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Mumbai Court Lifts Freeze on Rhea Chakraborty's Bank Account: Procedural Safeguard Trumps Drug Probe Concerns
In a procedural victory for Bollywood actor Rhea Chakraborty and her mother Sandhya, a has ordered the defreezing of their ICICI Bank account, citing the 's (NCB) failure to secure mandatory confirmation under the NDPS Act. Delivered by Additional Sessions Judge U.C. Deshmukh on , the ruling underscores strict adherence to legal timelines in asset freezes during narcotics investigations.
Roots in a Celebrity Tragedy: The Sushant Singh Rajput Probe
The order stems from Special NDPS Case No. 344 of 2021, tied to the NCB's probe into alleged drug consumption and procurement in Bollywood following actor Sushant Singh Rajput's death on . Rajput was found hanging in his Mumbai apartment, sparking investigations that led to Rhea Chakraborty's arrest in . She received bail from the in October that year.
During the inquiry, the NCB froze several family bank accounts, including ICICI account No. 120001500538 held by Sandhya and Rhea Chakraborty. Reports indicate this was among multiple accounts targeted across banks like Axis and Kotak, with some previously unfrozen in earlier proceedings. The applicants, represented by advocates and , filed Exhibit 782 to challenge the freeze on grounds of non-compliance with NDPS safeguards.
Clash in Court: Syndicate Links vs. Statutory Mandates
Rhea and Sandhya argued the freeze violated , which empowers officers to provisionally seize or freeze property suspected as illegally acquired but requires confirmation by a "" within 30 days for the order to endure. Absent this, they contended, the action was unlawful, invoking constitutional property rights.
The prosecution, via Additional Public Prosecutor
, pushed back fiercely. Citing Rhea's statements, they portrayed her as an
"active member of drug syndicate"
with contacts to peddlers, justifying the investigating officer's satisfaction in freezing assets to prevent frustration of forfeiture proceedings.
Judicial Balance: Precedent and Plain Reading of the Law
Judge Deshmukh sided with the applicants, drawing heavily from the 's ruling in . That decision stressed that Section 68F powers are not "," mandating in illegal acquisition, notification to the , and timely confirmation to justify property deprivation.
The court noted no dispute over the initial freeze but highlighted the NCB's admission of non-compliance:
"The respondent does not deny that there is no compliance of
. There is no order as contemplated to be passed under such provisions of Act."
Echoing the High Court, it affirmed that unconfirmed orders lapse, protecting against arbitrary interference.
Key Observations from the Bench
-
On High Court Guidance :
"The approach of the Court in construing the aforesaid provisions ought to be in consonance with the constitutional recognition of the right to property... Sub-Section (2) of Section 68F envisages further control over the exercise of such power, by vesting in the power to confirm such order and upon non-confirmation thereof, within a period of 30 days, render such order ."
-
Statutory Clarity :
"Sub-section (2) of the Section 68F of the Act provides that an order of freezing or seizing the property shall have no effect unless such order is confirmed by an order of the within period of 30 days of its being made."
-
No Denials from NCB :
"There is no dispute that subject matter of the bank account has been freeze by the Officer of the respondent. The respondent does not deny that there is no compliance..."
Unfrozen Funds and Broader Ripples
The application stands allowed. The court directed:
"(ii) Account no. 120001500538 with ICICI Bank be defreeze. (iii) Applicants or the accounts holder of the bank account are hereby permitted to operate the said bank account as per rules and regulation of ."
This relief allows normal operations under norms, potentially extending to similar family accounts in ongoing NDPS scrutiny. It signals to enforcement agencies that procedural rigor is non-negotiable, even in high-stakes drug syndicates probes, possibly influencing future Bollywood-linked investigations amid the NCB's wider entertainment industry dragnet.
