Case Law Analysis
|Supreme Court of India
RBI Fraud Classification | No Personal Hearing Required, But Forensic Audit Disclosure Mandatory Under Natural Justice: SC
The Supreme Court ruled that banks need not grant personal hearings before classifying loan accounts as fraud under RBI Master Directions, but must disclose forensic audit reports to borrowers to uphold procedural fairness. This sets a precedent balancing regulatory efficiency with borrowers' right to defend against fraud allegations.
