#proportionality in investigation

The Punjab & Haryana High Court ruled that banks cannot freeze accounts based solely on law enforcement directions without a Magistrate’s order under BNSS Section 107 or an FIR naming the account holder. The court emphasized proportionality, holding that blanket freezes disproportionately harm innocent individuals, especially when no direct involvement in alleged offenses is established.

The Punjab & Haryana High Court has ruled that law enforcement agencies cannot direct banks to freeze accounts without a magistrate’s order under BNSS Section 107, even when a small sum is flagged as suspicious. This sets a critical precedent protecting the right to livelihood and ensures financial restrictions are proportionate, reasoned, and legally authorized-not merely administrative.