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SUPREME COURT OF INDIA
SANJAY KAROL, PRASHANT KUMAR MISHRA, JJ.
The State of West Bengal – Appellant
Versus
Anil Kumar Dey – Respondent
Criminal Appeal No. 5373 of 2025 [Arising Out of SLP (Crl.) No. 1003 of 2025]
Decided On : 10-12-2025
(A) Prevention of Corruption Act, 1988 – Section 18A – Criminal Procedure Code, 1973 – Section 102 – Power to freeze bank account of accused person – Powers under Section 18A of PC Act and Section 102, Cr.P.C. are not mutually exclusive – Power of seizure and attachment are separate and distinct, even if effect is same/similar which is, that property is taken into custody by authority, either investigative or judicial – Generally, with setting aside of order of High Court, matter would have ended there, but since investigation has been completed and final report already stands presented in the case, freezing of accounts, of which fixed deposits are a part, may or may not be required – Rights of parties emanating from statute for follow up action, left open to be adjudicated in appropriate proceedings before appropriate court. (Paras 11 and 16)
(B) Precedent – Courts ought not to be expected to follow Judgments and Orders of Supreme Court as binding precedents when facts are not properly disclosed and discussed, for law is not always applicable as black letter of law and is instead applied to facts of each case. (Para 15)
Facts of the case:
The short but significant question that arises in this appeal is whether, when proceedings initiated against a person are only under the provisions of the Prevention of Corruption Act 1988, would it be open for the investigating authorities (police) to freeze the accounts of the accused persons under Section 102 of the Code of Criminal Procedure 1973.
Findings of Court:
Rights of the parties emanating from the statute whether in situation (a) or (b) for follow up action are left open to be adjudicated in appropriate proceedings before the appropriate court.
Result : Appeal allowed.
Certainly. Based on the provided legal document, here are the key points summarized:
Powers to freeze bank accounts of an accused are governed by both Section 18A of the Prevention of Corruption Act (PC Act) and Section 102 of the Criminal Procedure Code (Cr.P.C.), and these powers are not mutually exclusive (!) (!) .
The power under Section 102 of Cr.P.C. allows police officers to seize property suspected to be stolen or connected to an offence, and such seizure must be reported to the Magistrate promptly, with the interpretation of "forthwith" depending on the circumstances (!) (!) .
The procedure for attachment and freezing of property under the PC Act, especially Section 18A, is detailed, sequential, and requires compliance with specific steps, including application, ad-interim attachment, notice, hearing, and final order, ensuring a comprehensive and judicial process (!) (!) .
The powers under Section 18A of the PC Act and Section 102 of Cr.P.C. are distinct, with the former involving a detailed, lawfully prescribed process for attachment and confiscation, and the latter providing a more immediate power of seizure, which must be followed by reporting and judicial review (!) .
The legal interpretation emphasizes that seizure and attachment are separate actions, even if they produce similar effects, and their application depends on the context and statutory provisions involved (!) .
The judgment clarifies that the PC Act is not necessarily a self-contained code in all respects, and the absence of detailed discussion about its interaction with other procedural laws means its provisions should be read in conjunction with general law principles, especially those pertaining to criminal procedure (!) (!) .
The final decision affirms that actions taken under Section 102 Cr.P.C. for seizure are valid when properly reported and within the scope of the law, and that freezing of accounts must adhere to the procedure prescribed under Section 18A of the PC Act. Any deviation, such as freezing without following the statutory process, is subject to judicial review and can be set aside (!) (!) .
The judgment also underscores that the interpretation of procedural terms like "forthwith" should be reasonable and context-dependent, and delays in reporting seizure do not automatically invalidate the action unless unjustified or negligent (!) (!) .
The court highlights that the application of powers under different statutes must follow their specific procedures, and courts should not automatically treat judgments or orders as binding precedents if the facts and disclosures are not adequately discussed or disclosed (!) (!) .
Ultimately, the court allowed the appeal, emphasizing adherence to lawful procedures for freezing bank accounts, and clarified that the powers under the relevant statutes are separate but can be exercised complementarily, ensuring procedural safeguards and judicial oversight (!) .
JUDGMENT :
SANJAY KAROL, J.
1. For ease and clarity, this judgment is divided as follows:
| INDEX |
| QUESTION TO BE CONSIDERED |
| FACTUAL AND LEGAL BACKDROP |
| IMPUGNED JUDGMENT |
| RELEVANT PROVISIONS |
| BRIEF SUBMISSIONS |
| CONSIDERATION |
| CONCLUSION |
Leave granted.
QUESTION TO BE CONSIDERED
2. The short but significant question that arises in this appeal is whether, when proceedings initiated against a person are only under the provisions of the Prevention of Corruption Act 19881 [Hereinafter referred to as ‘PC Act’] would it be open for the investigating authorities (police) to freeze the accounts of the accused persons under Section 102 of the Code of Criminal Procedure 1973.2 [Hereinafter referred to as ‘Cr.P.C.’] In other words, are the powers under Section 18A of the PC Act, which prescribes the application of the Criminal Law Amendment Ordinance, 19443 [Hereinafter referred to as ‘Ordinance’] insofar as the proceedings of attachment are concerned, and the power under Section 102 Cr.P.C. i.e. the power of a police officer to seize certain property, co-existent or mutually exclusive.
FACTUAL AND LEGAL BACKDROP
3. The facts in which the question framed above arises are that:
“…During enquiry, it could be revealed that Sri Prabir Kumar Dey Sarkar S/o Sri Anil Kumar Dey Sarkar residing at GA-130, Rajdanga Main Road, PS-Kasba, Kolkata-700107 had joined as Constable of Police in 1979 and was promoted to the rank of Wireless Operator in the year 1984. Subsequently, he joined as Sub Inspector in the year 1991 and was promoted to the rank of Inspector of Police in the year 2011. During his tenure at different Police Stations, he earned huge illegal money thereby creating enormous movable/immovable properties, channelizing the said illegal money in the name of his relatives which have been found disproportionate to his known sources of income.
He, being a Police Officer (SI in 1991) had drawn net salary for the check period from 2007 to 2017 to the tune of Rs. 40,08,090/- (approximately) and kitchen expenditure for the said check period will be 1-3rd of his Net Salary i.e. Rs. 13,36,030/-. Thus, his likely savings for the said check period could be Rs. 26,72,060/-
But during the enquiry, available documents revealed that the total movable/immovable properties acquired by Sri Prabir Kumar Dey Sarkar in his name as well as in the name of his relatives, together with the expenditure incurred during the said check period, comes around Rs. 1,49,18,628/- [One Crore Forty-enine lakh eighteen thousand six hundred & twenty-eight]. The said amount of Rs. 1,49,18,628/- comprises:
(a) construction cost, labour cost and KMC fees of building (G+3) OF GA-130, Rajdanga Main Road, (b) liquid cash seized from the premises of GA-130, Rajdanga Main Road, (c) value of gold ornaments seized from the residence of P.K. Dey Sarkar at GA-130, Rajdanga Main Road, (d) cost of a Flat at P.Majumdar Road, (e) landed properly at Chak Kalar Khal measuring abut four cottahs, (f) premium for LICI and (g) fees paid to the Heritage School for his daughter.
During calculation the valuation of:
(i) the five storied building at BF-11, Rajdanga Main Road, (ii) three storied building at GA-97, Rajdanga Main Road, (iii) GB-50, Rajdanga Main Road have not been taken into consideration which may further compound the valuation of the total assets.
Considering his income, expenditure, likely savings, Sri Prabir Kumar Dey Sarkar prima- facie, has possessed huge assets disproportionate
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