Fraud classification requires a definite forensic finding based on complete borrower records; inconclusive audit material cannot sustain notice.

A show-cause notice proposing fraud classification cannot rest on an inconclusive forensic-audit report prepared without the borrower's complete books and supporting records. The report was based only on limited lender-provided material and expressly remained subject to further findings once full records were produced. Where the company is in liquidation, available records must be obtained through the Liquidator or investigating authority for a proper forensic examination. Reliance on complete and relevant material is required for a definite finding in a fair adjudicatory process. The notice was invalid, though fresh action may be taken after necessary records are obtained and a definite forensic finding is made.

---

---

Issues: Whether a show-cause notice proposing fraud classification could be sustained when founded on an inconclusive forensic-audit report prepared without the borrower's complete records.

Analysis: The forensic-audit report expressly recorded that it was based on limited lender-provided material, that the borrower's books and supporting records were unavailable, and that its opinion remained subject to further findings upon production of complete records. Since the company was in liquidation, its records were under the Liquidator's custody, and any proper forensic exercise required requisition and examination of available records through the Liquidator or the investigating authority. Fairness in an adjudicatory process requires reliance on complete and relevant material capable of supporting a definite finding.

Conclusion: The impugned show-cause notice was invalid because its foundational forensic-audit report was inconclusive; the bank may undertake fresh action in accordance with law after obtaining the necessary records and a definite forensic finding.

---