Negative Credit Score Without Loan Triggers SC Probe into Bank Records

Rajendra Singh Panwar Vs Jay Prakash & Anr. (Supreme Court of India)

The matter was considered by the Supreme Court of India in continuation of proceedings before the Uttarakhand High Court concerning the petitioner’s grievance about an adverse credit score reflected in records of Credit Information Bureau of India Limited (CIBIL). The petitioner asserted that despite having no loan and no default, his CIBIL score had shown negative entries since 2020, preventing him from availing financial facilities. He further contended that his original PAN number was shared by two other individuals with the same name, raising apprehension that defaults by others were being reflected in his credit history. Although the Income Tax Department later issued a new PAN, the petitioner claimed that a high-risk score continued because the new PAN remained linked to the old one.

Read HC Judgment: Negative Credit Score Without Loan Triggers SC Probe into Bank Records

Before the Supreme Court, senior counsel for the petitioner submitted that despite an earlier order dated 30.07.2024, the High Court had not examined the grievance adequately. CIBIL maintained that it merely collates data provided by banks and reflects the information supplied to it. The Supreme Court noted that the versions of the concerned banks—Punjab National Bank and State Bank of India—were not on record and directed both banks to file affidavits clarifying whether the petitioner had any loan and whether there was any default. Notices were issued, impleadment was allowed, delay was condoned, and the matter was listed for further hearing.