MP HC Unfreezes Anas Sheikh’s Bank Account, Keeps Disputed ₹20,000 in FD Pending Magistrate’s Order Within 3 Months

The petitioner filed a writ petition under Article 226 seeking removal of the hold/freeze on his bank account.

He relied on Malcolm Murayis & Ors. v. State Bank of India & Ors., W.P. No. 1100 of 2024, and on the guidelines concerning frozen accounts and the Government’s Standard Operating Procedure (SOP) discussed in Archana v. State of Madhya Pradesh & Ors. The disputed amount identified in this petition was Rs. 20,000.

The Court applied the approach in Malcolm Murayis, under which a disputed amount may be retained in a fixed deposit pending lawful action, while the remaining account may be operated; absent an order of the competent Judicial Magistrate within three months, the fixed deposit may be withdrawn by the account holder after informing the police agency.

It also applied Archana, which discusses the Ministry of Home Affairs SOP dated 10 April 2026 and requires proportionate, reasoned action when bank accounts are frozen, including consideration of whether a lien or partial freeze can adequately secure the suspected amount. The Court referred to proceedings under the relevant provisions of the BNSS or other applicable law, without identifying a particular BNSS section.

The Court considered the earlier decisions and the SOP-based framework applicable to account freezes, and held that Malcolm Murayis and Archana applied mutatis mutandis.

It balanced preservation of the disputed Rs. 20,000 against the petitioner’s ability to use the rest of the account: the disputed sum was to be kept in a fixed deposit, while the account itself was to be unfrozen. The fixed deposit would remain subject to orders of the competent Judicial Magistrate within three months, failing which the petitioner could seek its release after intimating the police agency.

That amount could be liquidated only after orders of the competent Judicial Magistrate within three months; if no such order was passed within that period, the petitioner could withdraw the fixed-deposit amount under intimation to the police agency.