The Delhi High Court has said that Bank Account Cannot Be Frozen Without FIR or Court Order.
The Delhi High Court said that a bank account is essential for people as they keep their hard-earned money in banks.
The court said that a bank account cannot be frozen without any accusation, FIR, or court order against the account holder.
Justice Purushaindra Kumar Kaurav was hearing a case filed by a person whose bank account in a private bank was frozen in November 2024 after a complaint by the Gujarat Cyber Crime Police. The judge said that freezing a bank account without any valid reason affects a person’s right to life.
The court ordered the bank to immediately unfreeze the account. It said there was no evidence connecting the petitioner to any crime, so freezing the account was completely arbitrary and not valid under the law.
The court also said that since the Gujarat Police could not provide any proper reason, there was no justification for continuing to freeze the account.
The court observed that a bank account is not just a place to keep money, but an important part of a person’s economic life. The judge referred to a quote by Roman philosopher Cicero, saying that the petitioner was under suspicion even though there was no proof or accusation against him.
The court noted that the petitioner’s money was blocked even though there was no FIR, no accusation, and no court order against him. It said that freezing a bank account without justification creates problems in a person’s daily life and affects the right to life.
However, the court also directed the petitioner to cooperate with the authorities if any investigation or inquiry is conducted in the future.
Now-a-days, banks are freezing the accounts of customers on the basis of emails from cyber crime department. The Government should frame strict rules and regulations for freezing of Bank accounts.
