AJAY KUMAR BISHNOI Vs. RESERVE BANK OF INDIA

JUDGEMENT

(1.) This writ petition has been filed challenging the impugned proceedings of the 2nd respondent dtd. 18/10/2023, wherein the 2nd respondent has classified the loan account of the petitioner as 'fraud'.

(2.) The case of the petitioner is that he is one of the Director of the Company named Tecpro Infra Projects Limited. This Company had availed credit facilities from the State Bank of India and other banks. The bank account that was maintained by the Company with the State Bank of India was classified as Non-Performing Asset (NPA) in 2015. Thereafter, the Company was admitted into Corporate Insolvency Resolution Process (CIRP) by an order passed by the NCLT Delhi, dtd. 27/9/2019. The CIRP ended in failure and Company was sent into liquidation by order dtd. 25/11/2021. A Forensic Science Audit was conducted by the Resolution Professional (RP) for the preceding eight years from 2013-2020.

(3.) A show cause notice came to be issued by the 2nd respondent dtd. 25/7/2023, informing the petitioner that after due examination of the conduct of the account and utilization of credit facilities, the bank is prima facie satisfied that there are signals of fraud in the account. Therefore, the petitioner was called upon to submit explanation within a period of 15 days.