Senior Advocate Sundaram appears for Real estates association of India:
The problem I am facing today is with respect to leaving everything at the discretion of banks.
Dutta: Charging interest on interest is absolutely prima facie void.
Dutta: The DMA under which the lockdown was imposed, section 13 becomes pertinent.
The section stipulates a power to grant relief under it.
Dutta: First respite was given to the citizens and now interest on interest is being charged? Respite is being handed over, the SG says - of course you have to help your people.
Dutta: Only people who have got advantage during this time are those supplying essential commodities. Where is the plausible logic in saying that if they can discharge their liabilities why cant you?
Dutta: Govt. has done enough “padding” to banks. But the RBI is now saying that banks are commercial entities. The crux of the RBI’s stand is that one-size does not fit all! Was a circular put forth to this effect?
Dutta: Solicitor General has tried his best to navigate through this with the RBI & Centre but what has come out of this?
If time was given to citizens to stand up on their feet why are we being treated like defaulters?
Dutta: Governments have been pumping citizens with money in UK & USA and here we are being penalised? On top of that, RBI is saying they want to make profits? When circular was issued, it was carte blanche. What is meant by one-size does not fit all?
"We are going through a hell of a time, while country was locked up. They (Govt.) came out to help us.
We thought we are secure when they waived our EMI’s but they ended us charging us with compound interest - a kind of double whammy on us!” - Dutta
Senior Advocate Rajiv Dutta is making submissions.
He is taking the bench through the sequence of events since the RBI Notification for moratorium came into effect.