Petitions filed in SC to initiate contempt of court proceedings against RBI, others
The central bank had in March 2020 declared a moratorium on repayment of loan instalments, to provide borrowers relief during the COVID-19 pandemic.
January 17, 2021 / 09:34 AM IST
A bunch of petitions have been filed in the Supreme Court (SC) to initiate contempt of court proceedings against Reserve Bank of India (RBI) Governor Shaktikanta Das and others over alleged violation of court orders in the loan moratorium case.
The top court had in September 2020 order said that until further instructions, banks cannot declare accounts as non-performing assets (NPAs) if they default after the loan moratorium ended on August 31, 2020.
The petitioners say the RBI and banks allegedly declared their accounts as NPAs, violating the SC order, according to an ANI report.
The petitioners are Gorakh Pandurang Nawade, Suryakant Prabhakar Pawar, Pritam Sengupta, and Shanti Jewellers, the report said.
The petitioners have sought compensation due to the damages caused by declaring their accounts as NPAs. The petitioners have also sought a 90-day grace period before declaring accounts as NPAs.
The central bank had in March 2020 declared a three-month moratorium on repayment of loan instalments, to provide borrowers relief during the COVID-19 pandemic. The moratorium was later extended by three months till the end of August.
Petitions have been filed in the apex court, seeking extension of the loan moratorium and complete waiver of interest during the six-moth period.