https://www.taxtmi.com/caselaws?id=791324 A fraud classification based on audit material and lender consensus cannot be sustained unless the borrower is given the relied-upon material and a meaningful opportunity to respond. Here, the show cause notice did not disclose the Joint Lenders Meeting material or the fact that a majority of lenders had reported fraud, so the borrowers were denied an effective defence. The impugned order also lacked independent reasons or findings, and later reliance on the FIR could not cure defects because it was not part of the notice or the challenged order. The notice and fraud declaration were therefore set aside for breach of natural justice and non-supply of material. en-us Thu, 07 May 2026 00:00:00 +0530 Sat, 09 May 2026 07:13:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791324 A fraud classification based on audit material and lender consensus cannot be sustained unless the borrower is given the relied-upon material and a meaningful opportunity to respond. Here, the show cause notice did not disclose the Joint Lenders Meeting material or the fact that a majority of lenders had reported fraud, so the borrowers were denied an effective defence. The impugned order also lacked independent reasons or findings, and later reliance on the FIR could not cure defects because it was not part of the notice or the challenged order. The notice and fraud declaration were therefore set aside for breach of natural justice and non-supply of material. Case-Laws Companies Law Thu, 07 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791324