New Delhi, May 21 -- The Supreme Court of India has observed that banks are often casual while sanctioning large loans to big companies, but impose far stricter scrutiny on ordinary borrowers, in some cases leading to 'borderline harassment'.

The observations were made by a bench comprising Justice Ahsanuddin Amanullah and Justice R. Mahadevan while hearing a plea filed by Bhaskar International Private Limited against recovery proceedings initiated by the State Bank of India (SBI).

Apex Court Questions SBI's Due Diligence

The case related to a loan of Rs 8.09 crore sanctioned by SBI to the company in 2019. According to the court, the borrower defaulted on the very first installment and failed to repay the dues for six years, after whic...