Use of frozen accounts for institutional expenses allowed to continue, subject to audit, account maintenance, and periodic disclosure.

An interim arrangement allowing use of frozen accounts for salary and institutional expenses was continued and made absolute because the petitioner-organisations were operating numerous educational and health institutions with recurring financial needs. The Court balanced the ongoing investigation against the need to keep the institutions functioning, and imposed safeguards requiring complete statements of account, audit by a Chartered Accountant, and periodic disclosure to the Investigating Officer or Trial Court. It declined to examine contempt allegations and recorded no finding on the merits of the disputed withdrawals.

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Issues: Whether the interim order permitting use of the frozen accounts for payment of salary and institutional expenses should be made absolute, subject to safeguards regarding maintenance and audit of accounts.

Analysis: The Court accepted the limited arrangement already operating under the interim order and noted that the petitioner-organisations were running a large number of educational and health institutions requiring funds for recurring expenditure. The order balancing the investigation with the need to keep the institutions functioning was continued, with the additional safeguard that proper and complete statements of accounts be maintained, audited by a Chartered Accountant, and supplied periodically to the Investigating Officer or the Trial Court. The Court declined to go into the allegations of contempt and recorded no finding on the merits of the disputed withdrawals.

Conclusion: The interim permission to use the accounts for salary and institutional expenses was made absolute, subject to maintenance, audit, and periodic disclosure of accounts.

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