SANJEEV AGGARWAL 11 October 2017

Freezing of bank account of third party u/s 102 by police

A corporate bank account of ours [HP based Pvt Ltd CO.] has been freezed by Mumbai Police by issuiing notice to our bank's Mumbai Branch u/s 91,102,160 without giving us any notice or information, mentioning a default in ICICI BANK loan repayment\fraud by a Mumbai based company Leewaay Logistics pvt Ltd. Neither our company has any relation or transactions with the said company. May be one of our customer was having transactions with the fraudulent company and has received proceeds from that company and our company has received payments from our customer. Just anticipating not known. In my view the police has exceeded its power u/s 102. They can freeze\seize property of accused but not the third party. The Mumbai Bank also should not have frozen the account and should have forwarded the notice to our branch which is in HP. Kindly give your views. A copy of notice is attached.

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G.L.N. Prasad (Retired employee.) 11 October 2017

Take up the case through advocate. In case of doubtful transaction, they may have to freeze particular amount and not operations in the account. Still, they have to issue notice to clients, as they may without such information may be crediting some amounts and issuing cheques. Even in case of Garnishee order, they have to issue two orders, orders NISI and orders absolute. Some thing is wrong and the police have exceeded their powers.

P. Venu (Advocate) 11 October 2017

Yes, the Police have such powers to freeze accounts u/S 102 CrPC. But the matter is required to be reported to the Court. If the action is unjustified, you can approach the Court.