CH NEWS
BENGALURU
The Karnataka High Court has upheld the statutory authority of police officers to debit-freeze bank accounts during crime investigations under Section 106 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, without obtaining a prior court order.
Justice M. Nagaprasanna passed the ruling, according to Karnataka Cyber Command Director General of Police Pranab Mohanty. He said police are required to freeze the account during an investigation and report the action immediately to the jurisdictional Magistrate.
The judgment quashed earlier orders of the Principal City Civil and Sessions Court, Bengaluru, which had directed the release of seized gold and silver and the de-freezing of bank accounts in a case registered by Koramangala Police Station against M/s JAR Gold Retail Pvt Ltd under the Banning of Unregulated Deposit Schemes (BUDS) Act.
The High Court clarified the distinction between Sections 106 and 107 of the BNSS. While Section 106 enables police to take immediate protective action to prevent suspected proceeds from being siphoned off, Section 107 deals with formal judicial attachment and forfeiture.
The court observed that insisting on prior judicial permission for every account freeze could hamper investigations, particularly in cybercrime and digital financial fraud cases, where funds can be rapidly transferred.
“Section 106 BNSS serves as an immediate, protective mechanism for police officers to prevent suspected funds from being siphoned off.” Pranab Mohanty, DGP, Karnataka Cyber Command
Key ruling
The Karnataka High Court has clarified that police can debit-freeze bank accounts during investigations under Section 106 BNSS without prior court permission. However, officers must report the action immediately to the jurisdictional Magistrate. Section 107 separately governs judicial attachment and forfeiture, requiring prescribed approvals and court proceedings. The ruling is significant for cybercrime investigations, where rapid action may help prevent suspected proceeds from being transferred or withdrawn before judicial intervention.
