Delhi High Court Orders Unfreezing of Malabar Gold's Bank Accounts Amid Fundamental Rights Violation

The Delhi High Court has ruled against the blanket freezing of bank accounts of Malabar Gold and Diamonds, highlighting it as arbitrary and against fundamental rights. The court ordered the accounts to be defrosted as there was no evidence of the company's complicity in the ongoing investigation.

The Delhi High Court has criticized the indiscriminate freezing of bank accounts belonging to Malabar Gold and Diamonds, deeming it arbitrary and infringing on fundamental rights. Justice Purushaindra Kumar Kaurav highlighted that such actions undermine commercial operations and goodwill, impacting livelihoods and the freedom to conduct business.

The issue arose after a cyber complaint led to the freezing of accounts, despite no allegations against Malabar Gold itself. The court ordered the responsible agencies, including SBI and HDFC Bank, to unfreeze the accounts, emphasizing the lack of any linkage between the petitioners and the alleged fraudulent actions of a customer.

Justice Kaurav noted that absent any complicity, freezing accounts without justification violates constitutional rights and hinders business operations. The court suggested legal recourse only when involvement is established. The ruling underscores the need for discerning and lawful account handling, protecting businesses from undue restrictions.

(With inputs from agencies.)