#Investigative Powers

Bombay High Court rules that investigative agencies cannot freeze bank accounts under Section 102 CrPC without establishing a direct link to the alleged offence. The court struck down a Rs. 6.55 crore bank guarantee condition for de-freezing, emphasizing that criminal proceedings cannot substitute civil recovery and must respect the presumption of innocence.

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.