https://www.taxtmi.com/caselaws?id=447678 The Allahabad HC disposed of a petition involving a company that defrauded banks of approximately Rs. 900 crores while failing to pay farmers for sugar cane supplies. The court found banks violated RBI guidelines by inadequately conducting due diligence before sanctioning loans to an already defaulting NPA company. The HC directed banks to report the fraud to CBI as mandated by RBI circulars for cases exceeding Rs. 5 crores, ordered the State Bank of India to convene Joint Lenders Forum meetings for settlement proceedings, and directed the petitioner to cooperate with investigations while authorities trace the syphoned funds. en-us Tue, 12 Dec 2023 00:00:00 +0530 Wed, 03 Jan 2024 08:13:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447678 The Allahabad HC disposed of a petition involving a company that defrauded banks of approximately Rs. 900 crores while failing to pay farmers for sugar cane supplies. The court found banks violated RBI guidelines by inadequately conducting due diligence before sanctioning loans to an already defaulting NPA company. The HC directed banks to report the fraud to CBI as mandated by RBI circulars for cases exceeding Rs. 5 crores, ordered the State Bank of India to convene Joint Lenders Forum meetings for settlement proceedings, and directed the petitioner to cooperate with investigations while authorities trace the syphoned funds. Case-Laws Indian Laws Tue, 12 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447678