Rajneesh Nagar v. Canara Bank Limited & ANR.
$~91 *
IN THE HIGH COURT OF DELHI AT NEW DELHI
+ W.P.(C) 915/2026 & CM APPL. 4503/2026 RAJNEESH NAGAR ....Petitioner Through:
Mr. Ashish Dholakia, Sr. Adv., Mr.
K.D. Sharma, Adv., Mr. Srikant Misra, Adv., Ms. Ananya Narayan Tyagi, Mr. Varun Sharma, Adv., Ms. Deeksha Khurana, Adv.
versus CANARA BANK LIMITED & ANR.
.....Respondents Through:
Mr. Rajesh Kumar Gautam, Miss Likivi K Jakhalu, Mr Deepanjali Choudhary, Miss Azal Aekram, Advs.
Mr. Abhishek Baid, Mr. Mohit Kumar Bafna, Mr. Praneet Das and Mr. Ravinder Kumar, Advocates for R2
CORAM:
HON'BLE MR. JUSTICE JASMEET SINGH
O R D E R
% 27.01.2026 1.
This is a writ petition filed under Article 226 of the Constitution of India seeking setting aside of the fraud declaration letter dated 20.12.2025, wherein the respondent bank has classified the petitioner's account as fraud with effect from 19.12.2025.
2.
I have heard the learned counsel for the parties. 3.
From the documents available on record, the Transaction Audit Report ("TAR") was not provided to the petitioner with the show cause notice at any time prior thereto. Even in the reply to the show cause notice, the petitioner sought a copy of the TAR. Additionally, the personal hearing was also not provided.
4.
The same is totally contrary to the judgment of SBI v. Rajesh Agarwal, (2023) 6 SCC 1.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/01/2026 at 15:21:52
5.
The declaration of a person as fraud has serious consequences and while doing the same, principles of natural justice have to be followed. 6.
For the said reasons, the impugned letter dated 20.12.2025 is quashed. 7.
The respondent No. 1 is at liberty to issue fresh show cause notice and will comply with principles of natural justice and law laid down by the Hon'ble Supreme Court in Rajesh Agarwal (Supra). 8.
The petition is disposed of in aforesaid terms. JASMEET SINGH, J JANUARY 27, 2026/AS The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 29/01/2026 at 15:21:52