The court established the parameters under which a bank account can be frozen or de-frozen in relation to the Prevention of Money-laundering Act.

JUDGMENT

Dated this the 27^th day of January, 2026

1. This Writ Petition is filed to de-freeze the account of the Petitioner maintained with the Respondent No.2.

2. Learned Standing Counsel for the Respondent No.2 made available the requisition received from the Respondent No.3, in which the requisition refers to the Prevention of Money-laundering Act , 2002, also.

3. The learned Standing Counsel for the Enforcement Directorate representing the Respondent Nos.4 to 6 submitted that without getting the ECIR Number, the Enforcement Director cannot verify whether there is any requisition from the Enforcement Directorate. In the Requisition received by the Bank from the Respondent No.3, which is made available before this Court, a total number of 309 accounts are sought to be frozen. The Petitioner's Account is Serial No.151 therein, which shows that the amount for which the requisition is made is Rs.2,00,000/-. In such case, the Petitioner can be permitted to operate the account, limiting the lien to Rs.2,00,000/-, treating that the Respondent No.3 is the requisitioning authority. If the Respondent No.3 has issued the Communication on the basis of any communication from the Enforcement Directorate, it is for the Respondent No.3 to take necessary action.

4. Therefore, this Writ Petition is disposed of with the following directions:

The Respondent/Bank is directed to confine the order of i)

freeze/lien against the account of the Petitioner only to the extent of the amounts mentioned in the orders/requisitions issued to the Bank by the Police Authorities, and it shall be done forthwith so as to enable the Petitioner to deal with his account and transact therein beyond that limit.

The respondents - Police Authorities concerned are hereby ii)

directed to inform the Bank as to whether freezing/lien of the account of the Petitioner will require to be continued even in the aforesaid manner; and if so, for what further time, within a period of eight months from the date of receipt of a copy of this judgment.

On the Bank receiving the aforesaid information/intimation iii)

from the Police Authorities, the Bank will adhere to it and complete necessary action - either continuing the freeze/lien for such period as mentioned therein; or withdrawing it, as the case may be.

If, however, no information or intimation is received by the iv)

Bank in terms of direction (ii) above, the Petitioner will be at full liberty to approach this Court again; for which purpose, all his contentions in the Writ Petitions are left open and reserved to him, to impel in the future.

The Police Officer concerned shall inform the Bank whether v)

the seizure of the Bank Account has been reported to the jurisdictional Magistrate, and if not, the time limit within which the seizure will be reported. If no intimation as to the compliance or the proposal to comply with Section 102 Cr.P.C. ( Section 106 BNSS) is informed to the Bank within three months of receipt of a copy of the judgment, the Bank shall lift the freeze/lien imposed on the Petitioner's account.

In order to enable the police to comply with the above vi)

direction, the Bank as well as the Petitioner shall forthwith serve a copy of this judgment to the officer concerned and retain proof of such service.

The directions of this Court in this judgment will not stand in vii)

the way of the Bank effecting freezing/lien based on the requisitions communicated in the future to the Bank with respect to the same account of the Petitioner, and in such case, the Petitioner will be at liberty to challenge the same.

The frozen/lien amount, if any, lying in the account of the viii)

Petitioner in accordance with the aforementioned directions, shall be at the disposal of the jurisdictional Magistrate.

Sd/-