According to Odaily, the Madras High Court in India has ruled that police cannot freeze entire bank accounts during fraud investigations, but only the amounts directly related to the fraudulent activity. This decision follows a case where accounts were frozen due to a cryptocurrency investigation. Judge G. Jayachandran emphasized that freezing entire accounts deprives individuals of their livelihood and financial stability. He noted that account holders are often unaware of the reasons behind the freezing of their accounts, leading to significant disruptions in their daily financial and business transactions by the time they discover the issue.Judge Jayachandran also highlighted that, although the law requires investigative agencies to notify account holders and the court when freezing accounts, this requirement is frequently overlooked. He referenced Section 102 of the Criminal Procedure Code, now replaced by Section 106 of the Bharatiya Nagarik Suraksha Sahita Act, which mandates timely reporting of such actions.
