Page 28 - Bullion World Volume 4 Issue 9 September 2024

P. 28

"Understanding the Power to Freeze

Bank Accounts: Legal Frameworks

and Challenges"

Mr K.P. Singh, Managing Partner, ASAV Attorneys & Advisors LLP

1. Economic offences and white-collar crimes have
always been a threat to India’s economic prosperity.
With technological advancements in every field, we
have witnessed a sudden spike in such offences as
miscreants have devised ingenious ways to avoid
being detected by the authorities. In response,
Government has been enacting stringent legal
provisions in order to give the investigating &
prosecuting agencies, wide-ranging powers &
wherewithal to effectively detect and prosecute
cases involving complex financial transactions which
cause massive loss to the exchequer. One of such
powers is the power to freeze bank accounts which
is technically known as Attachment of Property.

2. The most basic provision to this effect is Section
102 of erstwhile CrPC, which has been incorporated
verbatim in the new BNSS as Section 106. This
section empowers “Any” police officer that they
“may” seize any property which “may” be alleged
or suspected to have been stolen, or which may be
found under circumstances which create suspicion
of the commission of any offence. Similar powers
have been granted to other law enforcement Mr K.P. Singh
agencies through specific provisions in various laws,
some of which are enumerated here:

a) Section 83 of CGST Act, 2017- Power of Provisional
Attachment to protect revenue in certain cases (2) Every such provisional attachment shall cease to
have effect after the expiry of a period of one year from
the date of the order made under sub-section (1).”
“(1) Where, after the initiation of any proceeding

under Chapter XII, Chapter XIV or Chapter XV, the
b) Section 110 (5) of Customs Act- Seizure of goods,
Commissioner is of the opinion that for the purpose
documents and things
of protecting the interest of the Government revenue it is
“(5) Where the proper officer, during any proceedings
necessary so to do, he may, by order in writing, attach
under the Act, is of the opinion that for the purposes
provisionally, any property, including bank account,
of protecting the interest of revenue or preventing
belonging to the taxable person or any person specified
smuggling, it is necessary so to do, he may, with the
in sub-section (1A) of section 122, in such manner as
approval of the Principal Commissioner of Customs
may be prescribed.

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