NEW DELHI: The country’s largest lender SBI has moved an application in the Supreme Court seeking clarifications on a judgment on fraud classification of borrowers. SBI has urged the apex court to clarify whether banks can decide the time frame of adjudication depending upon its urgency.
On March 27, the Supreme Court had rejected SBI’s appeal, upholding a Telangana HC order and ruled that it is reasonably practicable for banks to provide an opportunity for a hearing to borrowers before classifying their accounts as fraud.
The bank, in its fresh application, sought to clarify that providing relevant extracts from forensic auditor report would meet the ends of justice and be prospective in operation. The application submitted that handing over the complete forensic auditor report would hamper the investigation as it would result in forewarning the perpetrators by way of disclosure of confidential/critical information.
The disclosure of the entire material against the borrower, at this stage, would give an opportunity for the borrower to delay the investigation, destroy the evidence or abscond, it said. agencies
On March 27, the Supreme Court had rejected SBI’s appeal, upholding a Telangana HC order and ruled that it is reasonably practicable for banks to provide an opportunity for a hearing to borrowers before classifying their accounts as fraud.
The bank, in its fresh application, sought to clarify that providing relevant extracts from forensic auditor report would meet the ends of justice and be prospective in operation. The application submitted that handing over the complete forensic auditor report would hamper the investigation as it would result in forewarning the perpetrators by way of disclosure of confidential/critical information.
The disclosure of the entire material against the borrower, at this stage, would give an opportunity for the borrower to delay the investigation, destroy the evidence or abscond, it said. agencies