Freezing of Bank Account - Investigating Agency Cannot Freeze Bank Account Indefinitely Without Cogent Reason or Intimation to Account Holder
Power to freeze a bank account during investigation must be exercised sparingly and only upon recording reasons demonstrating a live and proximate link between the account and the alleged criminal activity. Blanket freezing without qualifying the amount or period, and without intimating the account holder of reasons, constitutes a colourable and arbitrary exercise of power violating fundamental rights under Articles 21 and 19(1)(g). Only the disputed amount may be kept on hold; freezing beyond that extent is unsustainable. Investigating Agency Cannot Freeze Bank Account Indefinitely Without Cogent Reason or Intimation to Account Holder
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