Supreme Court's important decision, listen to the side of the borrowers before declaring the bank account as fraud
The Supreme Court said on Monday that before declaring any account holder as a fraud, banks should also listen to their side. The borrower should also be heard. After this, the banks should take a decision.
The Supreme Court has given an important decision regarding the banks on Monday. The top court said that before declaring any account holder as a fraud, banks should also listen to their side. The borrower should also be heard. After this, the banks should take a decision. The court said that in a way it is similar to blacklisting the borrowers.
A bench headed by Chief Justice DY Chandrachud, while upholding a judgment of the Telangana High Court, said that the classification of accounts as fraudulent also has other consequences for the borrowers. There is a serious impact on his CIBIL. In such a situation, he should get a chance to be heard.
The bench said that before classifying the accounts of borrowers as fraud under the Master Direction on Fraud, the bank should give them an opportunity of being heard. This decision of the court has come on the petition of the State Bank of India.
A bench headed by Chief Justice DY Chandrachud upheld the Telangana High Court's judgment, saying that the classification of accounts as fraud has civil consequences for the borrowers. Such persons must be given an opportunity of being heard.
According to a report released recently, 43 percent of the people who applied for loans in the bank in the last quarter were in the age group of 18 to 43 years, who want to take a personal loan. In such a situation, before declaring the borrowers as frauds, the bank should also listen to them once.