Unauthorized Transfer of Funds from Borrower’s Frozen Bank Account by State Financial Enterprise Violates Article 300A: Kerala High Court

The Kerala High Court has issued an interim order restraining the Kerala State Financial Enterprises (KSFE) and its Recovery Officers from transferring amounts from borrowers’ frozen bank accounts to third-party accounts. Justice V.G. Arun observed that such actions would violate the constitutional protection against deprivation of property without authority of law under Article 300A of the Constitution of India. Petitioners Challenge Account Freezing The interim stay was granted in a…