Consider The Impact of Second Wave of The COVID -19, Provide Relaxation in Paying EMI’s: Lawyer Represents Before Centre & RBI
(Judicial Quest News Network)
A memorandum has been submitted before the UNION OF INDIA and RESERVE BANK OF INDIA by an Advocate Vishal Tiwari urging them to consider the present second wave of COVID-19 pandemic as a great hindrance and adopt measures like loan moratorium which could sufficiently redress the financial stress faced by the millions of borrowers in the country
The representation submits that in the light of the observation made by the Apex court while disposing of his writ petition filed seeking financial relief in the form of fresh loan moratorium, extension of time period under the restructuring scheme and temporary cease on the declaration of NPA by the financial banks in the wake of the COVID-19 pandemic.
In the light of Submissions made in this Representation it is requested that Our Government and Reserve Bank of India may Consider and take further the necessary steps and decisions to help the citizens/borrowers who are hardly hit financially during the second wave of COVID 19 by providing relaxation in paying EMI’s, not turning the Accounts NPA , not evicting, dispossessing and auctioning of any property by the lending institutions till the Situation eases and Normalises and by protecting the borrowers from the illegal and violent methods of Recovery.
The memorandum further states that As the Apex court has also held that the Government can adopt decisive policy in financial matters, in this light we pray and request to the Union of India and Reserve Bank of India to adopt measures and make policy which could sufficiently redress the financial stress faced by the borrowers in the Second wave of COVID 19.
While noting that Apex Court has also held that the Government can adopt decisive policy in financial matters, the representation has requested the Government and Reserve bank of India to take necessary a step to benefit borrowers in the following ways.
- By providing relaxation in paying EMI’s,
- By not turning the accounts NPA by not evicting, dispossessing and auctioning of any property by the lending institutions till the Situation eases and normalizes
- By protecting the borrowers from the illegal and violent methods of recovery.
It is also stated in the representation that the circular issued by RBI on May 5th 2021 as “Resolution 2.0 for the MSMEs and individual Borrowers” is not sufficient to provide immediate relief to the borrowers in the present pandemic, as it speaks about eligibility criteria which prevents the vast number of borrowers from getting benefit of it.
The RBI has laid down condition that on 31-3-2021 the Account shall be standard. This condition may not be imposed because already on 31-3-2021 the businesses of the people were not good as impacted by the first wave in 2020 and lockdown. It cannot be said that prior to 1st April 2021 the everything was normal. Till 23rd march 2021 the Stay of honourable Supreme court was operating for not declaring any account NPA. It was vacated on 23rd of march 2021. RBI has left 8 days and granted the relief from 1st of April 2021. The borrowers whose accounts have been turned NPA in between 24th march 2021 and 31st march 2021 shall also be permitted to get benefit of the circular dated 5-5-2021 resolution plan 2.0.
The other important issue is of regarding the Banks Non-cooperation towards the borrowers and Account holders. Whatever circulars and reliefs through them have been issued by the RBI in the present pandemic and earlier, these are not implemented by the banks in their letter and spirit.
According to the Representation many lending institutions use illegal methods for recovery by sending Goons, making abusive phone calls to borrowers and threatening them, which cannot be permitted under rule of law and is against fair practice code
[Read the Representation]
