https://www.taxtmi.com/caselaws?id=794581 A fraud classification order under RBI's fraud directions must be reasoned and must independently address the noticee's defence; a mere reproduction of the show cause notice or forensic report is invalid. The Bombay HC found the impugned order substantially unreasoned because it recorded background facts and conclusions without explaining why the petitioner's specific objections were rejected, and quashed the fraud classification. On the facts, the petitioner had ceased to be a director before the account was declared NPA and no material showed attributable transactions during the relevant review period, so fresh fraud proceedings for that same period were declined. en-us Fri, 03 Jul 2026 00:00:00 +0530 Wed, 08 Jul 2026 09:08:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794581 A fraud classification order under RBI's fraud directions must be reasoned and must independently address the noticee's defence; a mere reproduction of the show cause notice or forensic report is invalid. The Bombay HC found the impugned order substantially unreasoned because it recorded background facts and conclusions without explaining why the petitioner's specific objections were rejected, and quashed the fraud classification. On the facts, the petitioner had ceased to be a director before the account was declared NPA and no material showed attributable transactions during the relevant review period, so fresh fraud proceedings for that same period were declined. Case-Laws IBC Fri, 03 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794581