Quick Summary: The Bombay High Court decided that investigators can't freeze bank accounts under Section 106 of the Bharatiya Nagarik Suraksha Sanhita (BNSS) without the right authority. The court stressed the importance of following legal steps.
In several cases, including one by Mr. Surendra Ramrao Geed, the Bombay High Court looked into whether investigators could freeze bank accounts under Section 106 of the BNSS. The accounts were frozen because of suspected online fraud, but the court found that the investigators went too far.
All the petitioners’ accounts were frozen because of alleged online fraud. However, the court found that in many cases, the banks acted without proper instructions from the investigators. The judges, Anil L. Pansare and Raj D. Wakode, were puzzled by these actions.
"It is a mystery as to how the Bank chose to freeze the accounts on their own."
The court mentioned earlier decisions, including one by the Kerala High Court, which made it clear that freezing accounts under Section 106 is not allowed. The Kerala High Court had pointed out that the BNSS replaced older laws but did not permit freezing accounts without a judge's order.
The court pointed out that according to Section 107 of the BNSS, only a judge can order the taking of property linked to criminal activity. This makes sure that the right legal steps are followed to protect both evidence and people’s rights.
"Seizure under Section 106 can be carried out by a police officer, and an after-the-fact report submitted to the Judge."
Banks can hold disputed amounts but cannot freeze accounts just based on messages from investigators. The court encouraged banks to follow the 'Citizen Financial Cyber Frauds Reporting and Management System' guidelines.
The court canceled the orders that froze accounts under Section 106, stressing that the right legal channels must be used for such actions. The petitions were partially approved, setting an example for future cases.
"The orders passed under Section 106 of the BNSS in respective petitions freezing the accounts of the petitioners are canceled and set aside."
This judgment reinforces the importance of following legal procedures and protects citizens from unauthorized actions on their bank accounts.
