NOT FAIR to charge interest for the interest on the deferred loan payment!
Posted on: 18/Jun/2020 11:28:05 AM
The Supreme Court has observed that IT IS NOT AT ALL FAIR to charge INTEREST FOR INTEREST during the deferred payment for loans.
Due to the lockdown situation since the last few months as a preventive measure against the raging coronavirus pandemic, the payment of EMIs (Equated Monthly Instalments) for the various loans taken by the public (housing. the vehicle, etc) and companies have been deferred until 31st August.
However, the banks have informed that the interest will be calculated for the deferred time period and will be charged. In this situation, Gajendra Varma filed a petition in the Supreme Court to cancel this additional interest as explained above.
This petition came up for enquiry before the bench of judges Ashok Bhushan, Sanjay Kishan Kaul, and Shah. The judges stated that it is NOT FAIR to charge interest for interest!
The judges further observed that banks should not be left to decide action after the announcement of EMI payment deference - the central government MUST intervene in this issue.
After giving some time for the Central Government and the Reserve Bank of India to review this issue and decide, the judges adjourned the case to the 1st week of August.
