In Setback For Banks, Supreme Court Says Hear Borrowers Before Fraud Tag

The borrowers must be heard before their accounts are declared as fraudulent, the Supreme Court held today, in a huge setback for the banks.

The former directors of Anil Ambani's Reliance Communication and others had moved different high courts over their accounts being labelled as fraud and sent to the CBI for investigation based on a central bank circular.

Though the State Bank of India and other banks had forwarded complaints of fraud against Reliance Communication to the CBI two years back, the agency couldn't file a case due to court order.