The Rajasthan High Court has permitted a bank account holder to resume normal transactions, while directing the bank to maintain a freeze only on the sum reportedly linked to an alleged illegal transfer. The order strikes a balance between safeguarding investigative interests and protecting the petitioner’s right to access personal funds.
The petitioner moved the High Court under Article 226 challenging the bank's decision to block the entire account, arguing that the unilateral freeze caused undue hardship despite only a portion of the balance being under suspicion.
The State opposed immediate de-freezing, citing an ongoing police probe and uncertainty regarding the exact sum considered tainted. The dispute centered on whether a complete freeze was justified when only a specific amount was allegedly connected to unlawful receipt.
The Bench noted that investigative needs could be secured without depriving the petitioner of all access to legitimate funds, observing that only the amount in dispute needed to remain untouched. The Court directed the bank to release the remaining balance for regular use and clarified that the investigating agency must promptly specify the exact figure to be earmarked.
The Court stated, “the respondent shall be duty-bound to keep only the disputed amount frozen while allowing transactions from the remaining balance,” and ordered that if the investigating officer fails to respond within seven days of the bank's request, the bank must proceed in terms of the Court's directions.
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