An organisation for pre-schools has moved the Supreme Court seeking direction to the Centre and RBI that such institutions be granted “interest free moratorium period for term loans” and their EMI be deferred till the Covid wave weakens.
The Indian Council of Early Childhood Educators and Institutions (ICECEI), having professional individuals, groups, pre and play schools as members, has filed the PIL seeking a direction that the loans availed by such institutions be not declared non-performing assets (NPAs) due to non-payment of EMIs during the second wave.
The plea said like regular schools, they are not earning by imparting online education to toddlers.
“The present Writ Petition is filed to enforce the fundamental rights, particularly the right to livelihood and right to dignity which is enshrined under Article 21 by seeking the directions to take effective and remedial measures to redress and overcome the financial stress and hardship faced by the pre-schools… across the country during the second wave of covid19 in the form of fresh loan moratorium, extension of time period under the restructuring scheme and temporary cease on the declaration of NPA by the financial banks…,” said the plea filed through lawyer Rohit Pandey.
These institutions have been not earning enough revenue as it is not possible to conduct online classes for toddlers.
The plea field through ICECEI”s President Yash Pal Singh referred to RBI’s notifications issued last year by which the relief of suspension of monthly loan instalment were granted to borrowers.
“The Central Government and its concerned ministries along with the Reserve Bank of India has failed to bring in any such relief in this present situation for all those stressed sectors and individuals for whom sustenance and existence has been a question,” the plea said.
The second wave of COVID-19 has shaken the health care and financial system, it said, adding the government be asked to permit “lending institutions to grant interest free moratorium period for term loan and defer the payment of loan instalments for a period of six months or till situation from COVID19 normalizes.”
“Issue writ…to ensure that all the lending Institutions … must not take the recent 16 months of the loan repayment track, Credit Score and Credit Report into consideration while scrutiny/processing the loan application or extending any grant /relief packages released by respondent Centre to the benefit of pre/play schools,” it said.
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