Srinagar: The J&K High Court on Tuesday sought response from the central and J&K governments and also from Reserve Bank of India and Jammu and Kashmir Bank to a plea seeking waiving of interest on loans for the period of Covid-19 lockdown.
The court directed respondents to file their responses by August 11.
A petition filed by Sheikh Feroz Ahmad, president of Restaurant and Cafe Association Kashmir, and Mohammad Muzamil Bacha, president of Industrial Revival and Development Forum Kashmir, contended that due to the Covid-19 lockdown, people were not in a position to pay the due instalments on loans they had taken, including the interest charged on the loans.
The petitioners sought a direction from the court to waive the interest charged by banks on term loans during the period when a moratorium was granted by the banks on account of special rehabilitation/ revival package for persons affected by the 2014 floods, and during the disturbances in Jammu and Kashmir in 2016 and 2019, and in the present Covid-19 lockdown.
It was submitted that in the month of March 2020, a notification was issued by the central government permitting all term loans to be granted a moratorium of three months on payment of instalments due between 1st of March 2020 and 31st of May 2020. However, while granting this moratorium, it had been provided that ‘interest’ shall continue to accrue on the outstanding portion of the term loans during the moratorium period.

NUSRAT SIDIQ