Delhi High Court orders lifting of fixed deposit lien against alternate security measures

The Delhi High Court issued an order directing the release of fixed deposit receipts amounting to Rs 84.88 crore that had been placed under a lien. This relief was granted conditional upon the provision of a post-dated cheque valued at Rs 50 crore and an explicit legal undertaking that restricts any subsequent transfer of assets by the petitioner.

This decision is significant as it demonstrates judicial willingness to modify stringent recovery actions by tax authorities when alternative security is furnished. It offers targeted relief to litigants facing severe liquidity constraints due to attached bank instruments.

Affected parties navigating similar tax disputes should prepare appropriate undertakings and financial instruments as stipulated by the court order to seek interim relief and secure the release of attached funds.