Supreme Court: Borrowers can’t seek personal hearing before account declared ‘fraud’

What Happened

The Supreme Court ruled Tuesday that borrowers have no legal right to personal or oral hearings before banks declare accounts as 'fraud' under RBI guidelines. The court said show-cause notices, evidence submission, replies, and reasoned orders satisfy fairness requirements. Justices noted personal hearings would delay swift administrative processes and burden bank officials. However, banks must provide forensic audit reports to account holders. The ruling overturned earlier high court decisions.

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