In Brief
The Supreme Court upheld the seizure of nine bank accounts belonging to NGO-led trusts and their operators in a case involving alleged misappropriation of funds collected in the name of 2002 Gujarat riot victims. The Court clarified that under Section 102 of the Criminal Procedure Code, police can freeze bank accounts when circumstances create suspicion of an offence, without prior notice to the account holder. No prior notice is legally mandated. The Court distinguished earlier cases, holding that mere auditing or FCRA authorization does not prevent seizure. The appellants must explain discrepancies during investigation. Upon completing the investigation, if satisfied that seizure is unnecessary, the investigating officer may issue de-freezing instructions. The appeals were dismissed.
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