Borrower Accounts in India: Notice and Fair Hearing Required Before Fraud Classification, Ensuring Transparency and Fairness.

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....NPA - classifying their accounts as fraudulent - The principles of natural justice demand that the borrowers must be served a notice, given an opportunity to explain the conclusions of the forensic audit report, and be allowed to represent by the banks/ JLF before their account is classified as fraud under the Master Directions on Frauds. In addition, the decision classifying the borrower’s account as fraudulent must be made by a reasoned order - SC....