Explain basis for putting on hold jeweller's bank accounts: Delhi HC to Centre

Court was hearing a petition by Malabar Gold and Diamonds Ltd seeking to direct union ministry and I4C to withdraw any communication or direction given to the SBI and HDFC Bank to "put on hold" its two bank accounts being maintained with them.

New Delhi: The Delhi High Court has directed the Centre to explain the basis for "putting on hold" two bank accounts of jewellery retailer Malabar Gold after it reportedly sold some gold items to a firm accused of fraudulent transactions.

Justice Sachin Datta said the union Ministry of Home Affairs (MHA) and Indian Cyber Crime Coordination Centre (I4C) to also disclose in their status report whether the jeweller was the subject matter of any complaint filed by any person on the basis of which investigation was being carried out.

The court was hearing a petition by Malabar Gold and Diamonds Ltd seeking to direct the union ministry and I4C to withdraw any communication or direction given to the State Bank of India and HDFC Bank to "put on hold" its two bank accounts being maintained with them.

The high court issued notice to the respondent authorities on the petition.

"Let a status report be filed by the respondent numbers 1 (MHA) and 4 (I4C) within a period of one week, specifically setting out the basis on which bank accounts of the petitioners have been 'put on hold'," it said.

The April 3 order further asked for the status report "specifically" disclosing if the petitioners were the subject matter of a complaint filed by any person, prompting an investigation.

The court directed the officer concerned of I4C to join the proceedings in the matter on the hearing on April 21.

I4C was established under MHA to act as a nodal point at national level in the fight against cyber crime.

The plea said the petitioners were engaged in the business of buying and selling of gold ornaments, gold items and precious stones.

In the regular course of business, one private entity approached the petitioners in July, 2024 to buy gold items like gold bars and coins, it claimed.

Thereafter, the petitioners undertook certain transactions with that private entity after following the usual procedure including the "Know Your Customer" process, the company added.

The plea said subsequently, a cyber complaint alleging fraudulent transactions was filed against the buyer firm by third parties and denied any involvement in the case.

The authorities, it said, proceeded to mechanically attach or "put on hold" the bank accounts of the petitioners, bringing the business to a standstill and infringing upon the rights of the petitioners.