Entire bank account cannot be frozen over suspected transaction: Gujarat High Court

The Gujarat High Court has ruled that freezing of an entire bank account without specifying the quantum of suspected amount or without establishing the involvement of the account holder in any criminal activity results in undue hardship and adversely affects the fundamental rights of the citizen

The court ordered the bank to unfreeze the primary savings account of the petitioner keeping a lien on only the disputed amount of ₹1,100.

The petitioner had approached the court after his Gandhinagar-based account was completely debit-frozen by cyber crime authorities following two suspicious credit transactions of ₹500 and ₹600. The petitioner argued that the account was essential for his salary, rent, and day-to-day expenses, and noted that he was neither an accused nor a suspect in the cyber crime investigation.

While acknowledging the investigative powers of law enforcement, the court emphasized that such measures must be reasonable and proportionate. The court observed that freezing of the entire account, including the applicant's salary and lawful deposits, is disproportionate and results in serious prejudice affecting his right to livelihood and dignity guaranteed under Article 21 of the Constitution of India.

The high court permitted full operation of the account outside of the ₹1,100 lien, while directing the petitioner to cooperate with ongoing investigations.