The Karnataka High Court has issued a crucial ruling limiting banks' power to freeze customer accounts on investigative agency directions. It mandates that banks can only restrict the specific amount mentioned in the order, not the entire account. This protects citizens' financial rights and clarifies the custodial role of banks during investigations.
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- ›Court & Judge: Karnataka High Court, Justice Suraj Govindaraj
- ›Date of Ruling: June 9, 2026
- ›Target this Data: Rs 25,000 (the specific amount in the case)
- ›Target this Nodal Body: Karnataka High Court (Justice Suraj Govindaraj)
- ›Target this Legal Point: Banks cannot act as 'adjudicatory authorities' and must confine actions to the 'scope of directions'
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