Karnataka HC Quashes Sessions Court Orders To Defreeze Jar’s Accounts

The Karnataka High Court has overturned three orders from a Sessions Court that sought the release of gold and silver bullion and the defreezing of bank accounts tied to digital wealth management firm Jar. The High Court's decision, delivered on August 10, set aside orders issued on April 4 by the Principal City Civil and Sessions Judge in Bengaluru.

The court ruled that while police can freeze a bank account during an investigation, they must immediately inform the relevant Magistrate of the action. The court emphasized that police do not need prior permission from a Magistrate to freeze a bank account as a temporary measure under a specific legal provision. The ruling contrasts with Section 107 of the Bharatiya Nagarik Suraksha Sanhita, which involves a judicial process and could potentially lead to the forfeiture or return of alleged proceeds of crime.

The court suggested that requiring police to seek judicial approval for every bank freeze could hinder investigations, particularly in cybercrime cases where transactions can be swiftly transferred between accounts. The story was reported initially by Bar and Bench and Inc42 is awaiting comments from Jar.