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IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR
JUSTICE DINESH MEHTA, J
Shree Radhe Enterprises, through its proprietor – Appellant
Versus
Reserve Bank of India – Respondent
ORDER :
Dinesh Mehta, J.
I.A. No.01/2025 in S.B. Civil Writ Petition No.6556/2025:-
1. For the reasons stated, the application (I.A. No.01/2025) seeking amendment in the cause title, is allowed.
2. Amended cause title filed along with the present application is taken on record.
3. The petitioners have approached this Court with a grievance that in spite of the fact that they have not been found involved in fraudulent transactions; any illegal activities or a Cyber crime, the respondent-Banks have frozen their bank account(s) without any intimation/prior notice.
4. Mr. Deepak Vyas and Mr. Arpit Mehta and other counsel appearing on behalf of the respondent-Banks submitted that the bank account(s) of these petitioners have been freezed and transactions therein have been stopped in light of the instructions/ directions which they have received from various Investigating Officer(s) and agencies from all parts of the country.
5. Mr. Vyas submitted that notices under section 102 of the Code of Criminal Procedure, 1973 (in short ‘Code of 1973’) (section 106 of the Bharatiya Nagarik Suraksha Sanhita, 2023 ) have been received by the respondent-Banks and since the bank account(s) fall within the ph
Freezing bank accounts without direct nexus to alleged offences violates the fundamental right to carry on business under Article 19(1)(g) of the Constitution.
Freezing an entire bank account without evidence linking the account holder to a crime violates the right to livelihood; only specific amounts should be frozen with proper justification.
An investigating agency cannot debit freeze a bank account without a Magistrate's order, as per Section 106 of the Banking Regulation Act.
The court established that freezing a bank account in a cyber crime investigation must specify the amount involved and comply with procedural requirements; otherwise, such an action is illegal.
Freezing of bank accounts must follow due process, ensuring transparency and protection of individuals' financial rights, especially during investigations.
Freezing bank accounts entirely without quantifying disputed amounts violates fundamental rights; only disputed amounts should remain on hold.
Banks cannot freeze accounts solely on suspicion without compliance with statutory guidelines and requisitions from law enforcement, as it infringes property rights under Article 300A.
Un-freezing of account - Notice quashed - Unless and until there is a strong suspicion against the petitioners, police would not be justified in freezing account belonging to petitioners. For, such f....
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