Borrowers must be accorded hearing before classifying bank account as fraud: SC1 min read 27 Mar 2023, 11:44 AM IST
A bench headed by Chief Justice D Y Chandrachud, while upholding a Telangana High Court verdict, said a classification of accounts as fraud results in civil consequences for borrowers and hence, an opportunity of hearing must be given to such persons.Borrowers must give opportunity of hearing before classifying bank account as fraud
The Supreme Court (SC) on 27 March said that borrowers must be heard before their accounts are classified as fraud. The court added that a reasoned order must follow if such an action is taken.
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