Declaring a person ‘fraud’ and ‘willful defaulter’ without giving a fair chance to explain is invalid

FEMA, INSURANCE & BANKING : To save clauses 8.9.4 and 8.9.5 of Master Circular dated 1-7-2016 on frauds, issued under section 35-A of Banking Regulation Act, 1949 by Reserve Bank of India from being declared as unconstitutional, it is essential to read principle of natural justice into said clauses as declaring a person/company 'fraud' and 'willful defaulter' without giving a fair chance to explain or challenge such finding is invalid

from www.taxmann.com Latest Case Laws https://www.taxmann.com/topstories/101010000000197313/declaring-a-person-‘fraud’-and-‘willful-defaulter’-without-giving-a-fair-chance-to-explain-is-invalid.aspx