WHITE COLLAR CRIME May (2026) WHITE COLLAR CRIME UPDATES AND JUDGMENTS

The respondent borrowers had availed credit facilities from banks led by State Bank of India. Due to irregularities in repayment, their accounts were classified as Non-Performing Assets (NPAs). A forensic audit was conducted indicating suspicious transactions and diversion of funds. Based on the audit findings, the banks issued show cause notices proposing classification of the accounts as "fraud" under RBI Master Directions. The borrowers submitted written replies but contended that they were not granted a personal/oral hearing and that the forensic audit reports were not furnished to them. The borrowers challenged the fraud classification before the High Court, relying on the precedent in Rajesh Agarwal v. RBI (2023). The matter ultimately reached the Supreme Court.

White Collar Crime - May 2026.pdf

Download PDF • 622KB