PANJIM: In a major ruling defending the constitutional rights of Indian citizens against international regulations, the High Court of Bombay at Goa has directed two private banks to defreeze the bank accounts of a senior marine officer whose accounts were frozen following an alleged alert linked to the United States Office of Foreign Assets Control (OFAC) sanctions list.
The petitioner, Capt Lincoln Francisco Viegas of Xirro, Carmona, had approached the High Court seeking the restoration of access to his accounts and permission to operate them without restrictions. He also sought monetary compensation of Rs 50 lakh for the alleged financial losses and inconvenience caused by the freezing of his accounts, besides seeking directions to ensure that he could safely return to his seafarer contract.
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Viegas, who has over two decades of experience in the international commercial shipping industry, contended that his Non-Resident External (NRE) account with one bank was blocked in May 2025.
The petitioner discovered the restriction when his debit card transaction was declined. He claimed that the bank subsequently informed him that his account had been flagged because he had joined a vessel through Iran, which is under comprehensive US sanctions.
In an email dated June 5, 2025, the bank informed Viegas that his account was flagged due to his recent seafaring contract, during which he joined a vessel through Iran. The bank reportedly referred to its Know Your Customer/Anti-Money Laundering (KYC/AML) policy and advised him to seek the removal of his name from the OFAC list before the account could be reactivated.
Viegas disputed the basis of the action, maintaining that he had no connection to any sanctioned organisation or entity. He stated that his name appeared on the OFAC Specially Designated Nationals (SDN) list in connection with the vessels San Marino and Nissos Lines Incorporated, neither of which, according to him, had any association with him.
Viegas further claimed that his second NRE account with another private bank was blocked in July 2025. The petitioner said the freezing of the accounts left him unable to access his salary to meet household expenses, education fees, insurance payments, EMIs, and other financial commitments.
Viegas also approached the Reserve Bank of India (RBI) Ombudsman, the Ministry of External Affairs (MEA), and the Directorate General of Shipping seeking intervention. He noted that he had filed a petition directly with OFAC seeking the removal of his name from the sanctions list.
Arguing on behalf of Viegas, Adv Nihal Pramod Kamat stated that freezing the accounts without notice, a hearing, or a reasoned order was arbitrary and violated his constitutional rights. He contended that a foreign sanctions list cannot automatically form the basis for freezing the accounts of an Indian citizen without due process under Indian law.
The High Court, after hearing the matter, directed the two private banks to defreeze the accounts, providing relief to the marine officer who had claimed that the restrictions caused severe financial hardship and uncertainty over his future employment at sea.
The Court has posted the matter for further consideration on August 24.
