https://www.taxtmi.com/caselaws?id=449213 Classification of a company account as fraud under the RBI Master Directions on Frauds, 2016 must comply with natural justice because it carries serious civil consequences. The Gujarat High Court read audi alteram partem into Clauses 8.9.4 and 8.9.5, holding that the lender must supply the forensic audit material, give a reasonable opportunity to respond, and consider objections through a reasoned order. Mere participation in meetings or awareness of a draft report was insufficient. As the forensic audit report and supplementary report were not furnished and no effective hearing was granted, the fraud declaration was quashed and the matter remitted for fresh consideration. en-us Tue, 02 Jan 2024 00:00:00 +0530 Wed, 07 Feb 2024 18:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449213 Classification of a company account as fraud under the RBI Master Directions on Frauds, 2016 must comply with natural justice because it carries serious civil consequences. The Gujarat High Court read audi alteram partem into Clauses 8.9.4 and 8.9.5, holding that the lender must supply the forensic audit material, give a reasonable opportunity to respond, and consider objections through a reasoned order. Mere participation in meetings or awareness of a draft report was insufficient. As the forensic audit report and supplementary report were not furnished and no effective hearing was granted, the fraud declaration was quashed and the matter remitted for fresh consideration. Case-Laws Indian Laws Tue, 02 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449213