https://www.taxtmi.com/caselaws?id=472876 Bank account freezing based on suspicious-transaction monitoring requires a transaction profile that objectively supports the suspicion. Banks, as custodians of customer accounts rather than enforcement agencies, must not question legitimate business transactions or impose arbitrary restrictions. RBI Know Your Customer Directions require monitoring of suspicious transactions but do not permit account freezes without proper basis. Prior notice, a show-cause opportunity and a personal hearing are necessary safeguards where freezing materially affects civil and commercial activity. Restrictions imposed without these safeguards may breach natural justice, fail proportionality review, and infringe constitutional business and personal-liberty rights. en-us Fri, 13 Feb 2026 00:00:00 +0530 Tue, 27 Oct 2026 19:10:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=472876 Bank account freezing based on suspicious-transaction monitoring requires a transaction profile that objectively supports the suspicion. Banks, as custodians of customer accounts rather than enforcement agencies, must not question legitimate business transactions or impose arbitrary restrictions. RBI Know Your Customer Directions require monitoring of suspicious transactions but do not permit account freezes without proper basis. Prior notice, a show-cause opportunity and a personal hearing are necessary safeguards where freezing materially affects civil and commercial activity. Restrictions imposed without these safeguards may breach natural justice, fail proportionality review, and infringe constitutional business and personal-liberty rights. Case-Laws Money Laundering Fri, 13 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=472876