The Madras High Court has condemned the practice of police indiscriminately freezing bank accounts of suspects, asserting that investigation officers are not empowered by law to take such actions. Justice G Jayachandran made this observation while directing the unfreezing of a bank account frozen by the Ramapuram police inspector in connection with a financial dispute between two individuals.
The case involved Mohamed Abusalihu, who owed money to his friend Jayasamraj. Based on Jayasamraj’s complaint, the Ramapuram police inspector registered a First Information Report (FIR) against Abusalihu under Section 420 of the Indian Penal Code (IPC) and Section 66D of the Information Technology Act. The inspector then instructed the Federal Bank, where Abusalihu held an account, to freeze his account.
Abusalihu challenged this action in court, arguing that the freezing of his account was unjustified. The court, in its ruling, clarified that a complaint of default in repayment of money does not automatically constitute an offense under Sections 420 of the IPC and 66D of the IT Act, even if there are elements suggesting potential criminal activity. The court emphasized that the police lack the authority to freeze a suspect’s account without establishing that the funds in the account represent proceeds of crime.
The court’s ruling strongly criticized the police’s indiscriminate use of this power, deeming it unacceptable. The court noted that Abusalihu had been subjected to financial hardship for five months due to the freezing of his account, highlighting the potential for misuse of this power. The court’s decision serves as a reminder of the importance of due process and the need for police to exercise their powers responsibly, ensuring that individuals’ financial rights are not unjustly curtailed.
