Trident director Yashdeep Sharma's contention was that the forensic audit report did not speak of any adverse effects vis--vis their transactions and book accounts and yet the bank unilaterally classified the accounts as fraud accounts without giving any opportunity for the hotel group to submit its contentions. PTI
Hyderabad: The Telangana High Court has rejected a plea from Golden Jubilee Hotels (Trident) to set aside the decision of the lender’s bank to classify its bank accounts as "fraud accounts".
A division bench headed by Chief Justice SC Sharma observed that the petitioner’s bank accounts were rightly declared as fraudulent, as this was done on the basis of the forensic audit report. "There is no illegality or infirmity in the decision-making process warranting court interference in the peculiar facts and circumstances of the case. The action has been taken against Golden Jubilee Hotels under due process of law," the bench said.
The petition was filed by Yashdeep Sharma, a promoter and director of Golden Jubilee Hotels. His contention was that the forensic audit report did not speak of any adverse effects vis-à-vis their transactions and book accounts and yet the bank unilaterally classified the accounts as "fraud" accounts without giving any opportunity for the hotel group to submit its contentions.
The firm had taken hundreds of crores of rupees as credit from a consortium of banks led by Bank of Baroda, Punjab National Bank, Jammu Kashmir Bank, Canara Bank, Union Bank of India etc. Around Rs 552 crore was due on this count as on March 31, 2018. Around Rs 397 crore was mentioned as of "sundry debtors" in the total debts, it was noted in the forensic report.
After going through the forensic report, the bench said that the accounts of the firm were rightly declared as "fraud accounts," and in doing so, the bank followed the guidelines of the RBI master circular.