Kerala High Court Dismisses Cholamandalam Appeal, Reiterates Threshold For Intra-Court Appeals

The Kerala High Court on 19 June dismissed a writ appeal filed by Cholamandalam Investment and Finance Company Limited after holding that a purely procedural interim order, which does not affect substantive rights or cause serious prejudice, cannot be appealed under Section 5(i) of the Kerala High Court Act, 1958. A Division Bench of Justices Anil K Narendran and Muralee Krishna S ruled that an intra-court appeal lies only against orders that substantially affect the rights or liabilities of...

RBI Drops Prior Approval Requirement For Foreign Currency Note Write-Offs Exceeding USD 2,000

The Reserve Bank of India (RBI) has withdrawn the requirement for its prior approval before foreign currency notes exceeding USD 2,000 are written off and revised the reporting format for such write-offs. The change forms part of a broader revision of reporting requirements for Authorised Persons under the Foreign Exchange Management Act, 1999. It has been notified through A.P. (DIR Series) Circular No. 17 dated June 24, 2026, issued pursuant to the Foreign Exchange Management (Authorised...

One Lender's Absence Doesn't Invalidate Resolution Under RBI's Stressed Asset Framework: Karnataka High Court

The Karnataka High Court has recently held that the absence of one lender from meetings convened to consider a borrower's resolution plan under the Reserve Bank of India's Prudential Framework for Resolution of Stressed Assets, 2019 does not invalidate the resolution process. It also does not affect a decision approved by the requisite majority of lenders. Justice Lalitha Kanneganti dismissed a writ petition filed by Ganjam Nagappa and Son Private Limited, a Bengaluru-based luxury jewellery...

Explained: Five Defences Nirav Modi Raised In Bank of India Personal Guarantee Case And Why London Court Rejected Them

A court in London has held fugitive diamantaire Nirav Modi personally liable under a personal guarantee executed in favour of Bank of India. In doing so, it rejected five principal defenses raised by him and directed him to pay USD 4,105,189.34 together with contractual interest to the Bank. Deputy High Court Judge Simon Tinkler of the High Court of Justice, Business and Property Courts of England and Wales, delivered the judgment making Modi liable for over Rs 100 crore in personal guarntee...

Calcutta High Court Grants Interim Protection To Srei Equipment Finance Over Unsecured ₹273.48 Crore Loan

The Calcutta High Court has granted interim protection to Srei Equipment Finance Ltd in a dispute over a loan extended to Bengal Shristi Infrastructure Development Ltd for the Shristi Nagar Project. The court held that the lender had established a prima facie case because the loan remained unsecured to the extent that the mortgage contemplated under the financing documents had not been created. A division bench of Justices Debangsu Basak and Md. Shabbar Rashidi directed Bengal Shristi to...

Mumbai Court Sends Former RCFL CEO Devang Mody To CBI Custody In ₹7,623 Crore Bank Fraud Probe

A Special CBI Court in Mumbai on Tuesday remanded former Reliance Commercial Finance Ltd (RCFL) Chief Executive Officer and Director Devang Pravin Mody to CBI custody till June 25, 2026. The remand was granted in connection with the CBI's probe into an alleged ₹7,623 crore bank fraud involving Reliance ADA Group companies RCFL and Reliance Home Finance Ltd (RHFL). The case pertains to alleged irregularities in loans extended by a consortium of 31 banks and financial institutions to the group...

RBI Ombudsman Cannot Reject Complaints Through Unsigned Emails, Must Give Reasons: Kerala High Court

The Kerala High Court has held that the RBI Ombudsman cannot dismiss complaints through unsigned, system-generated communications that contain no reasons, observing that orders affecting the rights of parties must disclose the basis for the conclusions reached. Justice Bechu Kurian Thomas delivered the judgment while setting aside a communication issued by the RBI Ombudsman rejecting a complaint filed by Unique Enterprises and its partner against Kotak Mahindra Bank. “In the absence of...

Officers Skipping Mandatory Learning Expose Bank To Risks: Calcutta HC Upholds SBI Reimbursement Policy.

The Calcutta High Court has upheld the State Bank of India's decision to withhold certain reimbursements from officers who fail to complete mandatory learning programmes. The Court observed that employees who do not update themselves expose the bank to risks relating to money laundering and cyber fraud. Justice Raja Basu Chowdhury, in a judgment delivered on June 18, dismissed a petition filed by the All India State Bank Officers Federation challenging SBI circulars issued in 2021 that linked...

Banks Must Restrict Account Freeze To Amount Specified In Freezing Direction: Karnataka High Court

Banks cannot freeze an entire account when investigating agencies have directed freezing only up to a specified amount, the Karnataka High Court has held. The court observed that any restriction on the operation of a bank account must remain proportionate to the purpose sought to be achieved. Justice Suraj Govindaraj delivered the ruling while allowing a petition filed by a customer of IndusInd Bank. The account holder challenged the freezing of his account following communications from...

RBI Penalises Repco Home Finance, IIFL Samasta And True Credits For Regulatory Lapses

The Reserve Bank of India (RBI) on Friday imposed monetary penalties on Repco Home Finance Ltd, IIFL Samasta Finance Ltd and True Credits Pvt. Ltd for separate instances of non-compliance with regulatory directions. The highest penalty, amounting to Rs. 3.90 lakh, was imposed on IIFL Samasta Finance Ltd for violations of RBI directions on Know Your Customer (KYC) norms and fraud risk management for NBFCs. The RBI found that the company had failed to put in place a robust system for...

Punjab & Haryana HC Quashes Canara Bank's Fraud Classification For Failure To Furnish Full Forensic Audit Report

The Punjab and Haryana High Court has set aside Canara Bank's order declaring the borrowers' account as fraudulent. The Court found that the bank had not supplied the complete forensic audit report on which the fraud classification was based. It also found that the bank had not informed the borrowers that any portion of the report was being withheld due to third-party rights. A division bench of Justice Alka Sarin and Justice Ramesh Chander Dimri observed that where a bank seeks to withhold...

PIL In Supreme Court Seeks Court-Monitored Probe Into JKM Infra's ₹1,537 Crore Debt Settlement Through ARCs

A public interest litigation has been filed in the Supreme Court seeking a court-monitored investigation into allegations of large-scale diversion of bank funds by Noida-based JKM Infra Projects Ltd. The plea also seeks a probe into the assignment and settlement of the company's debt through Asset Reconstruction Companies (ARCs). The petition, filed by three advocates, seeks directions to the Reserve Bank of India (RBI), Enforcement Directorate (ED), Serious Fraud Investigation Office (SFIO),...