- 1 - HC-KAR NC: 2026:KHC:19237 WP No. 2062 of 2025 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 7TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO.2062 OF 2025 (GM-POLICE) BETWEEN: MR.AVINASH SHETTY S/O K.NARAYANA SHETY AGED ABOUT 31 YEARS R/AT NO.2-91, KOLLI HOUSE MITHABAGILU VILLAGE KILLUR POST BELTHANGADY SUB-DISTRICT DAKSHINA KANNADA - 574 214 …PETITIONER (BY SRI. DHANANJAY KUMAR, ADVOCATE) AND: 1. THE STATE OF KARNATAKA REPRESENTED BY ITS SECRETARY DEPARTMENT OF HOME AFFAIRS VIKASA SOUDHA DR.AMBEDKAR ROAD BENGALURU - 560 001 2. THE STATION HOUSE OFFICER CEN P.S. SOUTH EAST DIVISION BENGALURU - 560 001 3. THE BRANCH MANAGER HDFC BANK NO.119 ,1ST MAIN ROAD Digitally signed by NAGARAJA B M Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:19237 WP No. 2062 of 2025 DR. RAJKUMAR ROAD RAJAJINAGAR BENGALURU - 560 010 …RESPONDENTS (BY SRI.K.P.YOGANNA, AGA FOR R.1 AND R.2; SRI.FRANCIS XAIER, ADVOCATE FOR R.3) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO QUASHING THE NOTICE ISSUED BY THE R-2 POLICE DTD 4.12.2024 VIDE ANNX-A AND ETC. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The captioned writ petition is filed questioning the action of respondent No.3 - Bank in debit freezing the bank account of the petitioner bearing HDFC Bank Account No.50100686335656 as per Annexure-F. 2. Heard learned counsel appearing for the petitioner and learned AGA appearing for the respondent Nos.1 and 2. - 3 - HC-KAR NC: 2026:KHC:19237 WP No. 2062 of 2025 3. The petitioner asserts that he was induced to enroll as a member of an online business platform operating under the name “Recorded Picture Company (RPC)”, upon payment of a sum of ₹18,000/-. It is his specific case that, upon such enrollment, he actively engaged with the said platform for a period of approximately one year and, through such engagement, generated certain earnings reflected within the RPC application. The petitioner submits that the platform provided an option for withdrawal of accrued income. 4. It is further contended that, out of a total accrued amount of ₹7,63,792.17/-, the petitioner effected a withdrawal of ₹2,00,000/- on 13.11.2024, which amount came to be credited to his bank account maintained with respondent No.3 – Bank, namely HDFC Bank. However, to the petitioner’s shock and dismay, the said account was subsequently subjected to a debit freeze. Upon approaching respondent No.3 – Bank for clarification, the petitioner was informed that the debit freeze had been - 4 - HC-KAR NC: 2026:KHC:19237 WP No. 2062 of 2025 imposed pursuant to a communication issued by the Investigating Officer in connection with suspected fraudulent transactions. 5. On the previous date of hearing, this Court had directed the learned Additional Government Advocate to obtain necessary instructions from the Investigating Agency, i.e., respondent No.2. 6. Today, the learned Additional Government Advocate, upon instructions, has placed on record a memo along with a copy of the ‘C’ Report submitted by the Investigating Agency. The same is taken on record. 7. In light of the ‘C’ Report filed by the Investigating Agency, which evidently indicates closure of the investigation without establishing any prosecutable material against the petitioner, this Court is of the considered view that the very basis for issuance of the communication leading to lien marking and consequent debit freezing of the petitioner’s bank account no longer - 5 - HC-KAR NC: 2026:KHC:19237 WP No. 2062 of 2025 survives. At this juncture, the learned Additional Government Advocate, on instructions, fairly submits that respondent No.2 would take necessary steps to issue appropriate communication to respondent No.3 – Bank for defreezing the petitioner’s account. 8. Recording the said submission, this Court proceeds to pass the following: ORDER (i) The writ petition is hereby allowed. (ii) Respondent No.2 – Station House Officer is directed to forthwith issue necessary communication to respondent No.3 – Bank, calling upon the Bank to defreeze the petitioner’s account bearing No.50100686335656. (iii) The aforesaid exercise shall be completed by respondent No.2 within a period of two (2) weeks from the date of receipt of a certified copy of this order. - 6 - HC-KAR NC: 2026:KHC:19237 WP No. 2062 of 2025 (iv) Upon receipt of such communication from respondent No.2, respondent No.3 – Bank shall forthwith act upon the same and defreeze the petitioner’s account, and in any event, not later than two (2) weeks from the date of receipt of such communication. Sd/- (SACHIN SHANKAR MAGADUM) JUDGE NBM List No.: 1 Sl No.: 31