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2h ago

Bombay High Court Quashes Bank of India’s ‘Fraud’ Tag on Naresh Goyal

The court held that the bank breached natural justice by failing to share key documents it relied on before branding the account as fraud.

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Overview

  • Justice R. I. Chagla set aside the classification and nullified all consequential steps, including any reporting to central agencies.
  • Bank of India had issued show-cause notices on December 30, 2024, and July 1, 2025, citing a May 7, 2020 forensic audit and a February 10, 2021 addendum.
  • Goyal told the court the 2020 audit found no conclusive fraud and that lenders decided on May 8, 2020 not to proceed against him.
  • The bench found procedural unfairness in the bank’s process, including non-disclosure of material sought by Goyal before the decision.
  • The Enforcement Directorate’s separate money-laundering case continues, with Goyal on bail since November 2024 and accused of siphoning Rs 538.62 crore.