Loan Sanction or Institutional Negligence : Examining the Legal Accountability of Banks in High-value Lending Without Adequate Documentation

Banks play a critical role in economic development by extending credit to businesses. High-value lending, particularly to influential or high-profile borrowers, carries significant financial and systemic risk. Regulatory frameworks mandate strict due diligence and documentation standards to mitigate such risks. However, instances of loan approvals based on inadequate or deficient documentation have raised serious concerns regarding institutional negligence and legal accountability of banks. This research examines whether such practices constitute mere procedural lapses or amount to actionable legal negligence.