Natural justice challenge to fraud classification directions and monitoring return met with interim protection against coercive action.

The challenge concerned the RBI circular on Master Directions on Frauds Classification and Reporting, including the absence of a hearing and alleged breach of natural justice, as well as the fraud monitoring return filed in relation to the alleged fraud. Interim relief was sought pending further consideration. Notice of motion was issued, respondents were directed to be served, and no coercive steps were to be taken against the petitioners until the next hearing date.

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Issues: Challenge to the validity of the Reserve Bank of India circular on Master Directions on Frauds Classification and Reporting on the ground of absence of hearing and violation of natural justice, and challenge to the fraud monitoring return filed in relation to the alleged fraud; whether interim protection should be granted pending further consideration.

Outcome: Notice of motion issued. Respondents were directed to be served, and no coercive steps were to be taken against the petitioners till the next date of hearing.

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