Delhi high court, in an interim order on May 1, has allowed HDFC Bank to deduct a Rs 90-crore loan installment from Indiabulls' fixed deposit which it holds as security.
The Delhi High court, in an interim order on May 1, has allowed HDFC Bank to deduct `90 crore as a loan installment from Indiabulls Housing Finance (IHF) fixed deposit which it holds as security. Indiabulls had earlier filed a writ petition at Delhi HC to restrain HDFC Bank from recovering any loan amount during the moratorium period imposed by Reserve Bank of India (RBI). The banking regulator had, on March 27, announced a moratorium on term loan installments for three months from March 1,2020. However, several banks have not grant a moratorium to NBFCs.
The company spokesperson for IHF said, ” We had filed a writ petition seeking clarity as to whether moratorium is to be extended to NBFCs or not and since a principal payment of `90 crore was due to HDFC Bank it was opportune to seek this clarification.”
The company continue to maintain a strong liquidity buffer but at the same time would not like to dip into the same, so have sought clarity from RBI since banks are unsure whether moratorium is to be extended or not, Indiabulls further said in an email reply to FE.
The court has asked HDFC Bank to obtain instructions on the applicability of RBI circular on moratorium to Indiabulls Housing Finance in the next hearing.
“The time is being granted to learned counsel for HDFC Bank to obtain instructions as to whether the circular per se would be applicable to the petitioner,” the court said in its interim order. The court has also specified that HDFC Bank would not insist on replenishment of the amount till the next date. The court will hear the matter next on May 6.
RBI governor Shaktikanta Das on Saturday held a meeting with the heads of banks and reviewed the economic situation and implementation of various measures announced by it to reduce stress in the financial system amid the Covid-19 crisis. According to the sources, the matter of granting moratorium to NBFCs was also discussed in the meeting.