Overview
- The division bench of Justices R.I. Chagla and Farhan Parvez Dubash set aside the classification and all consequent actions, including reporting to central agencies.
- Bank of India’s notices in December 2024 and July 2025 cited a May 7, 2020 Forensic Audit Report and a February 10, 2021 addendum as the basis for the tag.
- Goyal’s petition argued that he was denied a fair hearing and that the May 2020 audit found no conclusive fraud, after which lenders initially chose not to act.
- The ruling does not halt separate ED and CBI investigations tied to Canara Bank’s complaint, nor does it affect the Supreme Court-ordered liquidation of Jet Airways.
- Authorities have alleged unpaid loans of ₹538.62 crore out of ₹848.86 crore sanctioned and cited audit claims of ₹1,410.41 crore paid to related entities.