M/S Yajo Technologies Pvt Ltd vs The State Of Chhattisgarh on 30 July, 2026

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    Chattisgarh High Court

    M/S Yajo Technologies Pvt Ltd vs The State Of Chhattisgarh on 30 July, 2026

    Author: Ramesh Sinha

    Bench: Ramesh Sinha

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                                 CGHC010256782026                                    2026:CGHC:32825-DB
                                                                                                  NAFR
    
                                              HIGH COURT OF CHHATTISGARH AT BILASPUR
    
    
    
                                                            WPCR No. 389 of 2026
    
    
                                 M/s Yajo Technologies Pvt Ltd. Having Its Registered Office At Supreme Work
                                 Coworking, Eros City Square Mall, Gurgaon, Haryana - 122018, Through Its
                                 Director Mr. Jijo K.G. Aged About 35 Years S/o Geroge R/o Door No. Ff 16 C
                                 Block, Rr Kaliru, Nanjundapuram Road, Tamil Nadu 641036, Presently At G-
                                 82, Pocket-I, Block-G, Dilshad Colony, Delhi 110095
                                                                                               ... Petitioner(s)
    
                                                                    versus
    
                                 1 - The State Of Chhattisgarh Through Its Secretary, Department Of Home,
                                 Mantralaya, Mahanadi Bhawan, Naya Raipur, Atal Nagar, District Raipur
                                 Chhattisgarh
    
                                 2 - Superintendent Of Police District North Bastar Kanker, Office Of The
                                 Superintendent Of Police, Kanker, District North Bastar Kanker, Chhattisgarh
    
                                 3 - Station House Officer Police Station Kanker/ Cyber Cell, Kanker, District
                                 North Bastar Kanker, Chhattisgarh
    
                                 4 - I D F C First Bank Limited Through Its Branch Manager Unit No. 23-24,
                                 Ground Floor, D L F Cross Point, Phase 4, Nearby Galleria Market, D L F
                                 City, Gurugram, Haryana, 122102
    
                                 5 - Federal Bank Limited Through Its Branch Manager, Office At 21 Variety
                                 Hall Road, Coimbatore, Tamil Nadu 641001
                                                                                       ... Respondent(s)

    (Cause-title taken from Case Information System)

    For Petitioner(s) : Mr. Deepak Prakash, Advocate through V.C.
    along with Ms. Anamika Jain, Advocate.

    SPONSORED

    For Respondent(s) : Mr. Ashish Shukla, Additional Advocate General.
    2

    Hon’ble Shri Ramesh Sinha, Chief Justice
    Hon’ble Shri Ravindra Kumar Agrawal, Judge
    Order on Board
    Per Ramesh Sinha, Chief Justice
    30/07/2026

    1. Heard Mr. Deepak Prakash, learned counsel appearing for the

    petitioner, through video conferencing, along with Ms. Anamika Jain. Also

    heard Mr. Ashish Shukla, learned Additional Advocate General, appearing for

    the respondent/State.

    2. By way of this writ petition, the petitioner has prayed the following

    reliefs::

    “10.1. Issue a Writ in the nature of Certiorari or any
    other appropriate Writ, Order or Direction, calling for
    records including the complaint, FIR, seizure memo,
    Magistrate’s order under Sections 106 and/or 107 of
    BNSS, or any other communication/order forming the
    basis of freezing/debit restriction of the Petitioner’s
    bank accounts; and/or

    10.2. Issue a Writ in the nature of Mandamus or any
    other appropriate Writ, Order or Direction, directing the
    Respondent authorities and the concerned banks to
    forthwith defreeze the Petitioner’s bank accounts
    bearing IDFC First Bank Account No. 89150406008
    and Federal Bank Account No. 10920200050513;
    and/or

    10.3. Issue a Writ in the nature of Mandamus or any
    other appropriate writ, order or direction restraining the
    Respondent authorities and the concerned banks from
    imposing any blanket debit freeze/restriction on the
    Petitioner’s bank accounts without disclosing the
    specific transaction, quantified amount, material relied
    upon and order of the competent authority/court
    3

    authorising such freezing; and/or.”

    3. The petitioner is a company incorporated under the provisions of the

    Companies Act, 2013 and is engaged in the business of digital payments,

    payout facilitation and allied payment aggregation support services for

    merchants and businesses operating within the digital payments ecosystem.

    The petitioner maintains, inter alia, its business accounts bearing Account No.

    89150406008 with IDFC First Bank and Account No. 10920200050513 with

    Federal Bank for its day-to-day business operations, merchant settlements

    and allied transactional services. The petitioner came to know that its IDFC

    First Bank account had been frozen pursuant to communication dated

    06.05.2026 issued by the Cyber Cell, Kanker, in connection with Crime No.

    146/2026, directing the Bank to furnish transaction details and to immediately

    freeze the account. The petitioner also received an e-mail dated 30.04.2026

    from the Federal Bank informing that debit transactions in its account had

    been restricted. Upon seeking clarification by e-mail dated 11.05.2026, the

    Federal Bank, by its reply dated 16.05.2026, informed the petitioner that the

    account had been debit-frozen pursuant to the directions issued through the

    National Cyber Crime Reporting Portal (NCCRP) and advised the petitioner

    to approach the Chhattisgarh Police authorities for issuance of revised

    instructions for removal of the freeze. Thereafter, on 26.05.2026, the

    petitioner submitted a detailed representation through e-mail to the

    Superintendent of Police, District North Bastar, Kanker, with a copy to the

    Station House Officer, Cyber Cell, Kanker, requesting de-freezing of both the

    bank accounts and seeking copies of the complaint, FIR, freezing

    communications, NCCRP directions and other relevant documents forming

    the basis of the freezing action. However, despite the said representation and

    the lapse of considerable time, no action has been taken by the respondent
    4

    authorities, nor has any response or relevant material been furnished to the

    petitioner, compelling it to invoke the extraordinary writ jurisdiction of this

    Court.

    4. Due to the continued freezing/debit restriction of its business bank

    accounts, the petitioner has been deprived of access to its lawful business

    funds, thereby seriously affecting its day-to-day business operations. The

    petitioner is engaged in the business of digital payments, payout facilitation

    and allied transactional services, and the frozen accounts are essential for

    merchant settlements, payouts and other legitimate business transactions. As

    a consequence of the freezing of the aforesaid accounts, the petitioner has

    been prevented from carrying on its regular business activities, resulting in

    severe financial hardship and disruption of its commercial operations. Despite

    its willingness to cooperate with the investigation and furnish all necessary

    documents, transaction records, merchant details and other information as

    may be required by the investigating agency, the respondent authorities have

    neither disclosed the material forming the basis of the freezing action nor

    removed the debit restrictions. The continued blanket freezing of the

    petitioner’s business accounts, without disclosure of any specific transaction

    or quantified amount allegedly involved, has caused grave prejudice to the

    petitioner’s lawful business and has adversely affected its ability to honour its

    financial commitments and obligations in the ordinary course of business.

    5. The action of the respondent authorities in freezing/debit restricting the

    petitioner’s business bank accounts has been taken without furnishing any

    specific complaint, transaction-wise particulars, beneficiary details, quantified

    amount, seizure memo, or any order of the competent Magistrate under

    Sections 106 and/or 107 of the Bharatiya Nagarik Suraksha Sanhita, 2023

    (BNSS). Although Crime No. 146/2026 has been registered by the Cyber
    5

    Cell, Kanker, the petitioner submits that no material has been supplied

    indicating its involvement in any unlawful betting, gambling, fraudulent or

    other illegal activity. Even assuming, without admitting, that certain

    transactions are under investigation, the respondent authorities ought not to

    have imposed a blanket debit freeze on the petitioner’s entire business

    accounts. At the highest, only the specific amount allegedly connected with

    the investigation, if any, could have been secured by placing an appropriate

    lien or limited restriction. The continued freezing of the petitioner’s entire

    business accounts, without disclosing the specific transactions or the

    quantified amount allegedly involved and without following the procedure

    prescribed under law, is wholly disproportionate, arbitrary, violative of the

    principles of natural justice, and infringes the petitioner’s rights guaranteed

    under Articles 14, 19(1)(g) and 21 of the Constitution of India.

    6. The impugned action of the respondent authorities has deprived the

    petitioner of access to its legitimate business funds and has caused serious

    disruption to its lawful commercial activities. The continued freezing/debit

    restriction of the petitioner’s business bank accounts has paralysed its day-to-

    day operations, including merchant settlements, payouts and other legitimate

    financial transactions, thereby causing grave financial prejudice. The blanket

    freezing of the entire business accounts, without disclosing any specific

    transaction, quantified amount or material linking the petitioner with the

    alleged offence, and without adherence to the procedure prescribed under

    the Bharatiya Nagarik Suraksha Sanhita, 2023, is arbitrary, unreasonable and

    disproportionate. The impugned action, therefore, amounts to an unwarranted

    interference with the petitioner’s right to carry on its lawful business and is

    violative of the fundamental rights guaranteed under Articles 14, 19(1)(g) and

    21 of the Constitution of India.

    6

    7. This Court, vide order dated 27.07.2026, directed the concerned

    Superintendent of Police to file his personal affidavit in the matter. In

    compliance with the said direction, the Superintendent of Police, District

    North Bastar Kanker (C.G.), has filed his personal affidavit on 29.07.2026,

    which reads as under:

    “2. That the petitioner has preferred the captioned writ
    petition praying for a direction to the respondent
    authorities and the banks forthwith defreeze the
    petitioner’s bank accounts bearing IDFC Bank First to
    Account No. 89150406008 and Federal Bank Account
    No. 10920200050513 and to restrain the respondent
    authorities and the concerned banks from imposing any
    blanket debit freeze/restriction on the petitioner’s bank
    accounts without disclosing the specific transaction,
    quantified amount,material relied upon and order of the
    competent authority/Court authorizing such freezing.

    3. That, the Government of India, Ministry of Home
    Affairs, has created a Cyber Crime Reporting Portal to
    prevent cyber crime in India in which, the victims of
    cyber crime report online by giving details of the cyber
    fraud committed with them and by filling the information
    of mobile numbers and bank accounts used in cyber
    fraud.

    4. That, the brief description of the case is that, the
    Ministry of Home Affairs, Government of India has
    established a Cyber Crime Reporting Portal to prevent
    cyber crime in India. Victims of cyber crime can report
    online by detailing their cyber fraud, including the mobile
    number and bank account used in the fraud. These are
    the bank accounts used by cyber crime offenders to
    launder fraud proceeds.

    5. That on 25.04.2026, while the police party is on
    patrolling nearby the city along with the staff for crime
    7

    investigation, information was received from an informer
    that at Pappu Dhaba, Aaturgaon, that some people were
    earning money by sitting on the roadside in Aaturgaon
    Nakapara, playing online betting through mobile phones
    and making illegal transactions by providing IDs. While
    reaching the site the police party summoned notice to
    Naveen Hiradhar and Mohd Iqbal who were present
    near Pappu Dhaba, Kanker to verify the information.

    After summoning Iqbal Khan and serving him
    noticeunder section 179 BNSS and informing him about
    the information given by the informant, on reaching the
    place mentioned by the informant, Aaturgaon Nakapara,
    some people were seen in suspicious condition on the
    side of the main road, whom they were surrounded and
    after conducting a raid, the accused persons namely 1.
    Oshin Baghmare S/o. Praveen Baghmare age 25 years;

    2. Aman Kumar Rai S/o. Ajay Rai; 3. M Sandeep Kumar
    S/o. late M Shankar; 4. Saurabh Singh S/o. Ajay Singh
    were found who were making people play online
    gambling and betting by providing facility to make ID to
    people on MJ BOOK and MDVH BOOK sites
    batbhai9.com, cricbet9.com swiftbetz.com. They were
    served notice under section 94 of the BNSS on the spot
    to produce valid documents/license regarding online
    betting through mobile. They told in writing that they do
    not have any valid documents in this regard. Redmi
    Note 13 5C mobile with mobile no. 7070739292 and
    Redmi Note 9 Pro Max mobile without SIM and one
    more One Plus mobile were recovered from the
    possession of accused Oshin Badhamre. Poco M7
    mobile with mobile no. 8839595874 and Oppo mobile
    without SIM and cash amount of Rs. 4000/-, Motorola G
    06 mobile with mobile no. 6263637716 and 02 other
    mobiles were recovered from the possession of accused
    M. Sandeep Kumar and an iPhone 13 mobile with
    mobile no. 6232714602 and iPhone 15 Pro broken
    8

    mobile with mobile no. 9304866892 were recovered
    from the possession of accused Saurabh Singh, total
    value of all the mobiles was Rs. 1,15,000/- in the
    presence of witnesses Naveen Hirachar and Mohd. As
    per the evidence given by Iqbal, the seizure memo was
    prepared and the articles used in the crime were seized
    and taken into police custody. The accused Oshin
    Baghmare, Aman Kumar Rai, M Sandeep Kumar,
    Saurabh Singh were found to have committed the crime
    FIR has been registered at Crime No. 146/2026 before
    Police Station Kanker District North Bastar Kanker (CG)
    for the offences punishable under Section 111(2)B.
    111(4) of BNS and section 7, 8 of the Chhattisgarh
    Gambling Prohibition Act, 2022 and section 66 D of the
    Information Technology Act, 2000 against the accused
    persons. They were duly informed about the reasons for
    their arrest on the spot and the arrest memo was issued
    to them on 26.04.2026 at 00:10 hrs, 00:20 hrs, 00:30 hrs
    and 00:40 hrs respectively and their families were
    informed about the arrest.

    6. The accused Aman Kumar Rai and Saurabh Singh
    were produced before the Magistrate on 26.04.2026 and
    from where they were sent to jail on judicial remand. On
    the basis of memorandum statement of other accused
    Osin Baghmare and M. Sandeep Kumar, after detailed
    interrogation of absconding accused Kshitij Hirwani and
    Vinay Yadav and other accused involved in the case, it
    was found that they were working in an organized
    manner for onlinebetting. On observation of the seized
    mobile phones, the bank accounts used for illegal
    transactions of online betting have been put on hold.

    7. On 10.04.2026, on the mobile observation of
    Chhatrapal alias Kshitij Hirwani, the main accused Vinay
    Yadav and the accused involved in online betting
    deposited Rs. 99,000/- and Rs. 1,00,000/- on
    9

    13.04.2026 in IDFC First Bank Account No.
    89150406008 and Federal Bank Account
    1092020050513 No. of YAJO technologies Private
    Limited a total of Rs. 1,99,000/- in cash. On receiving
    the statement of IDFC First Bank Account of petitioner
    YAJO technologies further Private Limited in
    investigation, it was found that the said bank account
    was continuously deposited at different places. On
    perusal of the bank statement, it was found that cash
    was deposited and lakhs of rupees were withdrawn. The
    arrested accused in the case had stated that the online
    betting withdrawn amount deposited was and
    simultaneously from different places on a daily basis.
    Rupees were transacted from both accounts of IDFC
    First Bank and Federal Bank. Suspicious amount trail
    was found in Account No. 89150406008 and No.
    1092020050513. In the course of investigation, a notice
    under Section 94 BNSS was sent to M/s. Yajo
    Technologies Pvt. Ltd on 14.05.2026 to present its side,
    but due to non-receipt of factual reply regarding the
    transactions in the concerned bank accounts, the
    accounts debit of M/s. Yajo Technologies Pvt. Ltd. has
    been frozen. The bank accounts are lien/frozen after the
    company provides factual information regarding
    suspicious transactions in the bank accounts. It is
    respectfully submitted that in the present case
    investigation is going on in respect to the absconding
    accusing persons namely Vinay Yadav and Kshitij alias
    Kshatrapal Hirwani and others in the case. The
    necessary report regarding the involvement of petitioner
    Wykit Software Solutions Private Limited in the case is
    also prima facie made out.

    8. That, during the investigation conducted so far, it has
    been revealed that the accused persons in connivance
    with the other co-accused persons had committed the
    10

    crime of online betting and have done various
    transactions in the accounts maintained by the petitioner
    and by such fraudulent means and the aforesaid amount
    has been dishonestly transacted and credited by the
    accused persons. It is further revealed that, the accused
    persons are the instrumental in the use of the aforesaid
    bank account number and thereby deceived innocent
    persons/people to part with their money, which was
    subsequently misappropriated.

    9. That, during the course of investigation, it was
    revealed that, the accused persons are the member of
    an organized crime of online betting and gambling and
    had used the accounts of the petitioner for the money
    collected during theonline betting and gambling and the
    accused persons formed criminal syndicate and
    operated within the framework of this criminal
    organization, which demonstrates their criminal
    tendencies, their connections to organized gangs and
    their tendency to commit crimes repeatedly.

    10. It is most humbly submitted that in the present case,
    the bank account of the petitioner, namely M/s. Yajo
    Technologies Pvt. Ltd, was be circulated within the
    directly found WhatsApp groups operated by the
    accused persons. Clear and explicit instructions were
    disseminated in the said groups directing the depositors
    to remit the money received from illegal online gambling
    directly into this specific account. Thus, it is firmly
    established that the petitioner is a direct repository of
    the proceeds of crime and an active link in the illicit
    transactions. Consequently, cannot claim the defense of
    being a bonafide third party, as might have been the
    position in older, distinguishable cases relied upon by
    them.

    11. It is pertinent to mention that a complete debit freeze
    of the subject account was an absolute necessity to
    11

    prevent the immediate withdrawal and siphoning off of
    the funds. In the investigation of cases involving online
    gambling, it has been consistently observed that within
    minutes of a police raid or the apprehension of an
    accused, the funds are swiftly withdrawn or transferred
    out of the accounts. If the debit freeze had not been
    strictly imposed, the entireproceeds of crime would have
    been dissipated. leaving no assets available for
    subsequent attachment or forfeiture under Section 107
    of the the immediate relevant statute. Therefore,
    preventive action was legally justified to preserve the
    corpus of the illegal earnings.

    12. It is further submitted before this Hon’ble High Court
    that the syndicates orchestrating such illegal online
    gambling networks function through highly sophisticated
    and clandestine methods. These bank accounts are
    typically operated from remote and undisclosed
    locations, and the ill-gotten money is rapidly transferred
    through multiple layers of accounts to obscure the
    money trail and evade law enforcement. Permitting the
    unrestricted operation of the petitioner’s account at this
    crucial juncture would have irreversibly frustrated the
    ongoing investigation and allowed the perpetrators to
    successfully launder the illicit wealth.

    13. It is respectfully submitted that the investigating
    agency is actively and rigorously investigating the entire
    money trail to unearth the broader network. However, to
    ensure fairness and uphold the principles of natural
    justice, the State is willing to modify the complete freeze
    to a lien mark limited strictly to the disputed amount.
    This is entirely contingent upon the petitioner company
    providing its complete, authenticated balance sheets
    and financial records to the investigating officer. This is
    required to clearly differentiate and segregate the illicit
    gambling proceeds from the alleged legitimate business
    12

    earnings of the company. Until such financial
    transparency is provided by the petitioner, the current
    restriction on the account is lawful, proportionate, and
    necessary in the interest of justice.”

    8. In the case of Neelkanth Pharma Logistics Pvt. Ltd. v. Union of

    India, reported in 2025 SCC OnLine Del 1055, it was held as follows:

    “12. Here, instead of directing preservation of disputed
    amount, which was mere Rs. 200/-, the bank was
    directed to freeze the entire account. Such action of
    freezing the account, in its entirety, has, reportedly, left
    the petitioner high and dry. It has led to significant
    adverse financial consequences, including dishonouring
    of several cheques issued by the petitioner and the
    complete disruption of its business operations.

    13. While dealing with a petition involving a similar issue
    which happened with a street-vendor, this Court had
    made following observation in Pawan Kumar Rai v.
    Union of India
    , 2024 SCC OnLine Del 8936:

    25, Indubitably, passing of an order of freezing the
    entire bank account of the petitioner has a serious
    and adverse implication and invades and
    encroaches upon his invaluable right to earn and
    live with dignity. The impugned action, in essence,
    amounts to a violation of fundamental right of the
    petitioner, as it directly undermines his right to
    livelihood, which is integral part of the Right to Life
    guaranteed under Article 21 of the Constitution.
    26,. Furthermore, when the Investigating Agency
    has identified a specific sum credited to the bank
    account of the petitioner, it is difficult to
    comprehend as to why the entire bank account of
    petitioner has been freezed.

    27. Thus, the continued freezing of the entire bank
    account of the petitioner, without even hinting that
    the petitioner was either mastermind or accomplice
    13

    in the cybercrime or knowingly received the funds
    as part of any illegal activity will not be justifiable
    and sustainable, at the moment.”

    14. Investigating Agency is fully empowered to conduct
    investigation, and can also, under appropriate
    circumstances, send request to the concerned bank,
    directing freezing of the entire account.

    15. However, when it resorts to above, it must assign
    reasons.

    16.Such discretion vests with investigating agency, its
    better left to them to decide as to when such blanket
    freezing needs to be ordered. However, once it chooses
    to do so, it must offer some justification. Such blanket
    measure, if taken recourse to, without offering any
    reason, can certainly play havoc with the financial
    concerns of such account holders. In relation to small-
    time vendors, it can disrupt prospects of their mere
    existence, even. It is not difficult to imagine that any
    such action can put their lives in a complete disarray.

    17. Therefore, possibility of marking a lien on disputed
    amount, whenever it is identifiable, should be explored
    as a more appropriate interim measure. Ideally, it should
    be the first and foremost option. This would, naturally,
    mitigate the undue hardship being caused on account of
    blanket freezing of account and would also ensure that
    the alleged cheated money remains secured and intact.

    18. It is pertinent to highlight that while dealing with a
    batch of petitions involving a similar issue, Kerala High
    Court in Dr. Sajir v. Reserve Bank of India, 2023 SCC
    OnLine Ker 9087 also made observation which reads as
    under:–

    “11. In the afore perspective, when the
    requisitions in these cases-by various Police
    Authorities in several States of India mention the
    exact amount suspected to have been credited to
    the accounts of the petitioners herein, one fails to
    14

    fathom why their bank accounts in full, should
    remain frozen. This is more so because, even
    when the sums in question may have found credit
    in the accounts of the petitioners, unless the
    investigation eventually reveals that they were
    complicit in the Cyber Crime, or had received the
    same being aware of it, they could never be
    construed to be accused.”

    12. In fact, should the criminal enquiry found
    otherwise, it will be doubtful if the amounts in
    question could be even recovered from the
    petitioners, if they have received it as part of
    bonafide or other valid transactions, unaware of it
    being proceeds of crime.”

    9. Learned Additional Advocate General appearing for respondent/State,

    submitted that this Court, in Vikram Singh Rana v. Union Of India & Others

    (WPCR No. 366 of 2026), decided on 27.07.2026, has already considered

    an identical issue relating to freezing of bank accounts during investigation

    and held as follows:

    “14. Having considered the rival submissions and upon
    perusal of the material available on record, this Court
    finds that only an amount of ₹33,000/-, credited to the
    petitioner’s account on 09.01.2026, has been identified
    as the suspected amount. The petitioner’s salary is
    regularly credited into the said account, which is also
    linked to repayment of his housing loan. In such
    circumstances, freezing the operation of the entire bank
    account would result in undue hardship to the petitioner
    and would be disproportionate to the object sought to be
    achieved. Accordingly, while the lien over the disputed
    amount of ₹33,000/- shall continue in accordance with
    law, the petitioner shall be permitted to operate the bank
    account for all other legitimate transactions, subject to
    his extending full cooperation to the investigating
    15

    agency as and when required.”

    10. Having heard learned counsel for the parties and upon perusal of the

    pleadings, the affidavit filed by the Superintendent of Police as well as the

    documents placed on record, this Court finds that the petitioner’s grievance

    essentially relates to the continued blanket freezing/debit restriction imposed

    on its business bank accounts. The petitioner has contended that the freezing

    of the entire accounts has brought its day-to-day commercial activities to a

    standstill, whereas the respondent/State has justified the action by submitting

    that the accounts were found to have been used for routing proceeds of

    alleged online betting transactions and that investigation into the larger

    money trail is still in progress. At the same time, in paragraph 13 of the

    affidavit, the investigating agency has itself stated that it is willing to modify

    the complete freeze by restricting the operation of the accounts through a lien

    limited to the disputed amount, subject to the petitioner extending cooperation

    in the investigation and furnishing the requisite financial records.

    11. It is well settled that the investigating agency possesses the authority to

    direct freezing of bank accounts during the course of investigation wherever

    the circumstances so warrant. However, such power is required to be

    exercised in a fair, reasonable and proportionate manner. Where the alleged

    tainted amount is identifiable, a blanket prohibition on the operation of the

    entire bank account, particularly when the account is used for carrying on

    legitimate business activities, may result in disproportionate hardship. The

    Delhi High Court in Neelkanth Pharma Logistics Pvt. Ltd. v. Union of India

    (2025 SCC OnLine Del 1055), after considering earlier decisions including

    Pawan Kumar Rai and Dr. Sajir, has observed that, wherever feasible,

    preservation of the disputed amount by way of marking a lien should

    ordinarily be preferred instead of freezing the entire account. This Court has
    16

    also adopted the same principle in Vikram Singh Rana v. Union of India &

    Others (WPCR No. 366 of 2026), wherein it was directed that while the lien

    over the disputed amount should continue, the petitioner therein be permitted

    to operate the account for all other lawful transactions.

    12. In the present case, the affidavit filed by the Superintendent of Police

    specifically discloses that cash deposits of Rs.99,000/- and Rs.1,00,000/-,

    aggregating to Rs.1,99,000/-, were allegedly deposited in the petitioner’s two

    bank accounts and are stated to form part of the suspicious transactions

    under investigation. The investigating agency has also expressed its

    willingness to substitute the complete debit freeze with a lien confined to the

    disputed amount. In the considered opinion of this Court, the interest of a fair

    investigation can adequately be protected by preserving the alleged disputed

    amount, while at the same time permitting the petitioner to carry on its

    legitimate business operations. Such a course would balance the competing

    interests of the investigation and the petitioner’s right to conduct its lawful

    commercial activities.

    13. In the facts of the present case, this Court is of the considered opinion

    that the ends of justice would be adequately served by protecting the amount

    alleged to be connected with the investigation while permitting the petitioner

    to carry on its legitimate business operations. Accordingly, without expressing

    any opinion on the merits of the allegations under investigation, the

    respondent Banks are directed to permit operation of the petitioner’s bank

    accounts, namely, IDFC First Bank Account No. 89150406008 and Federal

    Bank Account No. 10920200050513, subject to maintaining a lien over the

    disputed amount of Rs.1,99,000/-, in accordance with law. The petitioner shall

    extend full cooperation to the investigating agency, furnish such documents
    17

    and information as may be lawfully required during the course of

    investigation, and shall appear before the Investigating Officer whenever

    called upon to do so.

    14. With the aforesaid observations and directions, the writ petition stands

    disposed of. No order as to costs.

                        Sd/-                                       Sd/-
    
              (Ravindra Kumar Agrawal)                        (Ramesh Sinha)
                       Judge                                   Chief Justice
    
    
    
    Alok
     



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