In Brief
During the COVID-19 lockdown, the petitioner challenged the RBI's 27 March 2020 notification that allowed moratorium on loan instalments but continued accruing interest during the three-month moratorium period. The petitioner argued this violated Article 21 and natural justice, as the government had curtailed livelihoods while demanding interest payments. The Court found that the Government of India had already approved a relief scheme on 23 October 2020 granting ex-gratia payment of the difference between compound and simple interest for the moratorium period to specified loan categories (including housing loans up to Rs. 2 crores). The Court disposed the petition with directions to ensure full implementation and that benefits reach eligible borrowers.
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