Supreme Court Partly Allows SBI Appeals on Fraud Classification

Supreme Court partly allows SBI's appeals, setting aside High Court orders mandating personal hearings for borrowers in bank fraud classification cases.
Court upholds High Court directives requiring banks to furnish forensic audit reports to borrowers before final fraud classification decisions.
Banks directed to provide forensic reports, allow written representations, and then pass fresh orders per RBI Master Directions on fraud.
Judgment clarifies procedural requirements under RBI's fraud classification framework, balancing bank discretion with borrower rights to material evidence.