Jaipur, March 30 In a significant ruling, the Rajasthan High Court has held that investigating agencies cannot freeze an individual’s entire bank account and must restrict action only to the disputed amount.
The order came in a case involving filmmaker Shwetambari Vikram Bhatt, whose accounts had been frozen fully during a fraud investigation.
The court observed that freezing a bank account is an “extraordinary measure” and should be used sparingly, with due legal safeguards.
It ruled that debit restrictions should apply only to the alleged disputed amount -- around Rs 30 crore in this case -- and not the entire account.
“Blocking an account in a mechanical manner, without establishing a direct link to the alleged offence, violates fundamental rights,” the Court noted, citing Articles 21 and 19(1)(g) of the Constitution.
The case stems from an FIR filed by Udaipur-based Dr Ajay Murdia against filmmakers Shwetambari Bhatt and Vikram Bhatt, alleging fraud and criminal conspiracy.
According to the complaint, a film production agreement was signed in May 2024 with an initial budget of Rs 40 crore.
It is alleged that the budget was later inflated, and additional funds were sought under the pretext of producing more films.
The complainant claims to have invested approximately Rs 44.28 crore, out of which nearly Rs 30 crore was allegedly misappropriated through fraudulent billing. Despite the investment, only one film was released, while others remain incomplete or unstarted.
Acting on instructions from the investigating officer in Udaipur, banks had frozen all accounts of the Bhatt couple.
Their counsel argued that the funds were legitimate professional earnings and that due process was not followed. It was also submitted that the freeze had paralysed their financial life, affecting daily expenses, salaries, loan repayments, and medical needs.
Justice Farzand Ali, who heard the matter, directed that such blanket restrictions are unjustified. The order was uploaded on March 28.
The SHO of Bhupalpura Police Station has been instructed to promptly share the order with the concerned banks.
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