MP High Court Orders SBI to Unfreeze Woman’s Account Holding Rs 2 Lakh Linked to Fraud

The MP High Court in Lucknow has directed the State Bank of India (SBI) to lift a freeze on a woman’s bank account that had Rs 2 lakh blocked due to alleged fraud connections. The court’s order came after a petition filed by the account holder, who claimed that the freeze was imposed without sufficient evidence. The bank had cited a regulatory directive that required the account to be held in suspense pending an investigation into potential fraud. The High Court found that the bank had not provided adequate proof of any wrongdoing and that the account holder was entitled to access her funds.

SBI is now required to release the blocked amount and restore full access to the account immediately. The bank has stated that it will comply with the court’s directive and will review its internal procedures to prevent similar incidents. The case highlights the importance of due process in financial institutions when dealing with allegations of fraud.