Supreme Court notice to Central Government and Reserve Bank on CREDAI’s petition

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Business Desk, Web4Study, New Delhi
Updated Fri, 15 May 2020 06:39 PM IST

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The Supreme Court on Friday issued a notice to the Central Government and the Reserve Bank on Credai’s petition. CREDAI is an association of real estate businessmen. The petition on behalf of CREDAI asked whether the real estate companies were entitled to take advantage of the Reserve Bank’s loan repayment moratorium.

A bench of Justice L Nageswara Rao, Justice Sanjay Kishan Kaul and Justice BR Gavai was hearing the matter in the Supreme Court. Hearing through video conferencing, the bench sought the response from the Reserve Bank and others on Credai’s petition.

In fact, CREDAI alleges that it is not yet clear whether real estate companies are eligible for the benefit of this policy or not.

Senior counsel Harish Salve, appearing for CREDAI, argued before the bench that the situation was not clear about the Reserve Bank’s implementation of this on circulars and real estate traders. Salve said that the circular of the Reserve Bank is binding on banks, but some banks are not giving the benefit of loan deferment policy to real estate traders. Salve told the bench that the Reserve Bank should clear the situation on the matter.

At the same time, Solicitor General Tushar Mehta, on behalf of the Center and others, said that he would inform the court about the matter after getting necessary instructions from the Ministry concerned.

The bench then issued notice on Credai’s petition and adjourned the hearing for two weeks.

Earlier, the Supreme Court had asked the Reserve Bank to ensure that its circular regarding the postponement policy from March 1 to May 31 is faithfully implemented. The court said that it seems that the banks are not giving its benefits to the borrowers.

The Supreme Court on Friday issued a notice to the Central Government and the Reserve Bank on Credai’s petition. CREDAI is an association of real estate businessmen. The petition on behalf of CREDAI asked whether the real estate companies were entitled to take advantage of the Reserve Bank’s loan repayment moratorium.

A bench of Justice L Nageswara Rao, Justice Sanjay Kishan Kaul and Justice BR Gavai was hearing the matter in the Supreme Court. Hearing through video conferencing, the bench sought the response from the Reserve Bank and others on Credai’s petition.

In fact, CREDAI alleges that it is not yet clear whether real estate companies are eligible for the benefit of this policy or not.

Senior counsel Harish Salve, appearing for CREDAI, argued before the bench that the situation was not clear about the Reserve Bank’s implementation of this on circulars and real estate traders. Salve said that the circular of the Reserve Bank is binding on banks, but some banks are not giving the benefit of loan deferment policy to real estate traders. Salve told the bench that the Reserve Bank should clear the situation on the matter.

At the same time, Solicitor General Tushar Mehta, on behalf of the Center and others, said that he would inform the court about the matter after getting necessary instructions from the Ministry concerned.

The bench then issued notice on Credai’s petition and adjourned the hearing for two weeks.

Earlier, the Supreme Court had asked the Reserve Bank to ensure that its circular regarding the postponement policy from March 1 to May 31 is implemented honestly. The court said that it seems that the banks are not giving its benefits to the borrowers.

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