The Delhi High Court has asked probe agencies to exercise care and caution over blanket freezing of bank accounts.
The matter before Justice Manoj Jain related to one such action of the agencies on the petitioner company's account, having a withdrawal balance of more than Rs 93 crore, but witnessing an innocuous entry of Rs 200.
"Such blanket measures, if taken recourse to, without offering any reason, can certainly play havoc with the financial concerns of such account holders," it said.
The court's February 20 order said, "It is, therefore, high time that the investigating/law enforcement agencies, in the context of freezing bank accounts, act with requisite care, caution and yes, compassion as well."
Instead of freezing the bank account, the court said, authorities should explore the possibility of marking a lien on the disputed amount to mitigate the undue hardship caused to account holders and ensure the disputed amount was secured.
Taking note of multiple such cases, the cou