BREAKING| Banks Must Give Opportunity Of Hearing To Borrowers Before Classifying Their Accounts As Fraud : Supreme Court
www.livelaw.in
1. No opportunity of being heard is required before an FIR is lodged and registered.
2. Classification of an account as fraud not only results in reporting the crime to investigating agencies but also has other penal and civil consequences against the borrowers.
3. Debarring the borrowers from acc
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- 1. No opportunity of being heard is required before an FIR is lodged and registered. 2. Classification of an account as fraud not only results in reporting the crime to investigating agencies but also has other penal and civil consequences against the borrowers. 3. Debarring the borrowers from accessing institutional finance results in serious ci...
- 4. Such a debarment is akin to blacklisting the borrowers for being untrustworthy and unworthy of credits by banks. This Court has consistently held that an opportunity of hearing must be provided for a person blacklisted. 5. The application of audi alteram partem cannot be impliedly excluded from the Master Directions on Frauds. In view of the ti...
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