Bank Account – blanket freezing at the instance of police without qualifying amount and perpetually is illegal
Section 102 of the Cr PC equivalent to Section 106 of the BNSS Act.
In this case, the communication to the Bank indicated that Rs.2,48,835/- was the suspected money involved in the crime of cryptocurrency. The entire account with the balance of Rs.9,69,580/- was freezed. Neither the investigating agency nor the Bank had informed the reasons to freeze the account and period thereof.
Madras High Court held that many citizens are facing the issue of freezing of bank accounts on instruction of local police or National Crime Reporting Portal. The statutes empower the investigating agency to inform the Bank to freeze the account pending investigation and intimate it to the jurisdictional Court. However, there cannot be freezing of account perpetually and without informing the account holders the reasons thereof and to what extent it has been freezed.
Such order will be construed as violation of the fundamental rights of trade and business as well as violation of livelihood.
Order dated 10.9.2024 of the Madras High Court in W.P.No.25631 of 2024 of Mohammed Saifullah Vs. Reserve Bank of India
