Dentons Link Legal is pleased to announce that it recently secured interim reliefs for its client, Ms. Laxmidevi Jiwarajka, staying her classification as a “fraudulent borrower” by Union Bank of India under the RBI’s 2024 Fraud Master Directions.
The Petition raised core issues of due process, including the bank’s reliance on a Transaction Audit Report prepared by the Resolution Professional of JSK Marketing Ltd. solely for insolvency purposes, the absence of any independent audit as mandated under the RBI Framework, the initiation of proceedings after an unexplained delay of several years, and the failure to furnish the underlying documents, thereby denying the Petitioner a meaningful opportunity to respond to the show cause notice.
By order dated 19th December 2025, the Hon’ble High Court stayed the impugned show cause notice, the impugned order, and all consequential actions. This order is significant as it reaffirms that fraud classification is not a mechanical exercise, and banks must adhere strictly to the prescribed procedure and principles of natural justice before imposing consequences of such gravity.
The team was headed by Petrushka Dasgupta (Partner), Krishna Baruah (Principal Associate) and Altamash Qureshi (Senior Associate).