Natural Justice Principles have to be read into RBI Master Circular on Frauds: Telangana High Court [Read Judgment]

"The principles of natural justice, especially the principles of audi alteram partem (opportunity of hearing) would have to be read into Clauses 8.9.4 and 8.9.5 of the Master Circular," the Court held.

The Telangana High Court has ruled that before an account/borrower is declared fraudulent on applying the RBI's 2016 Master Circular on the classification of accounts as frauds, an opportunity of hearing must be given to the account holder, considering the principle of natural justice, lest the circular be unconstitutional (Rajesh Agarwal v. RBI and ors).

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