The Bombay High Court has issued an interim stay on the effect of circulars issued by the Reserve Bank of India, which empower banks to declare an account as fraudulent without a hearing. The court has granted the stay until September 11, when it will hold hearings on petitions filed by Jet Airways' former owners Naresh Goyal and Anita Goyal, which will challenge the central bank's approach, saying that denying borrowers a chance to be heard violates the principle of natural justice.
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