Never Said Borrowers Should Be Personally Heard Before Their Accounts Are Classified As Fraud : Supreme Court
1 year, 7 months ago

Never Said Borrowers Should Be Personally Heard Before Their Accounts Are Classified As Fraud : Supreme Court

Live Law  

The Supreme Court on Friday clarified that its judgment, which mandated that borrowers should be heard by banks before their accounts are classified as fraudulent in terms of the RBI master circulars, did not mean that they should be personally heard.Opportunity of hearing does not mean personal hearing, said the bench comprising Chief Justice of India DY Chandrachud and Justice PS Narasimha. The Supreme Court on Friday clarified that its judgment, which mandated that borrowers should be heard by banks before their accounts are classified as fraudulent in terms of the RBI master circulars, did not mean that they should be personally heard. SG however contended that since the Supreme Court upheld the Telangana High Court, other courts may interpret that personal hearing is necessary. The bench proceeded to dispose of the application with the following order : "The apprehension which is expressed by the learned Solicitor General is that since the judgment of the division bench of the High Court of Telangana was upheld in judgement of this court, the judgement of this court may be interpreted in future to mean that the grant of a personal hearing is mandatory, though it has not been so clarified in the conclusions of the judgement of this Court.

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History of this topic

'Bank Should Remain Vigilant' : Supreme Court Holds SBI Liable To Refund Amount To Customer Who Reported Fraudulent Transaction
2 days, 21 hours ago

'Bank Should Remain Vigilant' : Supreme Court Holds SBI Liable To Refund Amount To Customer Who Reported Fraudulent Transaction

Live Law  

The Supreme Court recently observed that banks cannot shy away from the responsibility to safeguard their customers from unauthorized transactions reported from their accounts. The Court upheld the State Bank of India's liability for the fraudulent and unauthorized transactions reported in the customer's bank account. The bench was hearing the SLP filed by the SBI against the Gauhati High Court's …

Bank fraud allegations must never be levelled lightly
5 months, 3 weeks ago

Bank fraud allegations must never be levelled lightly

Live Mint  

The Reserve Bank of India’s latest revision of its Master Circular on Fraud Risk Management in banks and other regulated entities has not come a day too soon. This revision of instructions follows a recent Supreme Court ruling which said the principles of natural justice demand that the borrower be given a chance and time to respond to a charge …

‘Don’t shout at me': CJI DY Chandrachud chides lawyer during electoral bonds hearing
9 months, 3 weeks ago

‘Don’t shout at me': CJI DY Chandrachud chides lawyer during electoral bonds hearing

Hindustan Times  

New Delhi: Chief Justice of India DY Chandrachud on Monday chided a lawyer during the Supreme Court's hearing on the electoral bonds case. Read here: Electoral Bonds: Supreme Court rebukes SBI, says don't be ‘selective’ Per a viral video, CJI Chandrachud scolded advocate Mathews Nedumpara and told him not to raise his voice. Meanwhile, the top court directed the SBI …

Lender Banks Required To Provide Audit Reports To Borrowers & Allow Representation Before Classifying Accounts As Fraud: Gujarat High Court
10 months ago

Lender Banks Required To Provide Audit Reports To Borrowers & Allow Representation Before Classifying Accounts As Fraud: Gujarat High Court

Live Law  

The Gujarat High Court while partly allowing a special civil application has emphasized the importance of lender banks affording borrowers the opportunity to review audit reports and present their case before categorizing an account as fraudulent. During meetings held on 18.08.2020 and 29.09.2020, discussions were held regarding forensic audit reports dated 11.08.2020 and 18.09.2020, along with various related issues, including …

Delhi High Court Calls For Meeting To Ensure Banks Follow SOP On Providing Info About Fraudulent Transactions To Law Enforcement Agencies
11 months ago

Delhi High Court Calls For Meeting To Ensure Banks Follow SOP On Providing Info About Fraudulent Transactions To Law Enforcement Agencies

Live Law  

The Delhi High Court has directed the Indian Banks Association to hold a meeting to ensure that all banks follow the Standard Operating Procedure in respect of providing information on fraudulent transactions to the law enforcement agencies.Justice Prathiba M Singh observed that the SOP and the manner in which it has to be implemented by all the banks is still …

Should Banks Inform Borrowers About Changes In Interest Rates, Give Annual Loan Statements? Supreme Court Asks RBI
1 year, 3 months ago

Should Banks Inform Borrowers About Changes In Interest Rates, Give Annual Loan Statements? Supreme Court Asks RBI

Live Law  

The Supreme Court of India on Monday requested the Reserve Bank of India to submit an affidavit clarifying its directives concerning banks’ obligations to borrowers. A bench of Justices Sanjiv Khanna and SVN Bhatti was hearing a special leave petition filed by the Punjab National Bank against an August 2022 decision of the Punjab and Haryana High Court quashing a …

Bombay HC stays RBI circular allowing banks to declare fraud accounts without hearing
1 year, 6 months ago

Bombay HC stays RBI circular allowing banks to declare fraud accounts without hearing

India Today  

The Bombay High Court, on Monday, put an interim stay on the effect of the master circular issued by the Reserve Bank of India in 2016 that allows public sector and commercial banks to declare any account as a fraudulent account without a hearing. During the hearing, the bench stayed the effect of the 2016 RBI master directions on the …

Accused Can't Claim Right Of Hearing Before Registration Of FIR : Supreme Court
1 year, 9 months ago

Accused Can't Claim Right Of Hearing Before Registration Of FIR : Supreme Court

Live Law  

The Supreme Court has held that an accused cannot claim to have a right of hearing before the registration of an FIR and that the principles of natural justice are not applicable at the stage of reporting a criminal offence.A bench comprising Chief Justice of India DY Chandrachud and Justice Hima Kohli made this observation while deciding the issue whether …

Banks Must Give Opportunity Of Hearing To Borrowers Before Classifying Their Accounts As Fraud : Supreme Court
1 year, 9 months ago

Banks Must Give Opportunity Of Hearing To Borrowers Before Classifying Their Accounts As Fraud : Supreme Court

Live Law  

In a significant verdict, the Supreme Court on Monday held that borrowers must be heard before their accounts are classified as fraud. The Court held that the principles of "audi alteram partem" must be read into the Circular issued by the Reserve Bank of India on the classification of bank accounts as fraud accounts.The bench noted that classification of accounts …

Borrowers Enter OTS ; Supreme Court Directs Bank To Re-Consider Decision Of Wilful Default
2 years ago

Borrowers Enter OTS ; Supreme Court Directs Bank To Re-Consider Decision Of Wilful Default

Live Law  

The Supreme Court Bench comprising of Justice Surya Kant and Justice J.B. Pardiwala, while adjudicating a petition filed in Orbitz Irrigation Pvt. While the Petitioner was paying further amounts towards OTS proposal, the First Committee vide its order dated 29.07.2021 had declared the Petitioners as wilful defaulters. Decision Of The Court The Bench observed that after being declared wilful defaulters, …

Judicial Service Examination: Questions With Explanatory Answers Based On Latest Supreme Court Judgments
2 years, 1 month ago

Judicial Service Examination: Questions With Explanatory Answers Based On Latest Supreme Court Judgments

Live Law  

Which of the following is true with respect to the decision in the 2020 judgment of Tofan Singh v. State of Tamil Nadu? a. NDPS officers are not police officers since they do not file any charge-sheet b. NDPS officers are police officers but confessional statements recorded by them are admissible c. NDPS officers are police officers and therefore confessional …

RBI Should Consider Genuine Applications To Exchange Demonetised Notes Of Persons Who Missed Deadline, Says Supreme Court During Hearing
2 years, 1 month ago

RBI Should Consider Genuine Applications To Exchange Demonetised Notes Of Persons Who Missed Deadline, Says Supreme Court During Hearing

Live Law  

During the hearing of the pleas challenging demonetisation, the Supreme Court on Friday orally said that the Reserve Bank of India should consider the genuine applications made by persons who missed the deadline for exchanging the demonetised currency notes. Speaking about the "700 odd applications" received by the Reserve Bank to credit the value of demonetised notes after the expiry …

"RBI Officials Involved In Scams Like Kingfisher, Yes Bank", Alleges Subramanian Swamy; Supreme Court Issues Notice On Plea For CBI Probe
2 years, 2 months ago

"RBI Officials Involved In Scams Like Kingfisher, Yes Bank", Alleges Subramanian Swamy; Supreme Court Issues Notice On Plea For CBI Probe

Live Law  

A Division Bench of the Supreme Court of India on Monday issued notice on a writ petition filed by Dr Subramanian Swamy seeking an enquiry by the Central Bureau of Investigation into the role of Reserve Bank of India officials in various banking scams. Gavai and B.V. Nagarathna that the RBI officials had allegedly escaped scrutiny with respect to their …

"Loan Defaulters Lifestyle Never Suffers; Play With Public Money": Supreme Court
2 years, 4 months ago

"Loan Defaulters Lifestyle Never Suffers; Play With Public Money": Supreme Court

Live Law  

The Supreme Court of India on Thursday observed that it's not possible for the court to monitor how many loans are recovered while hearing a PIL which highlighted the issue of loans advanced to some companies without observing the law, by state-owned Housing and Urban Development Corporation. The court was considering a petition was filed by the Centre for Public …

Public Sector Banks Can Seek Look Out Circulars Against Defaulters Only If Detrimental To Economic Interest Of India: Kerala High Court
2 years, 4 months ago

Public Sector Banks Can Seek Look Out Circulars Against Defaulters Only If Detrimental To Economic Interest Of India: Kerala High Court

Live Law  

The Kerala High Court recently held that the public sector banks can request for opening of Look Out Certificates against defaulting account holders, only if the departure of the defaulter would be detrimental to the economic interest of India or it would not be in the larger public interest.Justice V.G. The Kerala High Court recently held that the public sector …

Supreme Court adjourns Vijay Mallya\'s contempt case hearing for next week
2 years, 10 months ago

Supreme Court adjourns Vijay Mallya\'s contempt case hearing for next week

Deccan Chronicle  

New Delhi: The Supreme Court on Thursday adjourned the hearing for next week of the contempt case against fugitive businessman Vijay Mallya who was found guilty in a contempt case for withholding information from the court. The top court had held Mallya guilty of contempt of court for transferring USD 40 million to his children in violation of the court's …

Supreme Court To Hear Banks' Challenge Against RBI's RTI Notices For Disclosures On August 17
3 years, 5 months ago

Supreme Court To Hear Banks' Challenge Against RBI's RTI Notices For Disclosures On August 17

Live Law  

The Supreme Court on Friday adjourned hearing of the pleas filed by Banks challenging the notices issued by the Reserve Bank of India to them under Section 11 of the Right to Information Act as regards the inspection reports/ risk assessment reports for the years FY17-18 and FY18-19. A Justice Rao led Bench of the Supreme Court had on April …

Supreme Court Refuses To Stay RBI Notices To Bank Under RTI To Disclose Information
3 years, 6 months ago

Supreme Court Refuses To Stay RBI Notices To Bank Under RTI To Disclose Information

Live Law  

The Supreme Court on Friday refused the prayers made by Punjab National Bank and Union Bank of India to stay the RTI notices issued to them by the Reserve Bank of India to disclose information related to defaulters list, inspection reports etc.A division bench comprising Justices S Abdul Nazeer and Krishna Murari however issued notice on the writ petitions filed …

HC asks RBI, SBI to maintain status quo on accounts of three Anil Ambani-led firms
4 years ago

HC asks RBI, SBI to maintain status quo on accounts of three Anil Ambani-led firms

Live Mint  

The Delhi high court on Wednesday directed the State Bank of India and the Reserve Bank of India to maintain status quo concerning the accounts of Anil Ambani’s Reliance Communications Ltd, Reliance Telecom and Reliance Infratel. A petition by RCom’s former director Punit Garg has challenged certain vires of RBI circular 2016 on the classification of the accounts as fraud. …

Half-Hearted Approach By CBI Towards Investigating Bank Officials: Special CBI Court Ghaziabad Orders Further Investigation
4 years, 1 month ago

Half-Hearted Approach By CBI Towards Investigating Bank Officials: Special CBI Court Ghaziabad Orders Further Investigation

Live Law  

A Delhi Court on Monday pulled up the Central Bureau of Investigation for conducting a 'half-hearted' investigation against the officers of the Punjab National Bank, Ghaziabad, allegedly involved in cheating the Bank by sanctioning housing loans without proper verification of the allottees. It is difficult to believe that the accused would have been able to commit the alleged fraud without …

Advocates Permitted To Participate In Proceedings Before Banking Ombudsman Under 2006 RBI Scheme?: Madras HC To Consider [Read Order]
4 years, 2 months ago

Advocates Permitted To Participate In Proceedings Before Banking Ombudsman Under 2006 RBI Scheme?: Madras HC To Consider [Read Order]

Live Law  

The bench of Chief Justice A. P. Shah and Justice Senthil Kumar Ramamoorthy also asked the parties to shed light on a "very peculiar clause" that has been incorporated under Clause 12 of the Scheme which provides that if any Award is rendered by Ombudsman it shall lapse and shall be of no use unless a letter of acceptance of …

Hyderabad: SBI officials found guilty of property fraud
4 years, 11 months ago

Hyderabad: SBI officials found guilty of property fraud

Deccan Chronicle  

Hyderabad: The Supreme Court has found fault with officials of the State Bank of India’s Khairatabad branch for resorting to fraud, suppression of material facts in auctioning a property in Jubilee Hills without possessing legal mortgage rights. A division bench headed by Justice L. Nageshwara Rao was dealing a special leave petition filed by SBI challenging the direction of the …

SBI, Its Officers And The Law Firm Engaged By Them Are Ignorant Of Basic Principle Of Law: Bombay HC [Read Order]
5 years, 1 month ago

SBI, Its Officers And The Law Firm Engaged By Them Are Ignorant Of Basic Principle Of Law: Bombay HC [Read Order]

Live Law  

First court of the Bombay High Court on Monday expressed displeasure at the conduct of State Bank of India, its officials and the law firm engaged by them while hearing a writ petition. At the very outset, the division bench of Chief Justice Pradeep Nandrajog and Justice Bharati Dangre observed- "The absence of effective assistance to the Court by learned …

Indiabulls Housing Finance seeks earlier hearing after record slide in shares
5 years, 3 months ago

Indiabulls Housing Finance seeks earlier hearing after record slide in shares

Live Mint  

Indiabulls Housing Finance Ltd., a major Indian shadow lender that’s caught in the crosshairs of the troubles plaguing the industry, is seeking to bring forward a court hearing on fraud allegations after a record share slide. An Indian court and the police moved last week to begin separate investigations to examine allegations of fraud and misappropriation against Indiabulls and Lakshmi …

Fate Of The Accounts Covered Under The February 2018 Circular Post-Supreme Court Judgment
5 years, 9 months ago

Fate Of The Accounts Covered Under The February 2018 Circular Post-Supreme Court Judgment

Live Law  

The Supreme Court of India in the matter of Dharani Sugars & Chemical Ltd Vs. Union of India struck down Circular dated 12th February 2018 issued by RBI as ultra vires of section 35AA of the Banking Regulation Act, 1949. The Supreme Court analyzed the scope of power of RBI under Section 35 AA of the BR Act and held …

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