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2017 (3) TMI 705 - HC - CustomsSeizure of Bank Accounts - smuggling of Gold - there is no reference to any provision of law under which the impugned letters to the banks have been issued. No order under section 110 has been alleged to have been passed or produced. The counter affidavit merely states that the bank accounts have been seized as investigation is going on - whether the same are to be unconditionally de-frozen or the petitioner is to be put to some terms? - Held that: - Investigations are going on. Certainly, DRI would be entitled to take appropriate steps, in accordance with law, with regard to the imported Gold that is alleged to have been diverted and its sale proceeds, if the competent officer of the DRI is of a reasonable belief that the sale proceeds are lying in a particular account or accounts. Until such time that there is such a reasonable belief expressed, there can be no justification in a blanket order of freezing of bank accounts that are cash credit accounts in which there is no credit balance and the effect of which is that the entire business operations of the petitioner come to a standstill. The impugned letters dated 23.12.2016, issued by the Deputy Director DRI is liable to be quashed in so far as they relate to the cash credit accounts and the Bank accounts that are cash credit accounts are liable to be de-frozen - The petitioner shall be permitted to operate the cash credit accounts in Respondents No. 3 and 4 Banks - The petitioner shall, within a period of one week, furnish a security of ₹ 10,00,00,000/- in the form of an unencumbered property, over and above the amount of ₹ 7.5 Crores in the form of gold and currency seized by the Respondents - petition disposed off - decided partly in favor of petitioner.
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