https://www.taxtmi.com/highlights?id=104139 Pendency of arbitration over underlying loan transactions does not prevent initiation of wilful-defaulter proceedings where borrowers are alleged to have disposed of assets securing credit facilities without lender approval. Such alleged conduct falls within the RBI Directions, 2024, and a show-cause notice founded on identified assets and supplied documentary material represents only a prima facie view. Borrowers must respond before the competent committees decide the matter and may use the available review process thereafter. The challenge was treated as premature; the notice remained in force and the response period was extended by two weeks. en-us Fri, 25 Sep 2026 08:16:32 +0530 Fri, 25 Sep 2026 08:16:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=104139 Pendency of arbitration over underlying loan transactions does not prevent initiation of wilful-defaulter proceedings where borrowers are alleged to have disposed of assets securing credit facilities without lender approval. Such alleged conduct falls within the RBI Directions, 2024, and a show-cause notice founded on identified assets and supplied documentary material represents only a prima facie view. Borrowers must respond before the competent committees decide the matter and may use the available review process thereafter. The challenge was treated as premature; the notice remained in force and the response period was extended by two weeks. Highlights IBC Fri, 25 Sep 2026 08:16:32 +0530 https://www.taxtmi.com/highlights?id=104139