Srinagar: The J&K High Court on Thursday issued notice to the central and J&K government, while also issuing notice to Reserve Bank of India and Jammu and Kashmir Bank, to respond to a plea seeking waiving of interest on loan amounts during the current Covid-19 lockdown.
The petition, filed by Sheikh Feroz Ahmad, President of Restaurant and Cafe Association, Kashmir, and Mohammad Muzamil Bacha, claiming to be President of Industrial Revival and Development Forum, Kashmir, contended that on account of the prevailing lockdown, people were not in a position to pay the loan instalments to banks.
The petitioners sought a direction for waiving of interest charged by banks on term loans for the benefit of persons who had suffered on account of natural calamity, disturbances of 2016 and 2019, and of the present Covid-19 pandemic.
The petitioners sought waiving of interest on all term loans for the period relating to natural calamity, disturbances of 2016 and 2019, and that of the present Covid-19 pandemic, in terms of notification dated 27 of March, 2020, circular No.40- 619 dated 3 of January, 2020, circular No.62-528 dated 15 of December, 2016, and circular dated 24 of October, 2014.
It was submitted that upon the announcement of the national Covid lockdown, a notification was issued by the government of India permitting all term loans to be granted a moratorium of three months. However, while granting the moratorium, it had been provided that ‘interest’ shall continue to accrue on the outstanding portion of the term loans during the moratorium period.
The petition also submitted that with regard to persons belonging to the Union Territory of Jammu and Kashmir and Union Territory of Ladakh, it was not for the first time that they had to close their businesses, as in the year 2014, due to natural calamity (floods of September 2014), the entire economy was crippled, and so, too, during the 2016 unrest and 2019 lockdown.

NUSRAT SIDIQ