Punjab and Haryana High Court Orders HDFC Bank to Unfreeze Account Over Rs 5,000 Transaction
The Punjab and Haryana High Court has ruled that freezing a person’s entire bank account only because of a small suspicious transaction is illegal. The Court directed HDFC Bank to reactivate the account of the customer.
The case was heard by a bench of Justice Jagmohan Bansal after a petition was filed by Tripat Jeet Singh. The Court observed that freezing a complete bank account over a suspicious transaction of just Rs 5,000 is not justified. The Court said that if there is no FIR registered against a person and no order from a Magistrate, such action is against the law.
The petitioner informed the Court that his bank account was frozen without any prior notice. The bank had taken this action after noticing a suspicious transaction of Rs 5,000 in the account. However, no criminal case had been registered against him, and he was not accused of any fraud.
During the hearing, the bank stated that it had acted according to instructions from law enforcement agencies. The bank also admitted that it did not have any Magistrate’s order to freeze the account and had no information linking the petitioner to any criminal activity.
The High Court stated that under Section 106 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), a bank account cannot be frozen directly without permission from a Magistrate. The Court said that freezing the entire account of an innocent person without proper grounds is unfair because it affects the person’s daily life and livelihood.
The Court ordered the immediate restoration of the petitioner’s bank account. However, the disputed amount of Rs 5,000 will remain frozen for now and cannot be used. The Court also clarified that if the account holder is found involved in any wrongdoing during future investigations, legal action can be taken according to law. The Court emphasized that the rights of citizens cannot be violated without following proper legal procedures.
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