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No order or FIR, but bank freezes account over Rs 23 lakh deposit: Allahabad High Court slaps Rs 50k costs

The Indian Express·Ashish Shaji·about 1 month ago
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The petitioner contended that the account was frozen without notice and despite repeated requests, the bank failed to de-freeze it. (Image generated using AI) Allahabad High Court news: The Allahabad High Court recently flagged the increasing menace of indiscriminate freezing of bank accounts while imposing Rs 50,000 costs on a bank for freezing the account of a businessman without there being any complaint after Rs 23 lakh was credited to the account in a single day. A bench of Justices Shekhar B Saraf and Abdhesh Kumar Chaudhary noted that illegal freezing of the bank account amounts to a violation of the fundamental right of the account holder as it directly undermines his right to livelihood, which is an integral part of the right to life guaranteed under Article 21 of the Constitution. Justices Shekhar B Saraf and Abdhesh Kumar Chaudhary said there is no legal provision empowering a bank to freeze an account merely because a transaction appears suspicious.…

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