Bank’s decision to classify account as fraudulent must be reasoned order: SC

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The Supreme Court on Monday held that a decision by a bank classifying a borrower’s account as fraudulent must be a reasoned order and such an order should be passed only after giving an opportunity to the borrower. A bench of Chief Justice of India (CJI) DY Chandrachud and Justice Hima Kohli upheld an order of the Telangana High Court in this regard.

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