The Rajasthan High Court has ruled that freezing a citizen’s bank account without clear reasons or limits cannot continue indefinitely. The court observed that such action can seriously disrupt a person’s financial life and may violate constitutional rights.
While hearing a petition filed by a Bhilwara resident whose bank account had been frozen over suspected fraudulent transactions, the court allowed the account to operate for normal transactions but directed that the disputed amount remain blocked.
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Background of the Case
The petition was filed by Vinit Kumar Adiwal, a 25-year-old resident of Bhilwara district in Rajasthan. His bank account with UCO Bank’s Nagori Garden Branch had been frozen after allegations of certain fraudulent transactions.
Seeking relief, the petitioner approached the High Court under Section 528 of the Bharatiya Nagarik Suraksha Sanhita (BNSS). He requested directions to the authorities to defreeze his bank account so he could access the funds for regular financial activities.
During the hearing, the court noted that although investigative agencies are empowered to request banks to freeze accounts during investigations, such powers cannot be exercised in an unlimited or arbitrary manner.
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Court’s Observations
Justice Farjand Ali emphasized that freezing a bank account affects a person’s everyday financial transactions and livelihood. The court noted that authorities must provide reasons and ensure that the action is proportionate.
The bench observed:
“There cannot be freezing of account perpetually without intimating the account holders what for their account is freezed and what extent it has to be freezed.”
The court further stated that blocking access to a bank account without establishing even a basic connection between the account and a criminal offence can amount to a serious violation of constitutional rights.
According to the court:
“The freezing of a citizen’s bank account… without establishing even a prima facie nexus with the commission of any cognizable offence amounts to a grave intrusion into fundamental rights.”
The bench also explained that such orders may interfere with the right to life and personal liberty under Article 21 and the freedom to carry on trade or business under Article 19(1)(g) of the Constitution.
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Issue with Blanket Freezing Orders
The High Court noted that in the present case only a certain amount was under dispute. However, the bank had frozen the entire account, preventing the petitioner from accessing any funds.
The court said this kind of blanket restriction is not justified when the alleged disputed amount can be identified separately.
Justice Ali remarked that freezing the whole account without specifying the amount or duration of the restriction could severely affect an individual’s livelihood and financial independence.
The court concluded that keeping only the disputed amount on hold would balance the interests of both the investigation and the account holder.
Court’s Decision
After considering the submissions of both sides, the High Court directed that the disputed amount in the petitioner’s account would remain frozen. However, the petitioner would be allowed to operate the account for all other lawful transactions.
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The court ordered the bank to ensure that only debit transactions up to the disputed amount remain restricted while the rest of the account remains operational.
The account concerned is held with UCO Bank, Nagori Garden Branch, Bhilwara.
The court further directed the Superintendent of Police to immediately communicate the order to the concerned bank branch so that the account could be defrozen without delay.
With these directions, the High Court disposed of the writ petition along with the pending applications.
Case Title: Vinit Kumar Adiwal v. State of Rajasthan & Others
Case Number: S.B. Criminal Writ Petition No. 619/2026
Decision Date: 24 February 2026
