Trinamool Congress MP Abhishek Banerjee’s frozen bank account has been restored after the Calcutta High Court intervened in the matter, while the court cautioned banks against freezing customers’ accounts without giving them prior notice.
The account had been frozen over KYC-related issues, according to the bank. Banerjee challenged the move before the High Court. Justice Krishna Rao’s bench disposed of the case on Monday after the bank completed his KYC formalities and restored the account.
Following the court’s intervention, a bank representative visited Banerjee’s residence to complete the KYC process. Banerjee’s lawyer, Ayan Bhattacharya, questioned why the account was frozen without informing his client. He told the court that Banerjee had never refused to complete the KYC process. The lawyer also pointed out that no photograph of Banerjee was taken during the KYC procedure and asked why the bank had proceeded to freeze the account without first notifying him.
He urged the court to ensure that the bank does not repeat such action and also sought a penalty against the bank for allegedly causing harassment.
‘Customer Should Be Informed Before Account Is Frozen’: Cal HC
Justice Krishna Rao made it clear that the issue was not specific to Banerjee and that the same principle should apply to all bank customers.
The court observed that “if there is a need to freeze an account, the customer should be informed beforehand.”
The judge further said the bank should clearly explain the reason for the proposed action and give the customer an opportunity to complete the required formalities.
In this case, the court observed that the bank could have simply told Banerjee to complete his KYC and warned him that failure to do so could result in restrictions on his account.
The judge asked the bank authorities to “keep this in mind in future.”
Bank: Account Was ‘Temporarily’ Frozen
Representing the bank, its lawyer said the account had been frozen only temporarily and that the action was not deliberate.
The bank told the court that information relating to Banerjee’s involvement in another case had reached it, following which the account was temporarily restricted as part of its normal procedure.
The bank also confirmed that the account had since been restored.
After hearing the explanation, the court accepted the position and disposed of the case.
Dispute Emerged After Foreign Travel Permission
The controversy came to light after Banerjee was granted permission by the Supreme Court to travel abroad for eye treatment.
Soon afterwards, it emerged that his personal bank account had been frozen. His lawyers alleged that the action had been taken without informing him and that two of his credit cards had also been blocked.
Banerjee’s legal team also questioned the KYC-related action, pointing out that his KYC was reportedly valid until December 2026.
The court had earlier questioned why Banerjee had not been informed about the KYC requirement and why the process could not be completed online.
The bank explained that once the account was frozen, online KYC was no longer possible. A bank representative subsequently visited Banerjee’s home and completed the process.
With the account restored, the High Court has now closed the case. But its observations underline a broader principle: banks should not freeze a customer’s account without first informing them and giving them a reasonable opportunity to resolve the issue.
