Union Cabinet Agrees to Ex-Gratia Payment of ‘Interest on Interest’: Sources

Last week, the Supreme Court had said that it was a “welcome move” on the Centre’s part to waive compound interest on instalments of loans up to Rs 2 crore payable during the six-month moratorium period of March 1 to August 31 but frowned upon the over one-month time it sought to implement the decision.

A bench of Justices Ashok Bhushan, R S Reddy and M R Shah asked the government to speed up the process of implementation and said, “We welcome the Centre’s decision taken in the interest of the common man. We want it to be implemented expeditiously.” Before arguments for the day were closed, Justice Shah said in a lighter vein, “Their (people’s) Diwali is in your hands.”