SBI against sharing forensic audit reports
Says giving out complete forensic auditor report with borrowers would hamper probe by law enforcement agencies
New Delhi: The State Bank of India (SBI) has moved the Supreme Court seeking exemption from sharing complete forensic audit reports with borrowers in connection with the March 27, judgment of the apex court.
On March 27, the Supreme Court ruled that the banks should give a personal hearing to borrowers before classifying their account as fraudulent, in accordance with RBI’s Master Circular of July 1, 2016, and had noted that the action of classifying an accounts as fraud not only affects the business and goodwill of the borrower, but also the right to reputation.
In an application, moved on April 13, seeking clarification on March 27 judgment, the SBI said on a purposeful reading of the judgment, the apex court has not read any personal hearing, however, it is likely to be misconstrued and spate of litigation is apprehended on this ground by those defaulters, whose default has substantially contributed to the weakening of the financial position of the banks, thereby affecting the economy of the nation.
“It is respectfully submitted that on right construction and interpretation of the judgment of this Hon’ble Court has merely required that an opportunity of hearing to be given before an account is declared as fraud. This Hon’ble Court, very rightly, did not read personal hearing into the said circular,” said the plea. The bank's application further added: “It is humbly submitted that handing over the complete Forensic Auditor Report would hamper the investigation by law enforcement agencies as it would result in forewarning the perpetrators by way of disclosure of confidential/critical information.