https://www.taxtmi.com/highlights?id=102122 Fraud classification under the RBI Fraud Master Circular, 2024 requires a reasoned order addressing the relevant facts, the noticee's submissions and the reasons for rejecting them. An order that merely reproduces forensic-audit observations and the show-cause notice, without dealing with defences, reflects non-application of mind and cannot sustain classification. The discussion further notes that proceedings against a former non-executive director were unsustainable for the audit review period where the forensic report attributed no fraudulent transaction or allegation to that director and no personal guarantee was produced. The fraud-classification order was set aside, with no permission to recommence proceedings for that period. en-us Tue, 28 Jul 2026 09:22:08 +0530 Tue, 28 Jul 2026 09:22:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=102122 Fraud classification under the RBI Fraud Master Circular, 2024 requires a reasoned order addressing the relevant facts, the noticee's submissions and the reasons for rejecting them. An order that merely reproduces forensic-audit observations and the show-cause notice, without dealing with defences, reflects non-application of mind and cannot sustain classification. The discussion further notes that proceedings against a former non-executive director were unsustainable for the audit review period where the forensic report attributed no fraudulent transaction or allegation to that director and no personal guarantee was produced. The fraud-classification order was set aside, with no permission to recommence proceedings for that period. Highlights IBC Tue, 28 Jul 2026 09:22:08 +0530 https://www.taxtmi.com/highlights?id=102122