FIRs Can Continue Against Borrowers Despite Setting Aside Of Their Loans' Classification As Fraudulent : Supreme Court

The Supreme Court held that FIRs can continue against borrowers even if the classification of their loans as fraudulent by banks is set aside. The court reasoned that the setting aside of the fraudulent classification, often due to procedural lapses, does not automatically exonerate the borrowers from potential criminal offenses that may have led to the loan default. The investigation and prosecution of criminal cases can proceed independently based on the evidence of wrongdoing, irrespective of the bank's internal classification of the account.