The Supreme Court on Tuesday asked why banks were opposing personal hearings for borrowers before classifying their accounts as fraud, noting that such a step would not prejudice the banks’ interests.

A bench of Justices J.B. Pardiwala and K.V. Viswanathan posed the question while hearing a petition filed by the State Bank of India (SBI) challenging a Calcutta High Court order in a case concerning the declaration of a borrower’s account as fraudulent.

“Just make us understand what is the problem in giving him a personal oral hearing. And if given, it would cause what prejudice to the concerned bank?” the bench asked.

The court observed that since its March 2023 judgment, which mandated that borrowers be given a reasonable opportunity to respond before their accounts are declared fraudul

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