https://www.taxtmi.com/caselaws?id=760870 Delhi HC quashed a bank's fraud classification of a borrower's account, finding the action arbitrary and unreasonable. The court held that no show cause notice was issued to the petitioner, no hearing was provided, and he was not informed of his classification or uploading to RBI's Central Fraud Registry. Citing SC precedent in State Bank of India v. Rajesh Agarwal, the court ruled that principles of natural justice must be followed when implementing RBI's Master Directions on Fraud, as such classifications severely impact borrowers' future business prospects and access to institutional finance. en-us Fri, 25 Oct 2024 00:00:00 +0530 Mon, 28 Oct 2024 11:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760870 Delhi HC quashed a bank's fraud classification of a borrower's account, finding the action arbitrary and unreasonable. The court held that no show cause notice was issued to the petitioner, no hearing was provided, and he was not informed of his classification or uploading to RBI's Central Fraud Registry. Citing SC precedent in State Bank of India v. Rajesh Agarwal, the court ruled that principles of natural justice must be followed when implementing RBI's Master Directions on Fraud, as such classifications severely impact borrowers' future business prospects and access to institutional finance. Case-Laws Companies Law Fri, 25 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760870