New Delhi: The Supreme Court has given its verdict in the Lone Moratorium case. The court has refused to interfere in the government's lone moratorium policy. The court also refused to extend the term of the loan moratorium. The court also rejected the demand for any further economic relief. The court said the government has already waived the compound interest of small borrowers.

The court said, the court cannot order more relief. We are not economic advisors to the government. The government has also got less tax due to the epidemic. Therefore, interest cannot be completely waived. The court refused to extend the period of moratorium, but also said that no compound interest would be charged for the period during the moratorium. That means compound interest or penalty interest will not be charged from the borrowers.

The Apex Court in its judgement said what is the economic policy, what is the relief package, the government and the central bank will decide after consultations.  The decision has relieved the banks, but on the other hand, many other sectors like the real estate sector demanding interest waiver have been a major setback. The Supreme Court ruled on petitions from business associations in various sectors, including the real estate and power sector, in which they had applied for extension of debt instalment moratorium and other relief in view of the corona epidemic. A bench headed by Justice Ashok Bhushan reserved its verdict on 17th December last year after hearing arguments from all the parties.

Also Read:

Centre to focus on more and more immunization: CM Gehlot

Voting begins in Israel's parliamentary polls amidst a lingering political deadlock

Why Shahid Kapoor feel pressurized from Telugu version of 'Jersey'