HC: Bank accounts can be frozen without notice

Investigating agencies can freeze bank accounts of accused persons without issuing any prior or simultaneous notice to the person concerned, ruled a full bench of the Bombay high court last week.

Investigating agencies can freeze bank accounts of accused persons without issuing any prior or simultaneous notice to the person concerned, ruled a full bench of the Bombay high court last week.

HT Image

It would be absurd to suggest that a person must be informed that his bank account was being frozen to allow him to close it or have its proceeds withdrawn or transferred, observed the bench comprising justice BH Marlapalle, justice RC Chavan and justice Roshan Dalvi. The full bench was hearing a reference forwarded by justice SA Bobde — whether principles of natural justice require notice to be given to an accused or any third party before or simultaneously attaching his/her bank account.

“Our answer can only be in the negative,” the bench said. It added that Section 102 of the Criminal Procedure Code did not require issuance of notice to a person before or simultaneously with the action of attaching (his) bank account.

The proviso empowers investigating agencies to attach or freeze bank accounts, which may belong to an accused or any other person, and in which proceeds related to any crime has allegedly been deposited.

The bench said that the provision gives the investigating officers the power to preserve a property suspected to have been used in the commission of the offence in any manner. “The property, therefore, requires to be protected from dissemination, depletion or destruction by any mode.”

The bench said that under the guise of being given information about the attachment, no accused, not even a third party, can overreach the law under the umbrella of a sublime provision meant to protect the innocent and preserve his property.

“Giving an opportunity of hearing to the accused before taking action (of attachment) would frustrate the proceeding, obstruct the action, defeat the ends of justice and make the provisions of law relating to investigation lifeless, absurd and self-defeating,” the bench said.