Telangana High Court had dismissed a writ petition seeking to set aside the Reserve Bank of India’s classification of the bank account of M/s Golden Jubilee Hotels Private Limited as fraud.
A bench of Chief Justice Satish Chandra Sharma and Justice N. Tukaramji, pronouncing the verdict, said due process of law was followed while taking the action against Golden Jubilee Hotels. There was no reason to interfere with the RBI’s decision, the bench stated.
The RBI’s Master Directions on Fraud had a comprehensive mechanism before classifying a bank account as fraud. It is based on the documents supplied by the borrower. “It is not a case where the forensic auditor on his own prepares some documents. The borrower is well aware of all such documents based on which the forensic audit takes place,” the bench observed.
The bench said that there was no provision for grant of opportunity of hearing as requested by the petitioner since that matter was still pending before the Supreme Court.
