https://www.taxtmi.com/caselaws?id=450338 A borrower cannot be branded a wilful defaulter merely on a forensic audit report; the bank must independently apply the Master Circular and record objective satisfaction on intentional, deliberate diversion or siphoning of funds. The borrower's overall track record, including known lease arrangements, subsidiary investments and advances to a group entity, must be assessed rather than isolated transactions. A forensic report may support the enquiry, but it cannot be the sole basis for the declaration. Where the bank merely repeats the report's observations without independent assessment, the wilful defaulter declaration is unsustainable and the resulting order is liable to be set aside. en-us Thu, 29 Feb 2024 00:00:00 +0530 Mon, 04 Mar 2024 09:14:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450338 A borrower cannot be branded a wilful defaulter merely on a forensic audit report; the bank must independently apply the Master Circular and record objective satisfaction on intentional, deliberate diversion or siphoning of funds. The borrower's overall track record, including known lease arrangements, subsidiary investments and advances to a group entity, must be assessed rather than isolated transactions. A forensic report may support the enquiry, but it cannot be the sole basis for the declaration. Where the bank merely repeats the report's observations without independent assessment, the wilful defaulter declaration is unsustainable and the resulting order is liable to be set aside. Case-Laws Indian Laws Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450338