Court Affirms Violation of Fundamental Rights Under Articles 21 and 19(1)(g) Due to Unlawful Account Freezing
In a significant ruling, the Rajasthan High Court has directed the immediate de-freezing of a bank account belonging to Vinit Kumar Adiwal, citing unwarranted intrusion into fundamental rights as guaranteed under Articles 21 and 19(1)(g) of the Indian Constitution. The judgment was delivered by Justice Farjand Ali in response to a petition filed under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023.
The case involved the freezing of Adiwal's bank account at UCO Bank's Nagori Garden Branch in Bhilwara, based on allegations of fraudulent transactions. However, the court found that the account had been frozen without establishing a cogent reason or a prima facie nexus to any cognizable offence, thereby violating the petitioner's right to life, personal liberty, and the freedom to carry on trade and business.
Justice Ali emphasized that the power to freeze bank accounts should be exercised sparingly and only under strict legal compliance, with recorded reasons indicating a direct link between the account and alleged criminal activity. The court noted that the entire account was frozen despite only a certain amount being in dispute, which was deemed a violation of the petitioner's fundamental rights.
The judgment mandates that only the disputed amount remains frozen, while allowing the petitioner to operate the account for all lawful transactions. The court directed the Superintendent of Police to communicate the order to the concerned bank branch for immediate action.
This ruling underscores the judiciary's role in safeguarding individual rights against arbitrary state actions and sets a precedent for handling similar cases involving the freezing of bank accounts.
Bottom Line:
Freezing of a bank account without cogent reasons and prima facie nexus with criminal activity constitutes unwarranted intrusion into fundamental rights under Articles 21 and 19(1)(g) of the Constitution of India.
Statutory provision(s): Bharatiya Nagarik Suraksha Sanhita, 2023 Section 528; Articles 21 and 19(1)(g) of the Constitution of India
Vinit Kumar Adiwal v. State of Rajasthan, (Rajasthan) : Law Finder Doc id # 2863932
