Practice area

Freezing of bank accounts and seizure of property

Petitions to defreeze bank accounts and recover property seized by the police, the Enforcement Directorate and tax authorities.

Bank accounts can be frozen, and property seized, during an investigation. For businesses and individuals, the effect is immediate and severe. The High Court hears petitions challenging freezing and seizure that are unjustified, disproportionate or procedurally flawed.

What this work involves

• Police freezing of accounts: challenges to action under Section 106 of the BNSS, which corresponds to the earlier Section 102 of the Code of Criminal Procedure
• Reporting to the Magistrate: examining whether the seizure was reported as the law requires
• Enforcement Directorate action: freezing, seizure and provisional attachment under the PMLA
• GST and tax authorities: provisional attachment of accounts and property
• Release of vehicles, cash and documents seized during investigation
• Partial defreezing to allow salaries, taxes and operational payments

Approach

The seizure order, the grounds and the relationship between the account and the alleged offence are examined. Petitions often seek defreezing of the account, or release of the amount that is not connected to the alleged offence.

Frequently asked questions

Can the police freeze my bank account without telling me?

Banks often act on a police request first. The law requires the seizure to be reported to the Magistrate, and affected persons can challenge freezing before the High Court or the Magistrate.

Can I get part of the frozen funds released for business needs?

Courts sometimes allow limited operation of the account for essential expenses, depending on the facts and the allegations.

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