BOMBAY HIGH COURT STAYS BANK ACTION AFTER SC RULES OPPORTUNITY OF HEARING TO BORROWERS BEFORE CLASSIFYING THEIR ACCOUNTS AS FRAUD MANDATORY
The court relied on the judgment of supreme court that read the principles of natural justice into RBI’s direction on fraud. The SC noted that blacklisting borrower’s account without hearing them once would debar them from accessing loans from financial institutions. Therefore, to avoid such loss, principles of natural justice have to be followed.
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