Appearing before a bench of Justices Arun Mishra and U U Lalit, SBI’s counsel Harish Salve that it was not “feasible” to reduce the rate of interest. He said 12% interest is normal as it is a case of risk investment.

NEW DELHI: With the SBI Capital insisting on 12% interest on funds to be released for stalled Amrapali projects despite the Supreme Court’s persuasion to make an exception, the court on Monday asked the Centre to intervene to reduce the interest rate.

Appearing before a bench of Justices Arun Mishra and U U Lalit, SBI’s counsel Harish Salve that it was not “feasible” to reduce the rate of interest. He said 12% interest is normal as it is a case of risk investment.

The bench, however, said the bank should not treat it as a venture to make profit as 12% interest is too high and the SBI Cap will get Rs 180 crore over five years as interest.

But SBI Cap submitted that it was difficult to reduce the rate.

The court, thereafter, asked Solicitor General Tushar Mehta to seek instructions from the finance ministry whether the rate could be reduced and brief it on Tuesday. The court said it will pass an order if the government and SBI Cap express unwillingness to reduce interest rate.

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