Authority: High Court at Calcutta (Constitutional Writ Jurisdiction) – Appellate Side

Order Date: 10 September 2026

Case Overview

  • Petitioner: Sanjiv Kumar Dalmia, sole proprietor of “Sanjeev Vyapaar”, current account No. 43061577012 with State Bank of India, Chetla Branch, Kolkata.
  • Respondents: State Bank of India (SBI) and Reserve Bank of India (RBI).
  • Petition filed (W.P.A. No. 13210 of 2026) seeking removal of partial debit freeze imposed on 19 March 2026.
  • Account was partially frozen without prior notice; petitioner’s inquiries via email and legal notice received no substantive explanation.
  • Bank’s Proactive Risk Management (PRM) Cell, Patna, flagged the account as a suspected “money mule” on 8 April 2026; earlier, Centralized Cyber Cell had listed the account on 19 March 2026.
  • Physical verification of petitioner’s premises conducted on 27 March 2026 (documents) and 6 April 2026 (godown); inspection revealed business activities (scrap trading) inconsistent with trade licences for cotton fabric and iron‑steel.
  • Bank filed a Suspicious Transaction Report (STR) on 24 April 2026 and forwarded it to the Financial Intelligence Unit (FIU‑IND); however, the court notes no STR was actually submitted.
  • RBI Master Direction DBR.AML.BC. No.81/14.01.001/2015‑16, Clause 59, requires banks to monitor and report money‑mule accounts but does not expressly empower freezing.
  • On 19 March 2026, Ninja Ferro Tec Private Limited, represented by Managing Director Udbhav Dalmia, claimed an erroneous credit of Rs 10,00,000 to the petitioner’s account and requested reversal.
  • Bank’s balance on that date was Rs 10,01,509.14; the disputed amount would leave Rs 1,509.14 if reversed.
  • Bank has held Rs 10 lakh in lien, citing the disputed transfer, but has not sought clarification from the petitioner.

Final Outcome

  • The Court finds no evidential basis for the partial freeze on the allegation of money‑mule activity.
  • SBI is directed to immediately defreeze the petitioner’s account, retaining the disputed Rs 10 lakh as a lien.
  • The bank must decide the disposition of the Rs 10 lakh after giving both the petitioner and Ninja Ferro Tec Private Limited an opportunity of hearing within six weeks of receipt of this order.
  • The writ petition (WPA No. 13210 of 2026) is disposed of.

Topics: Banking Regulation, Money Mule, Account Freeze