Loan Moratorium Case-Supreme Court Refrains From Interfering In Economic Policy Decisions: ICICI Securities  
Birds fly over the Supreme Court of India in New Delhi, India. (Photographer: T. Narayan/Bloomberg)

Loan Moratorium Case-Supreme Court Refrains From Interfering In Economic Policy Decisions: ICICI Securities  

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

The Supreme Court’s judgement in ‘interest on interest’ waiver case is encouraging, especially in spirit as it limits scope for judicial review of economic policy decisions.

Given that no rationale was submitted for restricting the relief of ‘interest on interest’ waiver to loans up to Rs 20 million, the SC has ruled that it should be extended to all loans.

Our reading suggests the verdict is applicable only to loans under moratorium as it states that any amount ‘already recovered’ shall be refunded to the ‘concerned borrowers’, or be credited/adjusted in the next instalment.

However, we await clarity on whether the cost will be borne solely by financiers, or shared by the government.

Click on the attachment to read the full report:

ICICI Securities BFSI SC Interest waiver judgement.pdf

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