Bank Account Frozen by Police: CrPC 102 / BNSS 106 and Your Position

What the provisions actually do

Section 102 CrPC and Section 106 BNSS concern the seizure of property suspected of being connected with an offence. The Supreme Court in State of Maharashtra v. Tapas D. Neogy held that a bank account can be “property” for this purpose and that its operation may be prohibited where the assets have a nexus with the offence. So it is not right to say the police can never restrict an account.

Section 91 CrPC and Section 94 BNSS are different: they are powers to summon documents or things. A notice issued solely under those provisions is a document-production notice and does not, by itself, confer power to freeze an account.

The case law on that distinction

Note: the extent of the police power to freeze accounts is currently before the Supreme Court in Suo Moto Writ Petition (Criminal) No. 3/2025, which was taken up because different High Courts have taken different views. The decisions below are ones account holders rely on as persuasive authority, not settled law, and the position may change.

• Shrinivas v. State of Karnataka, W.P. No. 2723 of 2023 (Karnataka High Court): the power to freeze was not available to the investigating officer under Section 91 CrPC; the relevant provision was Section 102, and the notice was quashed where compliance with Section 102(3) was not demonstrated
• Sri. Satish v. State of Karnataka, 2024:KHC:45996 (Karnataka High Court): where the officer had not invoked Section 102 CrPC at all, the account could not be frozen by a Section 91 notice
• Blue Sea Ventures LLP v. State of Andhra Pradesh, W.P. No. 5034 of 2026 (Andhra Pradesh High Court): Section 94 BNSS does not confer any power on the police to direct banks to freeze accounts, and attachment under Section 107 BNSS can only be effected on the order of the jurisdictional Magistrate

Reporting the seizure to the magistrate

A seizure under Section 102 CrPC or Section 106 BNSS carries an obligation on the police to report it to the jurisdictional magistrate. It is entirely reasonable to ask the bank and the investigating officer, in writing, whether that report was made and on what date.

Be careful how this is put. You will find claims online that a freeze automatically becomes invalid if a magistrate is not informed within two months, and that this comes from the MHA SOP. That is not an accurate statement of the position, and asserting it in a letter tends to undermine the rest of what you say. Ask the question; do not announce the conclusion.

Asking for a lien rather than a total freeze

Where a direction specifies a particular amount, several High Courts have said the bank should ordinarily restrict only that amount and permit the rest of the account to operate: the Karnataka High Court in Sri. Madhu v. IndusInd Bank Ltd. (W.P. No. 38362 of 2025), the Kerala High Court in M/s Arafa Trading Company v. South Indian Bank (2026:KER:21978), and the Madras High Court in W.P. 25631/2024.

This is fact-dependent. Courts have recognised exceptions where the account itself is under investigation or suspected of being a mule account. Make it as a reasoned request supported by these decisions, and enclose a copy of the judgment you rely on.

How to respond, in order

• Get the order or instruction, the FIR number and police station, the officer's name, the provision invoked, and the state, in writing from the bank, with an acknowledged copy for yourself
• Write to the investigating officer with your explanation and documents, and ask expressly for a No Objection Certificate to the bank
• Ask the bank, in writing, to confine any restriction to the amount specified in the direction
• Consider an RTI to the police CPIO asking whether any case or FIR is registered against you
• If the bank's own conduct is the problem (no reasons, no reply, whole balance held) the RBI Ombudsman is available for that, though it has no authority over the police
• An application to the court for variation or recall of the order, or a writ petition, is the remedy when the administrative route is exhausted, with an advocate

If the officer is in another state

Very common, and expensive if handled badly. Send your representation and documents by email and speed post and keep the receipts; state where you live and ask that the material be considered before any personal appearance is required; ask whether a statement can be recorded locally or by video conference.

If a formal notice or summons has been issued, do not ignore it and do not treat an email as a substitute for understanding what it requires. Take advice from an advocate practising in that jurisdiction before responding. A writ petition, if it comes to that, is generally filed in the High Court having jurisdiction over you, which is part of why it is sometimes the practical answer to an unreachable officer far away.

When this is no longer a do-it-yourself problem

Writing letters is the right approach when you are trying to find out what happened, get the reference numbers, ask for a proportionate lien, and request a No Objection Certificate. Draw a line, though, when the matter stops being administrative.

• Reasonable to handle yourself: asking the bank who froze the account and under what authority, explaining a transaction, submitting income and identity proof, requesting an NOC, and escalating a grievance
• Get an advocate: you have been summoned as a suspect or accused, there is a threat of arrest, the police want a detailed signed statement about conduct that may itself be unlawful, there are multiple FIRs, the amounts are large, or the Enforcement Directorate / PMLA is involved
• Also get an advocate before any court step: a writ petition or an application to vary or recall a freeze order is not a self-help exercise

Frequently asked questions