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NC: 2026:KHC:19510 WP No. 27650 of 2025

HC-KAR

IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 8^TH DAY OF APRIL, 2026

BEFORE

THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

WRIT PETITION NO. 27650 OF 2025 (GM-RES)

BETWEEN:

SONU KUMAR AGED 35 YEARS,

S/O ROSHAN PAL, UDAIHERI, HARIDWAR,

UTTARKHAND 247656

…PETITIONER (BY SRI. SATHIES KUMAR S.,ADVOCATE)

AND:

1. THE STATE OF KARNATAKA Digitally STATION HOUSE OFFICER, signed by

KGF CEN CRIME POLICE STATION, NAGARAJA B M KGF DISTRICT Location: KOLAR 563101

HIGH COURT OF KARNATAKA 2. HDFC BANK LTD

NEHRU COLONY, DEHRADUN

UTTARAKHAND 248001

…RESPONDENTS

[BY SRI. ADITYA DIWAKAR, AGA FOR R1 SRI. FRANCIS XAVIER, ADVOCATE FOR R2(VK NOT FILED)]

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THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECT RESPONDENT NO. 1 AND 2 TO IMMEDIATELY CONVERT THE COMPLETE DEBIT FREEZE ON THE PETITIONERS BANK ACCOUNT TO A LIEN FREEZE ONLY ON THE DISPUTED AMOUNT OF INR 10,000 (RUPEES TEN THOUSAND ONLY) THEREBY ALLOWING THE PETITIONER ACCESS TO HIS REMAINING LEGITIMATE FUNDS IN THE ACCOUNT. DIRECTIONS TO RESPONDENT NO. 2 TO COMPLY WITH THE DIRECTIONS OF RESPONDENT NO.1 REGARDING MODIFICATION OF ACCOUNT FREEZE FROM COMPLETE DEBIT FREEZE TO LIEN FREEZE ON

THE SPECIFIED DISPUTED AMOUNT ONLY.

THIS PETITION, COMING ON FOR PRELIMINARY HEARING FRESH MATTERS LIST, THIS DAY, ORDER WAS MADE THEREIN

AS UNDER:

CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM

ORAL ORDER

Captioned petition is filed by a customer of a

respondent No. 2-bank, being aggrieved by the action of respondent No. 2 in debit freezing petitioner's account on

a communication received from the Investigating Agency.

2. This matter was adjourned on the previous date

of hearing to enable the learned Additional Government Advocate appearing for the Investigating Agency to secure instructions as to the tentative quantum of the alleged

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crime proceeds, which formed the basis for issuance of communication to the respondent–Bank resulting in debit

freezing of the petitioner’s account.

3. Today, the learned AGA, on instructions,

submits that the Investigating Agency has quantified the alleged crime proceeds at Rs.10,000/-. The said

submission is placed on record.

4. Having heard the learned counsel for the parties

and on perusal of the material on record, this Court proceeds to examine the legality and proportionality of the action impugned. This Court has, in a catena of cases, consistently held that debit freezing of a bank account of a citizen has serious civil and financial ramifications. While it is open to the Investigating Agency, in a given set of circumstances, to take necessary measures to secure and preserve the alleged crime proceeds particularly where there exists a reasonable apprehension of dissipation of

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such proceeds, the action must satisfy the test of

proportionality.

5. It is often noticed that upon issuance of a

communication by the Investigating Agency, the Bank, as a matter of course, proceeds to completely freeze the account, thereby rendering the account inoperative and depriving the account holder of access to legitimate funds. Such an action, though intended to secure the alleged proceeds of crime, results in undue hardship and prejudice to the account holder, especially when the alleged tainted amount is capable of precise identification and

segregation.

6. In the case on hand, the Investigating Agency

itself has quantified the alleged crime proceeds at Rs.10,000/-. Therefore, the ends of justice would be adequately met if a lien is marked to the said extent, thereby securing the interest of the prosecution. At the same time, permitting the petitioner to operate the

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NC: 2026:KHC:19510 WP No. 27650 of 2025

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account beyond the said amount would strike a just balance between the investigative needs of the State

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