Fraud Classification Without Adhering to RBI Directions Unjustified: Kerala HC

Tip Top Furniture Land Vs Reserve Bank of India (Kerala High Court) Kerala High Court held that passing of order and classifying account of petitioner as fraud without following Master Directions on Frauds and without furnishing a copy of the audit report is not tenable in law. Accordingly, writ petition is allowed. Facts- The first petitioner is a firm and the petitioners 2 to 7 are its partners. The 1st petitioner is one of the units of M/s.Tip Top Furniture Group. The Group manufactures, trades, imports, and exports wooden and other allied furniture. The six units of the Group had availed f...