Nivara Infradevelopers LLP v. Union of India & Others

Background of the Case

In this important judgment, the petitioner, Nivara Infradevelopers LLP, challenged the legality of provisional attachment orders issued by the GST authorities under Section 83 of the CGST Act, whereby the petitioner’s bank accounts were attached during the course of investigation proceedings.

The dispute arose when the department issued a communication in Form GST DRC-23 and, on the very same day, proceeded to issue orders provisionally attaching the petitioner’s bank accounts. As a consequence of the attachment, the petitioner was prevented from freely operating its bank accounts, resulting in severe disruption of its business activities, financial transactions, and day-to-day operations.