.."With no salary, revenue for individuals it has turned out to be a hopeless situation for individuals. The RBI on 6-5- 2021 has issued a circular for resolution plan 2.0, which cannot be said adequate relief to all in the present circumstances being arbitrary, unfair and just a eyewash," the plea stated. .Tiwari sought directions so that no bank or financial institution acts against any property of citizens or body corporate for a period of six months for non repayment of loans. It further sought directions so that no account shall be declared as non-performing asset for a period of six months.