Bengaluru, 13 August

The Karnataka High Court has upheld police powers to debit-freeze bank accounts during crime investigations under Section 106 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, without prior court permission.

Justice M Nagaprasanna clarified that police can freeze an account during an investigation but must immediately report the action to the jurisdictional Magistrate. The court also quashed earlier orders directing release of seized gold and silver and de-freezing of bank accounts in a case involving M/s JAR Gold Retail Pvt Ltd under the BUDS Act.

The court distinguished between Sections 106 and 107, observing that Section 106 protects suspected proceeds while Section 107 governs formal judicial attachment and forfeiture. Proceedings under Section 107 require approval from the Superintendent or Commissioner of Police, a court application, a 14-day show-cause notice and judicial hearing.

The court said requiring prior judicial permission for every account freeze could hamper investigations, particularly involving rapid digital transactions, as funds could be siphoned off before court proceedings conclude.