Interest During Loan Moratorium : Live Updates From SC Hearing

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.