Bank account seizure under criminal procedure upheld where investigation showed suspicious transactions and de-freezing was refused.

Section 102 CrPC permits seizure of bank accounts where the investigating agency has material creating suspicion of an offence and the accounts have a nexus with the investigation. Prior notice to the account holder is not required before seizure, though intimation to the Magistrate remains necessary. During an ongoing investigation, the court will not undertake a merits review of account entries or treat the matter as a trial at that stage. On the stated facts, the freezing of the accounts was treated as valid and de-freezing was refused because it would prejudice the investigation.

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Issues: Whether bank accounts could be frozen under Section 102 of the Code of Criminal Procedure, 1973 on the basis of material creating suspicion of the commission of an offence, without prior notice to the account holders, and whether de-freezing was warranted during pendency of investigation.

Analysis: Section 102 permits seizure of property, including bank accounts, when there is material creating suspicion of the commission of an offence and the property has a nexus with the investigation. The Court reaffirmed that prior notice to the account holder is not a requirement before seizure, provided intimation is sent to the Magistrate as contemplated by the provision. On the facts, the investigating agency had collected substantial material suggesting suspicious financial transactions, alleged diversion of funds, and non-cooperation during investigation. The Court held that it is not for the court to conduct a trial at this stage or to test the entire account entries on merits while investigation is continuing. De-freezing at this stage could prejudice the investigation, and the proper course would be to seek relief after completion of investigation if the accounts are found unnecessary for further inquiry.

Conclusion: The freezing of the bank accounts was held valid and the request for de-freezing was rejected.

Ratio Decidendi: Bank accounts may be seized under Section 102 of the Code of Criminal Procedure, 1973 when the investigating agency has material creating suspicion of an offence and the accounts are not to be de-frozen during an ongoing investigation unless the seizure becomes unnecessary in law.

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