COVID19: Loan Moratorium May Be Extended By Two Years, Centre Tells SC

Mumbai: The central government on Tuesday informed the Supreme Court that the loan moratorium period may extend for two years, following the ongoing COVID-19 pandemic and its impact on the economy.

Solicitor General Tushar Mehta submitted by the Center said the adjournment can be extended for two years.

We are in the process of identifying the distressed sectors to various benefits as per the (Covid-19) impact of hit they have taken”, Solicitor General Tushar Mehta, appearing for Centre, told the SC. 

The apex court asserted that it will hear the matter and all the parties tomorrow.

The apex court last week tagged two petitions filed by Tiwari and Sharma respectively.

While Tiwari in his petition directed to extend the moratorium period to help borrowers in deferring their EMI payment on term loans amid the pandemic, Sharma’s petition sought instructions for the forgiveness of interest on the loan repayment during the postponement. 

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