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2026 DAILYLAW 3034 (KAR)

DHYANPEETA CHARITABLE TRUST v. STATE OF KARNATAKA

WP/6432/2026 · 2026-04-09

Sachin Shankar Magadum

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Judgment text

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- 1 - HC-KAR NC: 2026:KHC:19975 WP No. 6432 of 2026 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 9TH DAY OF APRIL, 2026 BEFORE THE HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM WRIT PETITION NO. 6432 OF 2026 (GM-RES) BETWEEN: 1. DHYANPEETA CHARITABLE TRUST NITHYANANDA DHYANAPEETAM KALLUGOPAHALLI OFF MYSURU ROAD BIDADI BENGALURU RURAL DISTRICT-562109 REP. BY ITS AUTHORIZED REPRESENTATIVE MS SUMAN KRISHNAN 2. NITHYANANDESHWAR DEVASTHANAM TRUST NITHYANANDA DHYANAPEETAM KALLUGOPAHALLI OFF MYSURU ROAD BIDADI BENGALURU RURAL DISTRICT -562109 REP BY ITS AUTHORIZED REPRESENTATIVE MS SUMAN KRISHNAN 3. NITHYANANDESHWAR DEVASTHANAM TRUST NITHYANANDA DHYANAPEETAM KALLUGOPAHALLI OFF MYSURU ROAD BIDADI BENGALURU RURAL DISTRICT -562109 REP. BY ITS AUTHORIZED REPRESENTATIVE MS SUMAN KRISHNA (REGISTERED UNDER THE TRUST ACT) …PETITIONERS (BY SRI. S.RAJASHEKAR.,ADVOCATE) AND: 1. STATE OF KARNATAKA DEPARTMENT OF HOME Digitally signed by CHAITHRA A Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:19975 WP No. 6432 of 2026 VIDHANA SOUDHA DR B R AMBEDKAR VEEDHI BENGALURU -560001 REP. BY IS PRINCIPAL SECRETARY 2. THE SUPERINTENDENT OF POLICE S E AND INVESTIGATING OFFICER C I D BENGALURU -560001 3. THE BRANCH MANAGER UNION BANK (CORPORATION BANK) FIRST FLOOR, BEHIND POLICE STATION BIDADI MAIN ROAD BIDADI -5620109 …RESPONDENTS (BY SMT. DIVYA PURANDAR, ADVOCATE FOR R3 SRI. ADITYA DIWAKAR, AGA FOR R1 & R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO DIRECTING THE RESPONDENT NO.3 TO CONSIDER THE REPRESENTATION/COMMUNICATION DATED 02.11.2025 AND THEREBY DEFREEZE THE BANK ACCOUNTS OF THE PETITIONERS AS MENTIONED IN THE SCHEDULE PURSUANT TO THE ORDERS DATED 18.06.2010 PASSED BY THIS HON'BLE COURT IN W.P.15873/2010 CONNECTED WITH W.P.NO.15900/2010 AND W.P.NO.15901/2010 W.P.NO.15899/2010. VIDE ANNEXURES-A AND B. THIS PETITION, COMING ON FOR PRELIMINARY HEARING, FRESH MATTERS LIST, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE SACHIN SHANKAR MAGADUM ORAL ORDER The captioned petition is filed seeking a direction against the respondent No.3/bank to defreeze the - 3 - HC-KAR NC: 2026:KHC:19975 WP No. 6432 of 2026 accounts of the petitioners pursuant to the orders dated 18.06.2010 passed by this Court in W.P.No.15873/2010 c/w W.P.Nos.15899, 15900 and 15901/2010. 2. The petitioners–Trust, represented by its Board of Trustees, is before this Court calling in question the action of the third respondent–Bank in subjecting the Trust’s account to a debit freeze. The genesis of the impugned action lies in the registration of criminal cases in Crime Nos.141 and 142/2010 by Bidadi Police for the offences punishable under Sections 295(2), 376, 377, 420, 506 and 120-B of the IPC, wherein certain allegations are levelled against a pontiff associated with the Trust. Acting upon a communication issued by the second respondent– Investigating Agency in the course of investigation, the third respondent–Bank has proceeded to freeze the account of the petitioner–Trust, thereby disabling its financial operations. - 4 - HC-KAR NC: 2026:KHC:19975 WP No. 6432 of 2026 3. On a careful perusal of the material placed on record, this Court finds that the issue is no longer res integra between the parties. It is borne out from the records that this Court, in the earlier round of litigation in W.P.No.15873/2010 connected with W.P.Nos.15899, 15900 and 15901/2010, had issued specific directions to the Investigating Agency to withdraw the communication addressed to the Bank, which had culminated in freezing of the Trust’s accounts. The said orders are placed on record as Annexures–“A” and “B”. This Court also takes judicial notice of the interim order granted in the present proceedings, wherein a categorical direction was issued restraining respondent Nos.2 and 3 from taking any coercive steps against the petitioners. 4. What further assumes significance is the statement made by the then learned Additional Advocate General before this Court on 02.04.2026, wherein it was unequivocally submitted, on instructions, that the Investigating Agency intended to withdraw the - 5 - HC-KAR NC: 2026:KHC:19975 WP No. 6432 of 2026 communication which had led to the freezing of the petitioner’s account. The said submission, having been recorded by this Court, binds the respondents and cannot be permitted to be diluted or disregarded at this stage. 5. In that view of the matter, this Court is of the considered opinion that the continuance of the debit freeze on the Trust’s account is wholly unjustified and arbitrary. Merely because allegations are levelled against an individual pontiff in connection with the criminal proceedings, the Trust, which is a distinct juristic entity, cannot be penalized by paralysing its financial transactions, particularly in the absence of any material demonstrating that the Trust’s funds are directly linked to the alleged criminal activity. The action of the respondents, therefore, is disproportionate and runs contrary to the earlier binding directions issued by this Court. - 6 - HC-KAR NC: 2026:KHC:19975 WP No. 6432 of 2026 6. In the aforesaid backdrop, this Court deems it appropriate to issue necessary directions to respondent Nos.2 and 3 to strictly adhere to the earlier orders passed by this Court and to take consequential steps to restore the operational status of the petitioner–Trust’s bank accounts. 7. Accordingly, this Court proceeds to pass the following: ORDER (i) The writ petition is allowed. (ii) The communication issued by the second respondent–Investigating Agency, which has resulted in freezing of the petitioner–Trust’s bank account, shall stand treated as withdrawn, in terms of the earlier directions issued by this Court in W.P.No.15873/2010 and connected matters, as well as in the light of the statement made by the learned Additional Advocate General recorded on 02.04.2026. (iii) The third respondent–Bank is directed to forthwith take steps to defreeze and restore full - 7 - HC-KAR NC: 2026:KHC:19975 WP No. 6432 of 2026 operational status of the petitioner–Trust’s bank accounts, subject to the petitioners complying with all usual banking formalities, if any. (iv) Respondent Nos.2 and 3 shall ensure compliance of this order in its letter and spirit, and complete the aforesaid exercise within a period of four weeks from the date of receipt of a certified copy of this order. (v) It is made clear that any continued inaction or deviation from the directions issued by this Court would be viewed seriously and may entail appropriate consequences in accordance with law. SD/- (SACHIN SHANKAR MAGADUM) JUDGE ALB List No.: 1 Sl No.: 68