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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 bank's 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.