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Informative

DRAT directs Borrowers to pay to Canara Bank Rs.10.50 Cr towards Loan Due

Update / Judgement Date

26 Aug 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

BankingOther Legal Matters

The DRAT has directed the borrowers to pay ₹1,050 crore towards a loan due to Canara Bank. The tribunal's decision, which is a significant victory for the bank, was made on the grounds that the borrowers' claim was not supported by evidence. The ruling clarifies that a tax authority can't add a tax to a company's account without a valid reason.