Banks in India will not provide a personal hearing to companies before classifying them as fraud accounts, but will re-evaluate the decision if legally challenged. The procedure, which aims to codify the steps to classify companies with outstanding loans of ₹50 crore or more as fraud accounts, follows a Supreme Court direction in March 2023 to provide a hearing to borrowers before such a step is taken. Some bankers and legal experts believe the procedure may lead to court disputes.
Banks in India will not provide a personal hearing to companies before classifying them as fraud accounts, but will re-evaluate the decision if legally challenged. The procedure, which aims to codify the steps to classify companies with outstanding loans of ₹50 crore or more as fraud accounts, follows a Supreme Court direction in March 2023 to provide a hearing to borrowers before such a step is taken. Some bankers and legal experts believe the procedure may lead to court disputes.
The government has cleared US-based chip maker Micron's project to set up a semiconductor test and packaging unit worth $2.7 billion in the country, according to sources.