Summary
The Court disposed of a housing borrower’s challenge to moratorium-period interest after he expressed satisfaction with the government’s ex gratia scheme covering the difference between compound and simple interest for eligible loan accounts. It directed implementation of the 23 October 2020 decision so that intended beneficiaries received relief. Broader questions raised by other borrowers and sectors were left for their separate petitions.
Issues
- Whether the petitioner’s grievance was addressed by the notified ex gratia scheme and what implementation directions were required.
Provisions considered
- Operational Guidelines, clauses 1–4(1), as extracted, Government of India scheme dated 23 October 2020Recorded the scheme for the compound-versus-simple-interest difference during 1 March–31 August 2020, covering specified categories subject to the aggregate Rs.2 crore eligibility limits, and directed implementation. (¶¶ 10, 11, 12, 14)
Held
- The petitioner’s housing loan fell within the specified eligible category. The scheme contemplated credit of the difference between compound and simple interest for the six-month period, irrespective of full, partial or non-availment of the moratorium; it did not provide a general waiver of simple interest. (¶¶ 10, 11)
- Eligibility under the extracted scheme depended on sanctioned limits and outstanding amounts not exceeding Rs.2 crore in aggregate across lending facilities as of 29 February 2020, for the specified loan classes. (¶ 11)
- After the petitioner expressed satisfaction with the measures addressing his grievance, the Court directed the respondents to take all steps to implement the 23 October 2020 decision so that its benefits reached the intended beneficiaries. Other sectors’ issues were to be considered in their separate writ petitions. (¶¶ 4, 5, 13, 14)
Result
Writ petition disposed of with directions to implement the government’s 23 October 2020 relief decision. All interlocutory and impleadment applications disposed of; no blanket moratorium-interest waiver ordered.