JUDGMENT

1. The learned Standing Counsel for the Respondent/Bank, after getting instructions, submitted that the account of the Petitioner is kept as a Mule Account on account of certain suspicious transactions in the account.

2. This Court in Abdul Azeez v. Union of India [2025 KLT OnLine 3447]

considered the question of whether the Bank has the right or authority to freeze the accounts of its account holders on the basis of suspicion with respect to the transactions in the account by itself in the absence of any requisition to do so from a law enforcement agency. This Court held that till the time the RBI comes forward with a Standard Operating Procedure for the Banks to deal with suspicious accounts, the following guidelines are to be followed when the Bank entertains suspicion about the operation of the account.

1. If the Bank is having reason to believe suspicious transactions in the account, the Bank is free to effect a debit freeze of the account without notice to the Account Holder.

2. The Bank shall intimate the freezing of the Account to the Account Holder by sending a Communication with reasons for suspicion by SMS and Registered post on the date of freezing itself. 3. The