<h1>Bank withdraws fraud classification of telecom company's loan account after borrower challenges lack of proper hearing</h1> A public sector bank withdrew its order classifying a telecommunications company's loan account as fraudulent after the account holder challenged the classification in court. The bank had originally declared the account fraudulent in November 2024, citing improper routing of funds worth over Rs 1,000 crore to group companies for paying other liabilities. The borrower contested the classification, arguing lack of proper hearing before the fraud declaration, as mandated by regulatory guidelines and Supreme Court rulings. The court had initially stayed the bank's order in February. Following the bank's withdrawal of the fraud classification, the court disposed of the petition and directed that the Reserve Bank of India be informed of the withdrawal.