The Supreme Court on Friday rejected the plea seeking the moratorium on the declaration of accounts as NPA till June 23, it announced. The court said that it is a matter of policy and that it does not see it as a ‘fit case’ for intervention.
In June, the SC rejected a plea that sought a fresh loan moratorium relief, which was set in place due to the onset of the second COVID-19 pandemic wave. The court claimed that such decisions with financial ramifications are best left to the policymakers i.e. the government and the Reserve Bank of India.
A bench consisting of Justices Ashok Bhushan and Mukeshkumar Rasikbhai Shah denied a PIL that was filed by advocate Vishal Tiwari, which sought the direction to allow his plea following the March 23, 2021 judgement by the SC. This plea was denied in the last hearing in June.
The apex court clarified that it had other pressing issues to attend to, such as vaccinations, issues relating to migrant workers and so on. The court also added that these matters come under the ambit of the government and RBI as the policymakers to assess the situations and take the appropriate measures.
The bench then vacated a September 3, 2020, stay order that prevented lenders from declaring as NPAs loan accounts that were not classified as such before August 31, 2020.
With inputs from News18