Police Can Order Bank Account Freeze If Suspicious Dealings Found In Probe, Party Can Approach Magistrate For Relief: Allahabad High Court

The Allahabad High Court has held that police can direct freeze of bank accounts if it finds suspicious transactions during investigation and the affected party has the remedy to approach the Magistrate concerned for defreezing of account after investigation is concluded.Referring to the judgment of the Apex Court in Teesta Atul Setalvad vs. The State of Gujarat (2018), a division bench of Justice Ajit Kumar and Justice Swarupama Chaturvedi held:“in the event police comes to conclude that during investigation a bank account is to be freezed for suspicious transaction, it can always direct the bank to freeze such bank account. And of course, such freezing of the account shall depend upon the outcome of investigation. The affected party can of course, seek remedy from the Magistrate concerned after the investigation is concluded and if chargesheet is filed, to limit freezing of account to the extent of money involved.”The petitioner argued that she is employed as a Shikshamitra (Teacher) at Prathmik Vidyalaya, Sakhadha, Block Mooratganj, District Kaushambi. Her salary is credited into her account. However, her bank account was frozen by the bank at the direction of Anand Cyber Crime Branch, Gujarat Police for transaction of Rs. 35,000/- which was transferred by one Mustaq Ali into her account.Petitioner submitted that despite representations, her account was not being de-freezed. Accordingly, she approached the writ court seeking a direction upon the bank to de-freeze her account. In Teesta Atul Setalvad vs. The State of Gujarat, the Supreme Court had held: “25. Suffice it to observe that as the Investigating Officer was in possession of materials pointing out circumstances which create suspicion of the commission of an offence, in particular, the one under investigation and he having exercised powers Under Section 102 of the Code, which he could, in law, therefore, could legitimately seize the bank accounts of the Appellants after following the procedure prescribed in Sub-section (2) and Sub-section (3) of the same provision. As aforementioned, ...and thus complied with the requirement of Sub-section (3).”Holding that the police can freeze bank accounts, the Court referred to Section 106 BNSS (erstwhile Section 102 CrPC) to observe that there was no obligation on the police to take prior sanction from the Magistrate for seizing properties of the accused person during investigation. It was only obligated to report such seizure to the Magistrate. Dismissing the writ petition, the Court held that the petitioner had the remedy to approach the investigating authorities or court of competent jurisdiction for de-freezing her account. Case Title: Marufa Begum v. Union Of India And 5 Others [WRIT - C No. - 37053 of 2025]Click Here To Read/Download Order

Police Can Order Bank Account Freeze If Suspicious Dealings Found In Probe, Party Can Approach Magistrate For Relief: Allahabad High Court

Upasna Agrawal

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