|Karnataka High Court
Blanket Bank Account Freezes Without Specified Crime or Amount Violate Proportionality | Karnataka HC Quashes Order Under Khalsa Medical Store Doctrine : Karnataka HC
The Karnataka High Court struck down a police-directed bank account freeze that lacked any specification of the alleged crime, amount involved, or factual nexus to the account holder, affirming that such coercive measures must satisfy the triple test of legality, necessity, and proportionality. This ruling reinforces that financial freezing is not a default investigative tool and protects small business owners from arbitrary state action under Article 21 and 300A.