Karnataka HC upholds police power to freeze bank accounts under BNSS

The Karnataka High Court has upheld the authority of police to freeze bank accounts during investigations under Section 106 BNSS without a prior judicial order, a move seen as vital for tackling swift digital financial frauds and cybercrime.

In a landmark decision on the operation of the Bharatiya Nagarika Suraksha Sanhita, 2023 (BNSS), the High Court of Karnataka, presided over by Justice M. Nagaprasanna, has upheld the statutory authority of police officers to debit-freeze bank accounts during crime investigations under Section 106 BNSS without obtaining a prior judicial order, said Pranab Mohanty, Director General of Police, Karnataka Cyber Command, Bengaluru.

High Court Quashes Lower Court Order

The police official said that under this provision, police officers are required only to freeze the account during investigation and report the action forthwith to the jurisdictional Magistrate. The judgment explicitly quashed earlier orders passed by the Principal City Civil and Sessions Judge, Bengaluru, which had directed the release of seized gold/silver and the de-freezing of bank accounts in connection with Crime No. 25/2026 of Koramangala Police Station, a case involving M/s JAR Gold Retail Pvt Ltd under Sections 21(1) and 21(2) of the Banning of Unregulated Deposit Schemes (BUDS) Act, 2019, an official statement issued by him read.

Distinction Between Investigative and Judicial Powers

"High Court clearly delineated the functional boundary between statutory investigative powers and judicial adjudication, observing that Section 106 preserves property while Section 107 adjudicates attachment. Section 106 BNSS serves as an immediate, protective mechanism for police officers to prevent suspected funds from being siphoned off. In contrast, Section 107 BNSS governs formal judicial attachment and permanent forfeiture, requiring Superintendent/Commissioner of Police approval, formal application to the Court, a 14-day show-cause notice, and full judicial hearing," the statement added.

Boost for Cybercrime Investigations

This judicial clarification is of vital importance to law enforcement, particularly in swift digital financial frauds and cybercrime investigations, official said.

The High Court emphasized that requiring prior court permission for every account freeze would severely cripple police efforts, as victim funds would vanish before a formal judicial process could be completed, leaving investigators with nothing more than an order of attachment over an empty account.

By affirming that police action under Section 106 BNSS remains valid and independent of Section 107 proceedings, the High Court has reinforced the state's capacity to protect financial victims and secure proceeds of crime effectively, DGP Mohanty said. (ANI)

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