High Court · 2025

Petition Under Article 226 of the constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High court may be pleased to issue an appropriate writ, order, or Direction, more particularly a writ in the nature of Mandamus, a. Declaring the actions of Respondent No. .l and 2 in imposing and maintaining a debit freeze and lien on the bank account of Petitioner No 'l Society bearing A/c No. 409001432Si 1, maintained with RespondentNo1l,tcthetuneofRs.90,26,22,54607/-(Rupeer;NinetyCrore Twenty-Six Lakh Twenty-Two Thousand Five Hundred Forty-Six artd seven Paise Only), as being vrholly without .iurisdiction, illegal' arbitrilry' perverse' u nconstitutio n a I and ir dtrect contravention of the order dated 1911012024 passed bytheHonourableXXlllAdditionalCityCivilandSessionsJudlle-cum.Special Judge (P.C. Actt, 3engaluru apart from being in gross viclation of the fundamental rights o{ the Petitioners under Articles 14, 1g' and 21 of the Constitution of lndia zrnd set aside the same, b Consequently, dirt:ct Respondent No. 1 and 2 not to in lerfere in any manner with the operation and running of the bank account of Pr:titioner No. 1 society bearing fuc No '109001432511' maintained with Rescondent No.2, including by not rssuing ary further debit treeze or lien instrur;t ons in the future in respect of the said account in relation to Cr No 1 1812024 dat<fi 2810512024. l.A.NO:1 OF 2025 Petition under section 151 CPC praying that in the circumstances stated in the affidavit fited in ;lpport of the petition, the High court may be pleased to permit the Petitione,r No.'1 Society to operate its bank account bearing Aic No. 409001432511 , maintained with Respondent No.2, including by r;uspending the effect and operatiorr of the debit freeze and lien imposed by Re'spondent No-'l and 2 to the tune of Fis; 90,26,22,546.07t- (Rupees Ninety Crore Twenty-Six Lakh Twenty-Two Thousirrrd Five Hundred Forty-Six. and seven Paise only), pending disposal of the presetrt writ petition. Counsel for the Petitioners : SRI SAIRAM KANAKAMEDALA Counsel for the ResJrondent No.1 : - Counsel for the Respondent No.2 : SRI UMESH MANTHANT' LEARNED COUNSEL REPRESE:NTING SRI MAMILLA ASHWIN REDDY Counsel for the Respondent Nos.3 & 4 : G.P FOR HOME The Court made the lollowing ORDER r THE HON'BLE SRI JUSTICE N.V. SHRAVAN KUMAR WRIT PETITION No.52L2 of 2O2S ORDER: This writ petition is filed seeking the following prayer: "to declare the action of Respondent Nos.l and 2 in imposing and maintaining a debit freeze and lien on the bank account of Petitioner No.l Societg beairug A/ c. No. 4O9OO 1 432 5 1 1 maintained uLith Resporudent No.2 to the tune of Rs.9O,26,22,546.O7 Rupees Ninetg Crore Tutentg Srx Lakhs Twenty Two Thousand Fiue Hundred Fortg S* and Seuen Paise Onlg as being uthollg uithout iurisdiction, illegal, arbitrary, peruerse unconstitutional and iru direct contrauention of the order dated 19.1O.2024 passed bg the Honourable XXIII Additional City Ciuil and Sessions Judge-cum-Special Judge, P.C. Ad, Bengaluru apart from being in gross uiolation of the fundamental rights of the Petitioners under Articles 14 19 and 21 of the Constitution of Irudia and set aside the same and Consequentlg direct Respondent Nos.7 and 2 not to interfere in any ffLctnner utith the operation and runnirug of tle bank account of Petitioner No.l beaing A/ c. N o. 4 O 9 O O 1 4 3 2 5 1 1 maintaine d uith Re sp o ndert No.2 inctuding bg not issuing ang further debit freeze or lien instntcttons in the future in respect of the said accoint in relation to Cr.No.118 of 2024, dated 28.05.2024." Societg

2. Heard Sri Sai Ram Kalakamedala, learned counsel appearing for the petitioners, Sri Umesh Manthani, I 1 I I I.IVSK,J W.P.No.5 212 of 2025 \ 2 learned courisel representing Sri Mamilla Ashwin Reddy, learned. counsel appearing for respondent Nc.2 and learned Government Pleader for Home appearing for respondent l\[c,s;.3 and 4. Perused the record.

3. Facts in. rrief are as follows: Petitione: No.2 herein, who is the Chairman of the Petitioner Nc,. l-SocieV submits that it is a well reputed financial institution established under the provir;idns of the Multi-State Co-operative Societies Act, 2OO2. The Petitioner Nrr.,[-Societ5r is committed to the e<:onomic welfare of its, members and has been instrumt:ntal in providing creclit facilities. It is surtrmitted that tJ.e Petitioner No.1-Society is maintaining banking relationships with multiple fLnancial institutions including Respondent No.2-Bank and a bank account (currt:nt account) bearing A/c No.409O01432511 is maintainecl for the financial operations of the society. 7 NVSK,J W,P-No.5212 of 2O25 3 It is also submitted that on 23.05.2024 it was brought to the notice of the petitioner No. 1-society that its bank account had been debit frozen and upon enquiry, it was informed that the debit freeze had been imposed based on the instructions issued by Respondent No. 1 to Respondent No.2 herein. It is also submitted that it was later brought to the knowledge of the Petitioners that Respondent No.1 herein being the principal bank where the account of Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited is maintained, issued a communication dated 23.05.2024 directing Respond.ent No.2 herein to impose a debit freezd on the bank account of Petitioner No.1-Society on the ground of certain alleged wrongful credits into the account of petitioner No.1- Society in relation to funds purportedly belonging to Karnataka Maharshi Valmiki Scheduled Tribes I Development Corporation Limited and on the very same date Respondent No.1 herein had issued another I.n/SK,J w-P.No.5.2 I2 of 2025 4 communicatiorL directing respondent No.2 to marl< a lean on the said barLk account. It is furtlLer submitted that on 28.05.2024 a <:riminal case bearing Cr.No.118 of 2024 was registered by the High Grounds Police Station, Bengaluru City, Karnataka (later taken over by Respondent No.4 herein) connection r,vith the alleged misappropriation of funds belonging t.o Karnataka Maharshi Valmiki Scheduled Tribes Develop rnent Corporation Limited. It is the furrther case of the petitioners that they were not originalll, named as accused in the F.I.R. and they were subseqtrr:ntly implicated at a later stage, despite the absence of any' cogent material or pima facie evidence. They are also pursuing appropriate legal remedies, including seel<ing quashment of the said proceedings before the corrpetent Court in Bengaluru, Karnatal<a. It is furrther submitted that aggrieved b:f such unlawful and zLr:bitrary actions, Petitioner No.2 her,ein had .l 7 N\/SK,J W.P.No.52 i2 of 2025 5 preferred an application before the learned XXII Additional City Civil and Sessions Judge-cum-special Judge (P.C. Act), Bengaluru, under Sections 451 and 457 of the Cr.P.C., seeking directions for unfreezing of the bank accounts belonging to Petitioner No.1-Society, including the account bearing Account No.409OO1432511 maintained with Respondent No.2 herein. Thereafter learned Sessions Court vide orders dated 19.10.2024 directed unfreezing of all bank accounts belonging to Petitioner No.l-Societ5r, including Account No.4O9O0143251 1 maintained with Respondent No.2 herein. The conclusive findings of the aforesaid order read under: "a. That only an amount of Rs.7.5 Crores was found to belong to Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation Limited. b. That Petitioner No.l-Society was directed to remit Rs.7.5 Crores to Respondent No.4, and upon such remittance, all its bank accounts, including the one maintained with Respondent Mr'SK,J W.P.No.5 212 of 2025 6 No.1 w,:rr: to be unfrozen forthwith without any further r,:strictions." It is firrtkrer submitted that in compliance rvith the aforesaid ord,:r passed by the learned Sessionrs Court Respondent Nc,.4 herein issued a letter dated 21.LO.2O24 to Respondent No.2 herein directing the immediate unfreezing o1' [he bank account of Petitioner No.1-Society and permittir:Lg normal operations. Thereafter, in due compliance with the directions of the aforesaiC order dated 19.LO.2.O24, Petitioner No.l-Society duly remitted an amount of Rs.7.5 Crores to the account of Respondent No.4 herein ctrt 24.1O.2024.

4. The mairr grievance of the petitioners herein is that inspite of the directions given by the learned Siessions Court vide order dated L9.LO.2O24, respondent No.2 herein has r,:fused to unfreeze the bank accrtunt of petitioner Itlo.l-Socie[r vide account bearing A/c.No.4O9O()1432511, which is being questionec[ in the present writ lrt:tition. 7 I\I\/SK,J W-P.No.5212 of 2025 7

5. Learned counsel appearing for respondent No.2 has placed written instructions of RBL Bank - respondent No.2 herein, wherein it is submitted that about 54 directions have been received by various Law Enforcement Authorities ("LEA") ald one from the Union Bank of India with respect to marking lien on the account bearing No.409O01432511 excluding 10 additional operational lien marked as per NPCI procedural Guidelines operation on the said account.

6. He further submitted that to the extent of 54 directions as per law enforcement authorities, the account to that extent would be unfreezed and that as per records there are total 10 number of operational lien aggregating to an amount of Rs.9,0O,457.OO/- marked in this account as directed under NPCI operational Guidelines and the sarne caJrnot be unfreezed at this point of time. \ \ I I I\\/SK,J W. P. No.5212 of 2025 8

7. Learnec[ counsel appearing for the petitioners would submit that b,F recording the aforesaid submissiotrs made by learned ccunsel appearing for the 2'd respondent appropriate older be passed directing respondent No.2 to unfreeze the account of petitioner No.l-Society to the extent of 54 directions of the various law enforcement authorities br, frxing some time frame.

8. In view cf the aforesaid submissions and without going into thr: merits of the case, this Writ Petition is disposed of directing respondent No.2 to unfreeze the account of pt:titioner No.l-Society to the extent of 54 directions of' 1-he various law enforcement authorities within a perioC of one week from the date of receipt of a copy of this or,ler. There shall be no order as to cor;ts. Miscell.aneous applications, if any pendin51, shall stand closecl. //TRUE COPY// SD/.MOHD.ISMAIL ASSISTANT REGISTRAR / I l SECTION OFFICER

1. The Manager. tJnron Bank of India, MG Road Branch, 114, Sai {)omplex M G Road, Bengaluru-560001.

2. The Manager, RllL Bank Limited, Banjara Hills Branch Ground t:loor, NSL tcon,8-2-684/2./1,, Road No. 12, Banjara Hiils, Hyderabqd - 500016. 3. The Office of the Director General of Police, C.l.D., Special Units and n€,es.|$ld ."eaffto,n+lo6e. Palacefloarl--Fr*rrrr*tr;F-:-t6'firin r-- *' To Y 4 The Deputy Superintendent of polrce and lnvestigating Officei, SlT, ClD, Bengaluru, Financial lntelligence Unit ClD, Beng;luru_S60001. 5. One CC to SRt SAIRAM KANAKAMEDAI-n, AO"vocate tOpUCI 6. One CC to SRt MAMILLA ASHWTN REDDY, nAvlcate tOpUCl 7. Two CD Copies Bfu rro csfr Gp t"v 6 lbr,'te, t+\h G,nk k" tA 9.k ofi tU^y@l I \ HIGH COURT DATED:201031',2025 \ t ORDER WP.No.5212 ol2025 DISPOSING OF THE W,P WITHOUT COI}TS. (D@'' { 2b ) .: t !l fiAfi 2025 (1 ( 't. ?t c * 14i'cHeO