The Delhi High Court has quashed an order of the National Skill Development Corporation (NSDC) freezing the bank accounts of the Security Sector Skill Development Council (SSSDC), which was set up to provide professional certification for private security industry.
The government had in January this year de-accredited the SSSDC after an audit found several alleged malpractices, including misuse of funds and serious conflict of interest. NSDC had then directed AXIS Bank to freeze two bank accounts of the SSSDC.
Justice Vibhu Bakhru ruled that the NSDC’s order directing freezing of the SSSDC’s accounts “is, plainly, without authority of law”. Senior advocate Arvind Datar , appearing for SSSDC, argued that in terms of the NSDC’s January 9 order, AXIS Bank has frozen its two accounts. The court noted that the principal reason for January 9 communication stems from an allegation that the SSSDC had diverted the grant given by the Centre.
