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.
