Bank guarantee condition upheld for withdrawal from frozen account during investigation into alleged tainted funds.

A bank guarantee condition attached to withdrawal of funds from a frozen account was upheld where the account had been attached under Section 102 CrPC in an ongoing probe into alleged financial irregularities. The Court noted that prior Supreme Court orders had distinguished between money already released and the remaining balance, and had not permitted unconditional release of the balance. On the material then available, the allegation that the funds were linked to tainted transactions routed through foreign entities could not be rejected at the interim stage, especially since the accused's discharge was not final and the revision remained pending. The challenge to the Magistrate's condition was therefore rejected.

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Issues: Whether the condition requiring the petitioner to furnish a bank guarantee of an amount equal to the balance in the frozen bank account, while permitting withdrawal of the amount, called for interference.

Analysis: The amount in question formed part of a larger account that had been frozen under Section 102 of the Code of Criminal Procedure, 1973 in connection with an ongoing investigation into serious financial irregularities. The earlier orders of the Supreme Court had drawn a clear distinction between the amount already released and the remaining balance, and had not granted unconditional release of the latter. On the material placed by the CBI, the Court was not prepared at the interim stage to reject the allegation that the funds could be linked to tainted transactions routed through foreign entities and back into the account. The discharge of the concerned accused was also not final, since the revision against that order remained pending.

Conclusion: The condition imposed by the Magistrate was not interfered with and the petition was dismissed.

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