Legal Standoff: Malabar Gold Challenges Account Freeze

The Delhi High Court has asked the Centre to justify the freezing of Malabar Gold's bank accounts due to alleged involvement in fraudulent transactions. Authorities are to reveal if Malabar Gold was the subject of a complaint. The company's operations have been impacted, leading to legal action.

The Delhi High Court has mandated an explanation from the Centre regarding the suspension of two bank accounts belonging to jewellery retailer Malabar Gold, following allegations of its involvement in a fraudulent transaction.

Justice Sachin Datta has instructed the Ministry of Home Affairs (MHA) and the Indian Cyber Crime Coordination Centre (I4C) to confirm whether Malabar Gold is under investigation due to any official complaints.

Facing business disruption, Malabar Gold's legal petition seeks to reverse directives issued to State Bank of India and HDFC Bank, which froze its accounts. The court has requested a detailed status report to clarify the grounds for these actions by April 3, with a follow-up hearing scheduled for April 21.

(With inputs from agencies.)