Delhi HC Urges Compassion as Trader’s Bank Account Frozen Over ₹200 ‘Suspicious’ Transaction

Delhi HC Urges Compassion as Trader’s Bank Account Frozen Over ₹200 ‘Suspicious’ Transaction

New Delhi: The Delhi High Court has called on investigative agencies to exercise discretion and show compassion while handling cases involving small traders after a businessman’s bank account was frozen over a mere ₹200 transaction flagged as "suspicious."

During the hearing, the petitioner, a local trader, argued that his business had suffered due to the abrupt freezing of his account, which was his primary source of transactions. The court expressed concern over the impact of such actions on small business owners and emphasized that regulatory authorities must differentiate between genuine trade activities and illicit financial transactions.

The bench questioned the proportionality of the response, stating that freezing an account over an insignificant amount could disrupt livelihoods and tarnish reputations. The court directed the concerned agencies to review their procedures and ensure that innocent individuals do not face undue hardship.

The case has sparked debate over the rigid enforcement of financial regulations and the need for a more balanced approach in dealing with suspected irregularities. The matter has been adjourned for further hearing, with the authorities asked to submit a report on the steps taken to resolve such issues fairly.

Author : Omansh Kapur

Posted on : 27,Feb,2025

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