Bank account cannot be frozen without FIR or accusation: Delhi HC

The Delhi High Court has ruled that a bank account cannot be frozen in the absence of any FIR, accusation or judicial order against the account holder, observing that such action directly affects an individual’s right to life and economic existence.

Justice Purushaindra Kumar Kaurav made the observation while hearing a petition filed by a man whose account in a private bank had been frozen following a complaint from the Gujarat Cyber Crime Police in November 2024.

Directing the bank to immediately defreeze the account, the court held that there was no material connecting the petitioner to any offence and termed the action “wholly arbitrary and unsustainable in law”.

“In the absence of there being any justification by the Gujarat Police, the continuing seizure of the petitioner’s account was uncalled for,” the court said in its judgement delivered on 4 May.

The court stressed that a bank account was not merely a financial instrument but central to an individual’s day-to-day survival and dignity.

“A bank account is not just a place to keep money but is the very essence of an individual's economic existence,” the court observed.

Quoting Roman philosopher and jurist Cicero, the judge said the petitioner had effectively been left under suspicion despite there being no formal case against him.

“His account is frozen and his money is stuck, but there is no accusation, no FIR, and no judicial order against him,” the court said.

The judgement further noted that freezing a bank account without proper justification inevitably obstructs an individual’s right to life by restricting access to personal funds and financial activity.

At the same time, the court directed the petitioner to cooperate with any investigation or inquiry that may subsequently be conducted by the concerned authorities.

The ruling is expected to have wider implications for cybercrime-related investigations, where bank accounts are often frozen during preliminary inquiries even before formal criminal proceedings are initiated.