Srinagar, Apr 03: A court in Srinagar has ordered de-freezing of two bank accounts of an Anantnag-based educational institution, holding that no direct link was established between the funds and the alleged offences under investigation.
The order was passed by the Additional Sessions Judge, TADA/POTA, designated under the NIA Act, while allowing an application filed by Jamiat-us-Sualihaat, an institution running a girls’ school with boarding facilities in Marhama area of Bijbehara.
The accounts had been frozen during the investigation of an FIR registered by Police Station CIK Srinagar under various sections of IPC and UAPA, relating to allegations of criminal conspiracy, forgery, cheating, and suspected links with a banned organisation.
In its plea, the institution, represented by Adv Yavar Ramzan, argued that the freezing of accounts had severely affected its functioning, including payment of staff salaries and continuation of educational activities. It maintained that the funds primarily comprised school fees and small voluntary contributions meant for promoting girls’ education.
The prosecution opposed the plea, alleging that the institution was being run as a proxy of a proscribed organisation and that the accounts could have been used to channel funds for unlawful activities.
After examining the case record and investigation report, the court noted that most deposits in the accounts were made by parents of students and small individual contributors. It also observed that no incriminating material had surfaced linking the funds directly to unlawful activities.
The court further recorded that more serious charges under relevant provisions of the UAPA, including those relating to unlawful activities and membership of a terrorist organisation, had been proposed to be dropped during investigation.
Observing that the investigation has remained pending for nearly four years without filing of a chargesheet, the court held that continued freezing of accounts was disproportionate and causing undue hardship to students, staff, and the institution.
Accordingly, the court directed immediate de-freezing of the accounts, subject to conditions. These include maintaining detailed financial records, restricting large transactions without prior intimation, and ensuring funds are used strictly for educational and operational purposes.
The institution has also been directed to cooperate with the investigation and furnish transaction details as required, while the bank has been asked to share monthly statements with the investigating agency for monitoring.
The court said that the observations made in the order are limited to the disposal of the application and will not affect the merits of the ongoing investigation.
