Page 2 - Frauds Classification News Today

The pleas said the circulars were in violation of the principle of natural justice as no opportunity to be heard was being given to borrowers before classifying their accounts as fraudulent

The Bombay High Court on Monday granted interim stay on the effect of the master circulars issued by the Reserve Bank of India that permits banks to declare...

The Bombay High Court has issued an interim stay on the effect of circulars issued by the Reserve Bank of India, which empower banks to declare an account as fraudulent without a hearing. The court has granted the stay until September 11, when it will hold hearings on petitions filed by Jet Airways former owners Naresh Goyal and Anita Goyal, which will challenge the central banks approach, saying that denying borrowers a chance to be heard violates the principle of natural justice.

The high court admitted the petitions and kept them for final hearing on September 7 and 8. Meanwhile, it stayed the circulars till September 11.

The Bombay High Court on Monday granted interim stay on the effect of the master circulars issued by the Reserve Bank of India that permits banks to declare any account as a fraud account without a hearing.

The pleas claimed that based on the circular, no opportunity of being heard was given to borrowers before classifying their accounts as fraud accounts.

Get latest articles and stories on Latest News at LatestLY. The Reserve Bank will shortly come out with revised guidelines on fraudulent account classification to take into account the recent apex court order that asked lenders to ensure natural justice to a defaulter before labelling him a fraudster. Latest News | SC Order on Banking Fraud: RBI to Shortly Issue New Guidelines.

On March 27, 2023, the Supreme Court of India in the case of State Bank of India v. Rajesh Agarwal, has held that the principles of natural justice, particularly the rule of audi alteram partem,... | June 7, 2023

Says Never Said Banks Could Hold Personal Hearing Before Classifying Borrowers Account As Fraud New Delhi: The Supreme Court on Friday clarified its March 27 verdict, saying it had not directed banks to accord a

The apex court clarified that an oral or personal hearing was not necessary in every case.