EMI Loan Moratorium: SC says it cannot do judicial review of Centre’s financial policy decision unless it is malafide, arbitrary

New Delhi: Supreme Court on Tuesday said that the it cannot do judicial review of Centre’s financial policy decision unless it is malafide, arbitrary.

The Supreme Court today made it clear that waiver of complete interest is not possible because they have to pay interest to depositors like account holders and pensioners.

The Court refused to interfere with the Centre’s and Reserve Bank of India (RBI’s) decision to not extend the loan moratorium beyond August 31 last year, saying it is a policy decision.

A bench headed by Justice Ashok Bhushan said the top court cannot do judicial review of the Centre’s financial policy decision unless it is malafide and arbitrary.

The Centre had earlier submitted before the top court that if it were to consider waiving interest on all the loans and advances to all categories of borrowers for the six-month moratorium period, the amount foregone would be more than Rs 6 lakh crore.

This is a developing story.