Court holds entire account freeze unjustified under Bharatiya Nagarik Suraksha Sanhita, 2023 Section 106; directs Axis Bank to lift freeze except lien on Rs. 2,253 transaction disputed in cybercrime investigation
In a significant judgment delivered on September 30, 2026, the Calcutta High Court, presided over by Mr. Justice Rishad Medora, addressed the issue of bank account freezing under the newly enacted Bharatiya Nagarik Suraksha Sanhita, 2023. The petitioner, Sohel Molla, a small businessman operating through the proprietorship "ROHAN RETAIL," approached the Court seeking relief from the freezing of his entire bank account at Axis Bank, Dalhousie Branch, Kolkata, following a police notice.
The controversy arose when the Inspector of Police from the Cyber Crime Wing, Central Branch, Tambaram Commissionerate, Tamil Nadu, issued a notice dated May 8, 2025, under Section 106 of the Bharatiya Nagarik Suraksha Sanhita, 2023. The notice directed the bank to "lien mark" a specific disputed amount of Rs. 2,253/- related to a single transaction dated August 22, 2024, but also effectively resulted in the freezing of the petitioner's entire bank account. The petitioner contended that such a sweeping freeze was unwarranted and caused him severe financial hardship, given that his business operations and financial transactions heavily relied on the said account.
Despite repeated attempts by the petitioner to seek clarification and revocation of the freeze, the police authority failed to respond or appear in Court, undermining the transparency and propriety of the enforcement action. The Axis Bank, adhering to the police directions, maintained the freeze pending official revocation.
After considering the submissions, the Court found no justification for freezing the entire bank account when the police notice specifically related only to one transaction and a modest disputed sum of Rs. 2,253/-. The Court noted the lack of response from the investigating authority and expressed concern over the absence of rationale behind the blanket freeze.
Consequently, the Court directed Axis Bank to immediately de-freeze the petitioner's entire bank account, allowing the petitioner to resume his business and financial activities. However, the Court permitted the lien marking to continue solely on the disputed amount of Rs. 2,253/-, thereby balancing the interests of the investigation and the petitioner's right to financial freedom.
This judgment highlights the judiciary's insistence on proportionality and procedural fairness in enforcement actions under the Bharatiya Nagarik Suraksha Sanhita, 2023, particularly in cases involving financial restrictions. It underscores that freezing an entire bank account without adequate justification, especially in matters involving minor disputed amounts, is not sustainable.
The Court's order serves as a precedent for financial institutions and law enforcement agencies to exercise caution and limit their directives to what is strictly necessary under the law. It also sends a strong message about the accountability and responsiveness expected from investigating authorities.
Bottom Line:
Bank account freeze - Where police notice under Section 106 of Bharatiya Nagarik Suraksha Sanhita, 2023 directed lien marking of a specific disputed amount in respect of one transaction, freezing of entire bank account without justification is unsustainable - Court directed de-freezing of account while permitting lien to continue only to the extent of disputed amount.
Statutory provision(s):
Bharatiya Nagarik Suraksha Sanhita, 2023 Section 106
Sohel Molla v. State of West Bengal, (Calcutta) : Law Finder Doc Id # 2991157
