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Bank accounts cannot be frozen under the Unlawful Activities (Prevention) Act, 1967.
Unless the Centre conducts an inquiry and arrives at a subjective satisfaction of the funds in those accounts having been used or intended to be used for a banned organisation, the Madras High Court has ruled.
A Division Bench of Justices M.S. Ramesh and Sunder Mohan held so while quashing an executive order freezing the savings bank account of the Chennai-based Tamil Nadu Development Foundation Trust that was
suspected to be aiding Popular Front of India (PFI), a banned organisation under UAPA.
The judges pointed out that Section 7 of UAPA empowers the Centre to prohibit the use of funds of an unlawful association and Section 7(1) prescribes the procedures to be followed before passing such prohibitory orders.
As per these provisions, it is mandatory to have a prior inquiry and a subjective satisfaction.
UAPA Act
The UAPA, is an Indian law enacted in 1967.
Here's a summary of the Act:
Purpose: Aims to prevent unlawful activities of individuals and associations, and deal with terrorist activities.
Key provisions:
Allows the government to designate an organization or individual as terrorist if they are involved in terrorism.
Defines terrorist act as activities intended to threaten the unity of India or create a sense of fear.
Grants special powers to law enforcement for investigating and prosecuting terrorist activities.
Criticism of UAPA
The Act has been criticized for giving broad powers to the government.
This act can potentially lead to misuse.
Some argue that it can infringe on civil liberties.
Recent amendments
The Act has been amended several times, most recently in 2019, to include individuals on the terrorist list.
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