The Bombay High Court dismissed Anil Ambani’s plea challenging SBI’s decision to classify his loan account as fraudulent. The Court upheld SBI’s action, confirming it followed RBI guidelines.
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.
MUMBAI: Today, 28th Feb,The Bombay High Court expressed serious concerns over how banks declare loan accounts as ‘fraud’ or ‘defaulter’ without properly applying their minds. The court highlighted that banks often pass such orders in a “cut, copy, paste manner” without following due procedures. The court suggested that the Reserve Bank of India (RBI) must step in and take action to ensure such lapses do not continue.
![[Valmiki Corporation Scam] Karnataka HC Rejects State's Claim of Centre-State Dispute in Union Bank's CBI Probe Plea](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/09/image-409.png?resize=447%2C367&ssl=1)
Today(24th Sept), The State of Karnataka opposed the Union Bank of India’s petition in the Karnataka High Court for a CBI probe into the alleged multi-crore Maharishi Valmiki Corporation scam, arguing it was a dispute between the State and the Centre. Senior Counsel BV Acharya cited a Supreme Court judgment to support this claim, but Justice M Nagaprasanna stated he would hear the matter on both maintainability and merits, disagreeing with the State’s position.
