Rajesh Agarwal v RBI: Natural Justice in Fraud Classification

Quick Summary

This case involves Mr. Rajesh Agarwal, former Chairman and Managing Director of M/s. B.S. Limited, challenging the Reserve Bank of India's Master Directions on Fraud. Mr. Agarwal is aggrieved by the classification of his company's account as 'fraud' and 'willful defaulter' by the Joint Lenders Forum and the Fraud Identification Committee. He argues that the principles of natural justice were not included in the RBI's Master Circular.

Court :
Telangana High Court

Brief :
Aggrieved by the non-inclusion of principles of natural justice in theMaster Directions on Fraud (‘the Master Circular’, for short), dated01.07.2016, issued under Section 35-A of the Banking Regulation Act, 1949 by the Reserve Bank of India, aggrieved by the decision of the Joint Lenders Forum (‘the JLF’, for short) dated 15-02-2019, and aggrieved by the resolution of the Fraud Identification Committee (‘FIC’, for short) dated 31.07.2019, whereby both the JLF and the FIC have classified the account ofM/s. B. S. Limited, (‘the Company’, for short), of which the petitioner was the former Chairman and Managing Director, as ‘fraud’ and ‘willful defaulter’, the petitioner, Mr. Rajesh Agarwal, has approached this Court.

Citation :
Writ Petition No. 19102 of 2019

Daily Limit Reached