Criminal petitions

Bank account frozen by the police? Your options before the Karnataka High Court

By Ankur Tripathi, Advocate · 26 October 2026 · 2 min read

Many businesses and individuals learn that their bank account has been frozen only when a payment fails. Freezing is often done on a police request linked to an investigation, and the consequences can be severe. This article explains the framework and the possible remedies.

The legal basis

The police can seize property that may be alleged or suspected to have been stolen, or that is found in circumstances which create suspicion of the commission of an offence. This power is now in Section 106 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), corresponding to Section 102 of the earlier Code of Criminal Procedure. A freeze on a bank account is treated by courts as a form of seizure.

Reporting to the Magistrate

The Sanhita requires a police officer who seizes property to report the seizure to the Magistrate without delay. Courts have examined whether this was done, and when it was not, the legality of the freeze has been questioned.

Common problems

• The entire account is frozen when the alleged amount is only a small part of the balance
• The account holder was not told why, or the freeze is not linked to any identified offence
• Freezing continues for months without any progress in the investigation
• A business is unable to pay salaries, taxes and vendors

Remedies

1. Representation to the investigating officer, with documents showing the source of the funds
2. Application to the Magistrate to release or defreeze the account
3. A petition in the High Court, where the freeze is arbitrary, disproportionate or in breach of the statute
4. Partial release for essential expenses, where the Court considers it fair

Other agencies

The Enforcement Directorate and the GST authorities have their own statutory powers to freeze or attach property, with their own procedures and appeal routes. The right forum depends on which agency has acted.

What to prepare

• The bank's communication or the freezing request
• Account statements and proof of the source of funds
• The FIR or notice, if you have it
• Proof of the effect of the freeze on payroll, taxes and operations

Related: freezing of bank accounts and seizure of property.

This article is for general information only. It is not legal advice, and the law and its interpretation change. Please consult an advocate about your specific facts before acting.

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