The Rajasthan High Court held that freezing a person’s bank account without establishing even a prima facie link between the account and a cognisable offence violates fundamental rights under Articles 21 and 19(1)(g) of the Constitution.
Key Observations
The Court said freezing a bank account without cogent reasons or a clear nexus with the alleged offence is a grave and unwarranted intrusion into fundamental rights.
Such action can cripple a person’s financial autonomy and livelihood, directly affecting the right to life and personal liberty under Article 21 and the right to carry on trade or business under Article 19(1)(g).
The power of investigating agencies to freeze bank accounts is exceptional and must be exercised cautiously and strictly in accordance with law.
Court’s Direction
The High Court directed that only the disputed amount connected with the investigation may remain frozen, while the account holder should be allowed to operate the bank account for all other lawful transactions.
Legal Principle:
A blanket freezing of bank accounts without establishing a prima facie link to a criminal offence is arbitrary and violates constitutional rights to livelihood and trade.
