https://www.taxtmi.com/caselaws?id=754230 Adverse classification of borrower accounts under RBI fraud and wilful defaulter frameworks requires disclosure of the material relied on, effective notice, and a meaningful hearing before final action is taken. Fraud declarations were invalid because the record did not show service of notice or opportunity to respond before the accounts were classified as fraud. Wilful defaulter orders were also invalid because the show-cause notices failed to disclose the facts and reasons forming the bank's prima facie case, and later reliance on additional grounds breached natural justice. The impugned declarations and orders were quashed, while fresh action was left open if the prescribed procedure is followed. en-us Tue, 18 Jun 2024 00:00:00 +0530 Wed, 19 Jun 2024 22:22:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754230 Adverse classification of borrower accounts under RBI fraud and wilful defaulter frameworks requires disclosure of the material relied on, effective notice, and a meaningful hearing before final action is taken. Fraud declarations were invalid because the record did not show service of notice or opportunity to respond before the accounts were classified as fraud. Wilful defaulter orders were also invalid because the show-cause notices failed to disclose the facts and reasons forming the bank's prima facie case, and later reliance on additional grounds breached natural justice. The impugned declarations and orders were quashed, while fresh action was left open if the prescribed procedure is followed. Case-Laws Indian Laws Tue, 18 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754230