Freezing a bank account without clear justification violates fundamental rights, particularly when the account holder is not an accused in the related crime.

ORDER:

This Writ Petition is filed under Article 226 of Constitution of India with the following prayer for:

“.... may be pleased to pass an appropriate Writ more particularly one in the nature of Writ of Mandamus declaring the action of Respondent No.3 in directing Respondent Nos.4 to 6 to freeze/attach Petitioner’s bank account No.9096002100001433 exercising the powers under Section 106 of the Code of Criminal Procedure, 2023 (BNSS, 2023) under the pretext of a Crime registered in FIR No.316/2024, dated 02.09.2024 on the file of Respondent No.3, eventhough the Petitioner is not at all an Accused to the said Crime and there is no nexus between the Petitioner and the De-facto complainant as arbitrary, illegal, colorable exercise of power, contrary to the well-established legal principles apart from being violative of the Fundamental and Constitutional Rights guaranteed to the Petitioner under Articles 14, 19, 21 and 300- A of the Constitution of India and consequently to direct Respondent No.3 to 6 to de-freeze/detach the petitioners bank account No.9096002100001433. ”

2. When the matter is taken up for hearing, Sri B.Abhay Siddhanth, learned counsel for the Petitioner would submit that the Petitioner is a Company which deals with the business promotions, multi-media brand marketing and brand building and it has business transactions with M/s.Balaji Traders. Learned counsel would further submit that the Petitioner is not an Accused in the alleged Crime No.316 of 2024, which was registered based on the complaint of one Juturu Pradeep for being cheated by one Apollo Global Management for an amount of Rs.2,37,00,000/-. Learned counsel would further submit that the Petitioner has been maintaining the subject account with Respondent Nos.4 to 6 and he has total working capital deposits of Rs.55,78,518.14 p.s., in the said account. Learned counsel would further submit that the alleged amount of Rs.15,04,500/- was paid to the Petitioner by M/s.Balaji Traders for the services provided by the Petitioner and the copy of the tax invoice has also been filed to that effect. Learned counsel would submit that, even if the money was fraudulently transferred to the account of the Petitioner, the tainted amount is of Rs.15,00,000/-. But, Respondent No.3 has directed to freeze the entire amount lying in the current account of the Petitioner, due to which, the Petitioner is unable to carry out its day-to-day activities. Hence, prayed to defreeze the account by keeping a lien over a sum of Rs.15,00,000/-.

3. Sri S.Sarath Kumar, learned Assistant Government Pleader for Home would submit that the Court may pass appropriate orders.

4. Perusal of the material on record does not disclose any case that has been registered against the Petitioner with regard to the present crime. In the case on hand, the suspected money which was deposited in the account of the Petitioner is a sum of Rs.15,00,000/-. Due to the blanket order to freeze the entire account, Respondent Nos.4 to 6-Bank has freezed the account in its entirety. As such, the Petitioner is unable to operate its account and deal with the money lying in its account. Under the guise of investigation, order of freezing the entire account without quantifying the amount and period, cannot be passed and such an order will be construed as violation of fundamental rights of trade and business.

5. Considering the submissions and in view of the facts and circumstances of the case, it is apposite to direct Respondent Nos.4 to 6- Bank to de-freeze the account of the Petitioner and to keep a lien over a sum of Rs.15,00,000/-. However, it is clarified that if there are any other independent freeze orders received by Respondent Nos.4 to 6 unrelating to this incident, they will be at liberty to continue the freeze for such amounts also.

6. With the above directions, this Writ Petition is disposed of. There shall be no order as to costs.

As a sequel thereto, miscellaneous petitions, if any, pending shall stand closed.