India: White Collar Crime, Anti-Corruption & Fraud

India's digital economy has created millions of new retail investors, but it has also opened the door to sophisticated fraudsters who impersonate banks, fintechs, and investment firms across messaging platforms. As these scams threaten not just individual victims but entire institutions through regulatory scrutiny and brand damage, Indian courts are evolving their approach from reactive measures to proactive infrastructure dismantling. With artificial intelligence now enabling hyper-realistic deepfakes and

A Supreme Court case examines whether banks must provide personal hearings and forensic audit reports to borrowers before classifying their accounts as fraudulent under RBI Master Directions. The borrowers challenged the fraud classification after their Non-Performing Asset accounts were flagged based on a forensic audit revealing suspicious transactions and fund diversions.

The Supreme Court through its judgement dated 07.04.2026 in State Bank of India v Amit Iron Private Limited & Others held that there is no right for borrowers to seek personal hearing before classification as fraud, however furnishing Forensic Audit Reports is mandatory.