Directorate of Revenue Intelligence cannot freeze bank account

The Delhi High Court recently set aside the letter of the Directorate of Revenue Intelligence asking Union Bank of India to freeze the current account of a firm and calling upon the bank not to permit any withdrawal till further communication. The bank account of the proprietor of the readymade garment manufacturer was frozen because of fraudulent exports by some other firms.

The high court stated in its judgment, R K Impex vs Union of India, that the authorities were not able to show any power under the Customs Act to take such action on bank accounts. The authorities have the power to search premises and seize goods but they have no power to issue a letter to the bank as they did.