Bombay High Court Quashes Bank Of India’s ‘Fraud’ Classification Of Naresh Goyal’s Account

The Bombay High Court quashed Bank of India’s order declaring Jet Airways founder Naresh Goyal’s account as ‘fraudulent.’ The Court found procedural lapses in not granting adequate opportunity of hearing and failing to follow RBI’s Master Directions on fraud classification. It stressed that principles of natural justice apply even in banking and regulatory matters, and arbitrary decisions affecting reputation and financial standing cannot be sustained. This ruling reinforces the accountability of banks under RBI’s regulatory framework and the judiciary’s role in protecting individuals against wrongful classification.