Mumbai: The Bombay High Court on Friday raised concerns over the “cut, copy, paste manner” in which banks pass orders declaring accounts as ‘defaulter’ or ‘fraud’, and asked industrialist Anil Ambani to approach the RBI against an order of the Union Bank of India declaring his loan account as ‘fraud’. A division bench of Justices Revati Mohite Dere and Neela Gokhale was hearing a petition filed by Anil Ambani challenging the Oct 10, 2024 order passed by the Union Bank of India.
He was not granted any hearing before the order was passed, he claimed, challenging two show-cause notices issued by the bank. He had also asked for copies of the documents on which the bank had relied before passing the order, but no documents were furnished, the petition claimed. During Friday’s hearing, the court said it was repeatedly coming across cases where banks declare accounts as ‘fraud’ or ‘willful defaulter’ without following the guidelines laid down by the Reserve Bank of India. PTI
