Vishwanathan says that the object of the Moratorium period effectuated by RBI was easing hardships, not make the consequences graver.
Justice Bhushan asks Vishwanathan to submit a note stipulating his arguments.
Vishwanathan adds that RBI made a statement about the object of the Moratorium which was a precursor to the Circular which was to restore normalcy during covid.
Vishwanathan: Hardships faced by power sector during this period many.
This is an Article 21 issue. We also have employees. Human rights infringed upon.
Vishwanathan: RBI circular an attempt to hoodwink borrowers and the top court.
Vishwanathan: Duties not been discharged by them and your lordships have to effectuate this as a Constitutional Court.
Vishwanathan calls the effort of the RBI and eye-wash.
“No heed paid to the doctrine of proportionality during this extraordinary situation,” he adds.
Vishwanathan: DMA has overriding powers over all statutes.
They are bound by the Disaster Management Act to sit down and decide the plan of action. What they did was mechanical.
Vishwanathan: Banks and sector need to sit together and profits need to be foregone. Otherwise, the ripple effect of the economy will be insurmountable.
Vishwanathan: 15-20 per cent reduction in demand, customers not taking Power.
Justice Bhushan asks Vishwanathan how he suggests the Proportionality doctrine should apply.
Vishwanathan: Your lordships should direct them (banks) to forego their profits because this is an extraordinary situation. Covid is ever-increasing, power sector has been effected heavily.