Karnataka High Court says Bank can’t withhold passport and OCI cards even in case of accused individuals
The Karnataka High Court has recently made a significant ruling regarding the retention of passports and Overseas Citizen of India (OCI) cards by banks in cases involving accused individuals. The court clarified that even if these documents are voluntarily surrendered, banks cannot withhold them indefinitely.
Court’s Judgment
Justice M Nagaprasanna, in the ruling, emphasized that banks lack jurisdiction to retain passports and OCI cards beyond 15 days, even if the accused voluntarily offers them as an undertaking. The court asserted that these documents are the property of the authorities who issued them, and banks must transfer them accordingly.
Background of the Case
The petitioner, a UK citizen holding an OCI card, faced criminal charges after a complaint by the erstwhile Vijaya Bank (now Bank of Baroda). The bank claimed that the petitioner had assured to close two housing loan accounts but failed to do so, leading to instructions for the surrender of the passport.
Petitioner’s Argument
The petitioner argued that the bank lacked the authority to retain the original passport and OCI card. He contended that only the Ministry of External Affairs, under the Foreigners Act, had the prerogative to take necessary actions regarding the OCI card.
Bank’s Response
The bank denied the allegations, stating that the petitioner voluntarily deposited the original passport. However, the court underscored that, since the passport was not issued by any Indian authority, no entity within the country had the jurisdiction to withhold or impound it.
Court’s Observations
The court deemed both the actions of the bank as lacking jurisdiction, emphasizing that even if documents were voluntarily handed over, the bank did not have the authority to keep them. The court highlighted that the bank should have promptly informed the relevant authorities for legal proceedings.
Court’s Decision
Consequently, the court allowed the petition and directed the return of the passport and OCI card to the petitioner after proper verification. Advocate Dilip Kumar represented the petitioner, while Advocates Aditya Singh, Nagaraj Damodar, and Navya Shekhar represented the respondents.
