Freezing led to non-payment of its operational expenses, says petition

The Adarsh Cooperative Housing Society on Tuesday filed a petition in the Bombay High Court, challenging the freezing of two of its bank accounts, and sought their de-freezing.

“We filed the petition today. It was mentioned before the Division Bench of Justices A.M. Khanwilkar and A.R. Joshi. We were directed to place it before the Bench of Justices B.H. Marlapalle and R.V. More,” Satish Maneshinde, counsel for the Society, told The Hindu.

The CBI had written to the State Bank of India on January 31, asking the bank to freeze the two accounts of the Society. The petition stated that the offences being investigated by the CBI were against the accused individuals and not against the Society, and thus a freezing of the Society's account would not serve any purpose.

The petition (a copy of which is with The Hindu) has challenged the freezing of the Society's accounts on the grounds of “violation of the Fundamental Rights under Articles 14, 19, 21 of the Constitution of India”.

“Petitioner is, inter alia, challenging in the present petition, the ex-facie illegal, arbitrary and unconstitutional actions on the part of Respondent No.3 [CBI] in illegally stopping the operation of the said accounts of the petitioner, which have been exercised without jurisdiction, without following the due process of law and without having the necessary mandate in law,” the petition stated.


It said that the freezing of the accounts, which had over Rs.5 lakh, had led to the non-payment of the operational expenses of the Society, which was more than Rs.2 lakh per month.

It further stated: “Due to arbitrary and illegal action of Respondent No. 3 thereby freezing the bank accounts, the petitioner is rendered helpless and is being deprived of its fundamental right to defend itself before various fora, which [is] duly protected by the Constitution of India.”

The CBI filed an FIR against 13 accused in the Society issue on January 29.

Keywords: Adarsh Society