1 week ago
Calcutta High Court Restores Banerjee’s Frozen Account and Cards
Abhishek Banerjee’s bank account and cards were temporarily blocked.
The bank said it needed more KYC information, which helps confirm a customer’s identity.
Banerjee’s lawyers said he was not warned before the services were stopped.
They also said his KYC was reportedly valid until December 2026.
The bank said its system found a high-risk factor using information from outside sources.
A bank official later collected the needed documents at Banerjee’s home.
The bank then restarted his account and cards.
The High Court closed the case but told banks to warn customers before taking similar action.
A private bank reactivated Abhishek Banerjee’s bank account, debit card and credit cards after receiving his KYC documents.
The Calcutta High Court disposed of Banerjee’s petition challenging the freezing of his account and cards.
Banerjee’s lawyer said the services were frozen on August 10 without prior notice, shortly after he received permission to travel abroad for medical treatment.
The bank said its central team automatically froze the account after third-party data indicated a high-risk factor and that an email was generated.
Justice Krishna Rao said banks should generally notify customers and seek KYC information before freezing accounts or blocking cards.
- Who
- Trinamool Congress MP Abhishek Banerjee, his lawyers, a private bank and the Calcutta High Court.
- What
- The High Court disposed of Banerjee’s challenge to the freezing of his account and blocking of his debit and credit cards after the bank restored them following a KYC update.
- Where
- The case was heard in the Calcutta High Court, and the KYC process was completed at Banerjee’s residence.
- When
- The restrictions were reported on August 10; the petition was disposed of on Monday, after an earlier hearing on August 20.
- Why
- The bank said it sought additional KYC information after third-party data led its central team to identify a high-risk factor; Banerjee’s lawyers challenged the lack of prior notice and the procedure.
Banerjee’s Legal Position
Bank’s Explanation
Whether proper KYC procedure was followed
Banerjee’s Legal Position
Banerjee’s lawyer argued that RBI guidelines permit partial freezing in phases only after repeated reminders and failure to provide the required KYC information.
Bank’s Explanation
The bank’s lawyer said the bank did not violate RBI guidelines and had only sought additional KYC documents.
Whether advance notice was required
Banerjee’s Legal Position
Banerjee’s lawyers said the account and cards were blocked without prior notice, questioned why online KYC was unavailable and said his KYC was reportedly valid until December 2026.
Bank’s Explanation
The bank said notices seeking KYC documents are issued and that an email was generated after the account was automatically blocked.
Reason for the freeze
Banerjee’s Legal Position
Banerjee’s lawyers highlighted that the restrictions came on August 10, shortly after the Supreme Court permitted him to travel abroad for medical treatment.
Bank’s Explanation
The bank said third-party information and links to cases initiated by the Enforcement Directorate led its central team to identify a high-risk factor as part of a routine procedure.
Key facts
- Petitioner
- Abhishek Banerjee, the Diamond Harbour MP and Trinamool Congress leader
- Court
- Calcutta High Court, before Justice Krishna Rao
- Services affected
- A personal bank account, debit card and credit cards; one report specified two blocked credit cards
- Restriction date
- August 10
- Bank’s explanation
- The account was automatically frozen after third-party data and a central-team assessment indicated a high-risk factor
- Resolution
- The account and cards were reactivated after Banerjee submitted the required KYC documents
- Court guidance
- Banks should generally alert customers and seek KYC information before freezing accounts or blocking cards
Quotes
Ayan Bhattacharya
Advocate representing Abhishek Banerjee before the Calcutta High Court
“The bank authorities did not go to my client to take his photograph, which is the protocol, but they wanted to have my client’s photograph with them. This is strange.”
telegraphindia.com
The bank’s counsel
Lawyer representing the private bank in the court proceedings
“He (Abhishek) was never asked to appear physically at the bank. His accounts were temporarily closed. There was no intention to harass him.”
telegraphindia.com
Sources
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