Delhi High Court Urges Caution in Blanket Freezing of Bank Accounts

The Delhi High Court has advised probe agencies to avoid indiscriminate freezing of bank accounts, urging for more careful and compassionate approaches. A recent case involved a company’s account with over Rs 93 crore, but frozen due to a Rs 200 transaction. The Court suggested marking liens instead and requested a uniform policy from the Ministry of Home Affairs.

The Delhi High Court has issued a directive urging investigative agencies to exercise caution in freezing bank accounts, highlighting the need for careful and compassionate handling of such matters.

The case revolved around a company's account with a large balance, frozen for a small entry, prompting the court to call for alternative methods, like marking a lien, to ease the burden on account holders.

Recognizing the widespread nature of this issue, the court asked the Union Ministry of Home Affairs to develop a uniform policy and guidelines in consultation with states to prevent undue hardship to innocents.