The court, hearing a petition filed by lawyer Vishal Tiwari, sought directions, till the court reopens, to all the banks to adhere to extend the moratorium
period for lawyers/ service sector, transport and tourist industry, including drivers and other covered under these sectors and defer their EMI payment on term loans. It also sought that in case, such acts are committed by the lending
"The emergence of the Covid-19 pandemic in India has brought a drastic financial difficulty along with the health disaster that is going on in this country. Various people have lost jobs during this situation of biological emergency and various professionals and others have gone through real financial hardship," the plea said.
The Centre and the Reserve Bank of India (RBI) informed the Court that the moratorium
on repayment of loans could be extendable to up to two years under certain conditions and that sectors most distressed by the economic slowdown were being identified. It argued that the waiver of interest on deferred EMIs during the moratorium period would be against the basic canons of finance and unfair to those who repaid loans on schedule.
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