Govt. constitutes Expert Committee on issue of waiver of interest/other issues of bank loans  

Govt. constitutes Expert Committee on issue of waiver of interest & waiver of interest on interest & other related issues related to bank loans in view of the Covid-19 pandemic. 

Today the Government taking cognizance of the proceedings in ongoing hearing in Supreme Court of India in the matter regarding relief sought in terms of waiver of interest & waiver of interest on interest & other related issues related to bank loans in view of the Covid-19 pandemic. 

Government has accordingly constituted an Expert Committee for making an overall assessment so that its decisions in this regard are better informed. 

The Petitioners have expressed concern with regard to individual loans, apart from other sectors. It was submitted that individuals were more adversely affected during this period of pandemic. That banks are debting interest as well as interest on interest from the accounts of the creditors.   It is further submitted that credit rating is also being downgraded which may have adverse effect, with regard to various account holders

Earlier, on behalf of the Indian Bank Associations, assurance was given that no account shall become NPA at least for a period of two months and the accounts which were not declared NPA till 31.08.2020 shall not be declared NPA till further orders.

The writ petitioners have further demanded that the status, as was continuing till 31.08.2020, may be allowed to continue till the  matter  is considered by the Government and  appropriate decisions is taken.

Yesterday, the Hon’ble Supreme Court heard the Solicitor General, appearing on behalf of the  Union  of  India and various counsel appearing on behalf of the RBI, SBI, IBA and petitioners in this regard.

The Court was informed by the Solicitor   General that the Government of India on the highest level is considering all the issues raised, in consultation with Reserve Bank of India as well as other banks and within a period of two weeks, appropriate decision will be taken with regard to the issues, and  the  manner  and mechanism of extending benefit to different sectors.

The Indian Bank Association had asked the Apex Court that Reserve Bank  of India  and other  banks be  given time  to respond. That the banks have been following broad system of banking and without considering their stand, no interim order be passed at this stage.

The Hon’ble Supreme Court had granted two weeks time to Union of India and Banks to file appropriate affidavit to reply the issues raised along with all decisions taken by the Government of India, Reserve Bank of India or the different banks.

The Court had also directed that on the next date of hearing, the specific instructions with regard to charging of compound interest and credit rating/downgrading during Moratorium Period shall be obtained by the Counsel so that Court may pass the appropriate orders in the next date of hearing i.e. 28th September, 2020.

• Order u/s 69 of the CGST Act has to be communicated before arrest of person concerned– SC
• Refund can not be denied on the ground that it was claimed in a return filed u/s 148 – ITAT
• Distinction between religious & charitable purposes is determined by institution’s primary or dominant object
• Fit case to issue notice u/s 148 – Relevancy of material & application of mind to objections important
• AO is under an obligation to assign reasons for rejecting explanation of the assessee