"Courts Shouldn't Interfere In Fiscal Policy": Centre Tells Supreme Court

Saturday, 10 October 2020Newsdesk

The government on Friday informed the Supreme Court that "it's not possible to give more relief to different sectors" amid the novel coronavirus pandemic, stressing that the "courts should not interfere in fiscal policy". The centre's response came days after the top court said the government's last week's affidavit on waiving "interest on interest" on loans of up to ₹ 2 crore - frozen by the Reserve Bank of India (RBI) in a six-month moratorium granted because of the coronavirus pandemic - was "not satisfactory".

New Delhi, 10 October 2020

As per news report of NDTV, in its latest affidavit, the government has said: "Policy is the domain of the government and court should not go into sector-specific financial relief. Any further relief, besides waiving of compound interest for loans up to ₹ 2 crore, is detrimental to the national economy and banking sector." Last week, the government told the top court that it was ready to waive interest on the repayment of loans of up to ₹ 2 crore. The interest waiver is applicable for loans taken by MSMEs (Micro, Small and Medium Enterprises), for educational, housing, consumer goods and auto loans and for credit card dues.

Source -NDTV