New Delhi, Apr 15 (ILNS) A Medium and Small Scale Enterprise today moved the Supreme Court, seeking direction to the Reserve Bank of India to initiate instructions and guidelines to initiate immediate incentive relief packages and interim relief for the commercial borrowers attached into small scale business, in consultation with the Ministry of Finance.
The PIL, moved by Amaltas Apparel and Accessories Pvt Ltd, involved in Retail Fashion Sector, said the RBI Circular that extended the moratorium till August 31, 2020 was a huge relief for those under financial burden to pay the EMIs regularly in this period. Later, the Supreme Court vide judgement dated March 23, 2021, vacated the restrictions imposed on the declaration of account as Non-Performing Asset.
It is, however, seen that the cases in the present days are increasing rapidly and several states have imposed lockdown or are in the process of imposing lockdown, which in turn, is again bringing in a hardship on the revenue inflow of various individuals, primarily the business sector and the MSME industries at specific, it noted.
The petitioner prayed for immediate judicial intervention and direction to RBI as small businesses were under immense pressure. It was stated in the petition that the fashion sector or clothing sector was witnessing zero revenue.
The Governor of RBI, on April 7, 2021, declared that there was no need for a loan repayment moratorium at present as the businesses were doing well, while declaring the new fiscal year monetary policy review.
It was alleged in the petition that the Banking Institutions have kept them under mental and verbal torture for the repayment of the debt. Clothing and Travel Businesses have been blocked as lesser people were engaging in public celebration; also, there was less disposable income in the hands of the public. It was also mentioned that the situation was even worse for the petitioner, as they belonged to Maharashtra. ILNS/KR/SNG/RJ