Gunaseelan vs The State of Tamilnadu, Rep. by The Superintendent of Customs,
- Court
- Madras High Court
WP Crl.(MD) No. 680 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 05-11-2026
CORAM
THE HON'BLE MRS. JUSTICE K. GOVINDARAJAN THILAKAVADI
WP Crl.(MD) No. 680 of 2026
CNR:{HCMD010167052026}
Gunaseelan ..Petitioner
Vs
1. State represented by,
The Superintendent of Customs,
Division Preventive Unit,
Customs Division,
Nagapattinam,
Nagapattinam District.
2. The Branch Manager,
Indian Overseas Bank,
Nagapattinam Branch,
Block No.15 T.S. No. 984 to 986,
Perumal East Street,
Nagapattinam 611001.
3. The Branch Manager,
Karur Vysya Bank,
Nagapattinam Branch,
Naduvarkeela Street,
Nagapattinam 611001.
4. The Branch Manager,
Union Bank,
Nagapattinam Branch,
Nilasouth Street,
Nagapattinam 611001.
5. The Branch Manager,
Indian Bank,
Nagapattinam Branch,
Nethaji Street,
Nagapattinam 611001. ..Respondents
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PRAYER: Writ Petition is filed under Article 226 of the Constitution of
India, to issue a Writ of Certiorarified Mandamus to call for the records
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pertaining to the impugned order passed by the 2 Respondent vide letter
dated 27.12.2023 and quash the same as illegal and consequently
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directing the 1 Respondent to issue a NOC for defreezing Petitioner and
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his family members bank accounts in 2 to 5 Respondent’s banks,
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frozen during investigation in Or.No.02 of 2021 on the file of the 1
Respondent by considering the petitioner’s representation dated
20.09.2023 or any further order or orders as this Court may deem fit.
For Petitioner : M/s.Naresh Prabu A
For Respondents : M/s.S.Gurumoorthy
Special Public Prosecutor for R1
M/s.Y.Jagadeesh for R2
M/s.C.Karthik for R4 and R5
ORDER
The present Writ Petition has been filed seeking to quash the
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impugned order dated 27.12.2023 passed by the 2 respondent and
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consequently, direct the 1 respondent to issue a No Objection Certificate
for defreezing the bank accounts of the petitioner, which was frozen
during the investigation in Crime No. 2 of 2021 by considering the
petitioner's representation dated 29.10.2023.
2. The case of the petitioner is that he is a well known you tuber
operating a channel in the name and style of “Nagai Meenavan”. Apart
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WP Crl.(MD) No. 680 of 2026
from his Youtube activities, he is also engaged in the fishing business in
his locality. He maintains bank accounts with Indian Overseas Bank,
Union Bank of India and Indian Bank. His parents, namely, Lakshmi and
Thamaraiselvan, are also engaged in fishing and marketing activities and
maintain separate bank accounts with Karur Vysya Bank.
3. According to the petitioner, during the year 2021, news suddenly
circulated on social media alleging recovery of ganja from the fishing
boat belonging to the you tuber “Nagai Meenavan”. On coming to know
of the said news, the petitioner voluntarily surrendered before the
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jurisdictional Court and came to know that the 1 respondent had
registered a criminal case against him.
4. The prosecution case is that, on 26.09.2021 at about 10.30 p.m.,
the Inspector of Police, Divisional Preventive Unit, Customs Division,
Nagapattinam, received secret information regarding the alleged
smuggling of narcotic substances through a blue coloured fishing boat
from Akkaraipettai harbour. Based on the said information, the Customs
Preventive Unit proceeded to the harbour along with two independent
witnesses. On reaching the place, the allegedly noticed four persons
acting suspiciously near the fishing boat bearing the name “Nagai
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Meenavan”. On seeing the Customs officials, the said persons allegedly
fled from the place, abandoning four two-wheelers.
5. On conducting a search of the fishing boat, the officials
allegedly recovered ten HDPE bags containing dried dark green leaves
weighing approximately 270.370 kgs, suspected to be ganja. The said
contraband, along with the fishing boat and four two-wheelers, was
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seized. Thereafter, the 1 respondent filed a final report against four
persons, including the petitioner for the offences under Sections 8(c) r/w
20(b)(ii)(C), 25, 28 & 29(1) of the NDPS Act, 1985 which culminated in
C.C. No. 62 of 2022 on the file of the Special Court, Thanjavur.
6. It is the further case of the petitioner that, during the course of
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investigation, the 1 respondent caused the bank accounts maintained by
the petitioner and his family members to be frozen by invoking Section
68F of the NDPS Act, on the suspicion that the amounts available therein
represented proceeds of illicit trafficking. According to the petitioner, the
bank statements and transaction particulars were furnished during the
investigation. However, the bank accounts and the transactions therein
were neither established to be connected with the alleged offence nor
marked as exhibits or material objects during the criminal trial. The
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petitioner would further submit that the Trial Court, after considering the
evidence, acquitted all the accused by judgement dated 15.09.2023. The
petitioner relies upon the fact that the prosecution witnesses, including
the investigating officer examined as PW6, did not establish any
connection between the bank accounts of the petitioner or his family
members and the alleged illicit trafficking. It is further submitted that the
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1 respondent did not produce the bank accounts or the amounts lying
therein before the Trial Court in Form 95, nor was any specific direction
issued by the Trial Court for continuing the freezing of the accounts.
7. After the acquittal, the petitioner submitted a representation to
the concerned bank authorities, enclosing a copy of the judgement of
acquittal and requesting defreezing of the accounts. However, the Indian
Overseas Bank and Karur Vysya Bank declined to defreeze the accounts
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on the ground that they had not received a NOC from the 1 respondent.
According to the petitioner, approximately Rs.15 lakhs is lying in his
Indian Overseas Bank Account, which he is unable to access for his day
to day requirements and medical expenses. The continued freezing of the
accounts has also caused considerable hardship to his parents and other
family members. Hence, the petitioner submitted a representation seeking
withdrawal of the freezing instructions. Since the same was not
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favourably considered, he has approached this Court.
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8. The 1 respondent has filed a counter affidavit opposing the Writ
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Petition. According to the 1 respondent, the bank accounts of the
petitioner and his family members were not frozen arbitrarily. During the
course of investigation, the accounts were identified as requiring
examination, since there was a reasonable belief that the amounts lying
therein represented property derived from or traceable to illicit
trafficking. It is further submitted that, during the operation conducted on
26.09.2021, approximately 270.370 kgs of ganja, four two-wheelers and
the fishing boat “Nagai Meenavan” were seized by the Customs
Preventive Unit.
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9. The 1 respondent would submit that the freezing instructions
were issued through communications dated 01.10.2021 and 04.10.2021,
based upon the reasonable belief that the amounts lying in the bank
accounts represented proceeds of illicit trafficking. It is also brought to
the notice of this Court that, though the petitioner and the other accused
were acquitted by the Trial Court on 15.09.2023, the Department has
challenged the judgement of acquittal by filing a criminal appeal before
this Court, and the correctness of the acquittal is presently under judicial
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consideration. The 1 respondent would further contend that, in the
absence of any specific direction from the Trial Court, the respondent
cannot unilaterally withdraw the freezing instructions. It is also
apprehended that, if the bank accounts are defrozen at this stage, there is
possibility of the amounts being withdrawn or transferred, thereby
frustrating the proceeding under the NDPS Act. On the above grounds,
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the 1 respondent seeks dismissal of the Writ Petition.
10. Heard. Records perused.
11. The statutory power to freeze property is intended to prevent
the disposal, concealment or transfer of property suspected to have been
derived from illicit trafficking. At the same time, such power cannot be
exercised arbitrarily or continued indefinitely without satisfying the
statutory requirements. The mere fact that the petitioner was arrayed as
an accused in a case registered under the NDPS Act cannot automatically
lead to the conclusion that all the amounts lying in his bank accounts
constitute illegally acquired property.
12. Equally, the bank accounts maintained by the petitioner's
parents cannot be subjected to continued restraint merely on account of
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their relationship with the petitioner. The investigating agency must
establish an independent and legally sustainable basis for treating the
amounts in their accounts as illegally acquired property. It is not in
dispute that the Special Court, Thanjavur, by judgement dated 15.09.2023
in C.C. No. 62 of 2022, acquitted all the accused in the criminal case. The
petitioner relies upon the said judgement to contend that the prosecution
failed to establish the allegations and that the bank accounts were never
shown to have any connection with the alleged commission of the
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offence. However, the 1 respondent has stated that the Department has
preferred a criminal appeal challenging the judgement of acquittal. At the
same time, the mere pendency of an appeal against the judgement of
acquittal cannot, by itself, constitute a sufficient justification for
indefinitely continuing the freezing of bank accounts.
13. This Court is of the view that the investigating agency cannot
continue the freezing of bank accounts merely by relying upon the
original suspicion which existed at the time of registration of the criminal
case, without examining whether the statutory requirements for continued
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restraint are satisfied. The 1 respondent is therefore required to examine
each account independently and determine whether there is any material
to establish that the amounts therein represent illegally acquired property.
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This Court is also conscious of the fact that the release of amounts
genuinely connected with illicit trafficking may prejudice the statutory
proceedings. Therefore, an unconditional direction to defreeze all the
accounts without examining the relevant records would not be
appropriate.
14. In the light of the above discussion, this Court is of the
considered view that the impugned order dated 27.12.2023 requires
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reconsideration by the 1 respondent, particularly in view of the
subsequent judgement of acquittal and the specific claim that the bank
transactions have no connection with the alleged offence.
15. Accordingly, the impugned order dated 27.12.2023 is set aside
and the Writ Petition is disposed of with the following directions:
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(i) The 1 respondent shall consider the petitioner's representation
dated 20.09.2023 afresh, after examining the statutory requirements under
Section 68F of the NDPS Act, 1985.
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(ii) The 1 respondent shall independently examine the bank
accounts maintained by the petitioner and his parents and identify the
particular amounts, if any, which are supported by material indicating
that they represent illegally acquired property or proceeds of illicit
trafficking.
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(iii) If no valid statutory confirmation or other legally sustainable
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proceeding exists for continuing the restraint, the 1 respondent shall
forthwith issue necessary instructions to the concerned banks for
defreezing the respective accounts.
(iv) If any particular amount is found, on the basis of identifiable
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material, to be liable for proceedings under the NDPS Act, the 1
respondent shall take appropriate action in accordance with law, after
following the procedure prescribed under the Act, by affording an
opportunity of personal hearing to the petitioner and his parents, before
passing a fresh order.
(v) This exercise shall be completed and a reasoned order shall be
passed within a period of six weeks from the date of receipt of a copy of
this order.
(vi) The concerned banks shall act upon the fresh communication
issued by the competent authority and shall not insist upon any further
document except as required by law.
05-11-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
mar/skn
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To
1. The Superintendent of Customs,
Division Preventive Unit,
Customs Division,
Nagapattinam,
Nagapattinam District.
2. The Additional Public Prosecutor,
Madurai Bench of Madras High Court,
Madurai.
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WP Crl.(MD) No. 680 of 2026
K.GOVINDARAJAN THILAKAVADI, J.
mar/skn
WP Crl.(MD) No. 680 of 2026
05-11-2026
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