The Delhi High Court ruled that banks failed to prove intentional misuse of borrowed funds by Ratul Puri and Nita Puri, striking down their wilful defaulter status. This decision highlights the need for solid evidence before labeling borrowers, protecting them from serious financial and reputational damage.
Today, On 16th October, the Supreme Court reserved its judgment on SBI’s appeal against the NCLAT’s approval for Jet Airways’ ownership transfer to the Jalan Kalrock Consortium. Jet Airways, in insolvency since 2019, plans to resume operations in 2024, following disputes over payment obligations and resolution delays.
The Calcutta High Court ordered Punjab National Bank to compensate a disabled bank official with Rs. 3 lakh for inhumane treatment and lack of accommodation. The court also mandated sensitization of all Public Sector Banks on disability rights. The bank’s conduct was criticized, and disciplinary action against responsible individuals was directed.
A Delhi court criticized the Enforcement Directorate (ED) for flawed investigation in a money laundering case. The court summoned the Investigating Officer to explain why penal and disciplinary action should not be recommended. Special Judge Farrukh noted the failure to conduct a fair investigation, as crucial evidence was withheld. The court issued notices for the individuals implicated in the illegal activities.
The Supreme Court overturned an NGT order, absolving banks from liability for illegal activities carried out by borrowers on mortgaged premises. The Court emphasized that the onus for such misconduct lies with the borrower, granting the bank permission to transfer the property and advised the NGT to exercise prudence in attributing accountability to financial institutions.
