Does loan moratorium apply to NBFCs? SC clubs issue with other petitions

Tribune News Service

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New Delhi, June 9

Does the loan moratorium scheme announced by the RBI in March apply to non-banking finance companies (NBFC)?

The Supreme Court on Tuesday clubbed a petition seeking clarification on the eligibility of the NBFCs to avail the loan moratorium scheme with other petitions on the issue already pending before it. A Bench headed by Justice Ashok Bhushan posted the matter to be heard on June 12.

Last month, it had issued notices to the Centre and RBI on Confederation of Real Estate Developers’ Associations of India’s (CREDAI) petition seeking clarification on the issue. It had asked the Centre and RBI to clarify if NBFCs were eligible for loan moratorium under the RBI notification.

On behalf of CREDAI, senior advocate Harish Salve had submitted that RBI must clarify the position as it had implications for real estate companies.

Solicitor General Tushar Mehta had said he would seek instructions from the Finance Ministry and RBI and apprise the court.

CREDAI complained that certain banks were not providing the loan moratorium benefits to real estate companies.

The Supreme Court had earlier asked the RBI to ensure that its policies were implemented in letter and spirit and benefits were passed on to customers.