The Supreme Court today stayed an order passed by the Kerala and Allahabad high courts, which restrained banks and tax authorities from launching recovery proceedings owing to the novel coronavirus outbreak.
The stay was granted after the Centre moved the SC challenging the lower courts' orders.
In its petition, the government argued that the order will incentivise people to defer their bank and tax dues and could hit the government's kitty to the extent of Rs 2 lakh crore every month.
"Due to the order, the government may not get its revenues on time, which could lead to a liquidity crisis and a cash crunch," the Centre said. "A fall in revenue will hurt the government's commitment towards its monthly expenditure and its efforts to fight virus pandemic. The delay and deferment of bank dues will have a devastating impact on the financial sector."
To be updated.