A. Paranthaman vs The Commissioner of Police
- Court
- Madras High Court
WP Crl.(MD) No. 5805 of 2026
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
DATED: 05-11-2026
CORAM
THE HON'BLE MRS. JUSTICE K. GOVINDARAJAN THILAKAVADI
WP Crl.(MD) No. 5805 of 2026
CNR:{HCMD011529312026}
A. Paranthaman
..Petitioner
Vs
1. The Commissioner of Police,
Madurai City,
Madurai.
2. The Inspector of Police,
City Crime Branch,
Madurai
(Crime No.9 of 2026)
3. The Manager,
The Kumbakonam Benefit Fund Ltd.,
2-3, Karpaga Vinayagar Koil 2nd Street,
Near Bus stand, K.Pudur, Madurai-625005.
4. The Manager,
Annamalayar Finance,
No.78A, Singaravelar Street,
K.Pudur, Madurai-625007
5. The Manager,
The Tamilnadu Viswakarma Finance,
Paraspara Sagaya Nidhi Limited,
Athikulam, Madurai-625009.
6. V.G.Binu,
..Respondents
PRAYER: Writ Petition is filed under Article 226 of Constitution of
India, to issue a writ of mandamus directing Respondents 1 and 2 to
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withdraw the freeze instructions and direct Respondents 3 to 5 to DE-
FREEZE the pledge accounts operated by the petitioner and his wife,
P.Jothilakshmi for ‘Sri Amirtham Finance’ by considering his
representation dated 13.10.2026, and pass such further or other orders as
this Court may deem fit.
For Petitioner : M/s.S.Sheik Usman Ali
For Respondents : Mr.D.Rajaboopathy
Counsel for State of TN (Crl. Side)
for R1 and R2
Mr.Ramasamy for R6
ORDER
The present Writ Petition has been filed seeking a direction to the
respondents 1 and 2 to withdraw the instructions issued to respondents 3
to 5 and consequently direct respondents 3 to 5 to de-freeze the pledge
accounts operated by the petitioner and his wife in the name of ‘Sri
Amirtham Finance’, by considering the petitioner's representation dated
13.10.2026.
2. The case of the petitioner is that he has been carrying on pawn
broker business in the name and style of 'Sri Amirtham Finance' at
Thiruppalai, Madurai for the past ten years without any complaint and in
accordance with the rules and regulations governing the business. While
th
so, based on a complaint lodged by the 6 respondent alleging cheating in
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nd
respect of gold ornaments weighing approximately 3,590 grams, the 2
respondent registered a case in Crime No. 9 of 2026 on 29.01.2026, in
which one Praveen Kumar was arrayed as A1 and his wife Ramya as A2
and the petitioner as A3.
3. It is the further case of the petitioner that, during the course of
nd
investigation, the 2 respondent conducted a search at his business
premises and seized 1 ledger notebook, 35 bill books, 3 long-size
notebooks and 1 diary. Subsequently, instructions were issued to
respondents 3 to 5 to freeze the pledge accounts operated by the
petitioner and his wife Jothilakshmi. The petitioner would contend that,
out of the entire transactions, only approximately 37 grams of gold
ornaments pledged by accused Nos. 1 and 2 had been re-pledged with the
financial institutions concerned. However, the police have issued blanket
instructions freezing all the pledge accounts, including those relating to
gold ornaments belonging to innocent members of the public.
4. According to the petitioner, several customers have pledged their
personal jewellery with his establishment for meeting their medical,
educational and other family necessities. On account of the blanket
freezing instructions, such customers are unable to redeem their
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ornaments, and the petitioner is also unable to conduct his regular
business. He would further submit that the seizure of the entire business
records, coupled with the freezing of the pledge accounts, has virtually
paralysed his business activities and caused serious prejudice to innocent
third parties. Hence, he submitted a representation dated 13.10.2026
seeking withdrawal of the freezing instructions. Since no action was
taken, the petitioner has approached this Court.
nd
5. The 2 respondent, Inspector of Police, CCB, Madurai City has
filed a detailed counter affidavit opposing the Writ Petition. It is
submitted that Crime No. 9 of 2026 was registered on 29.01.2026 for the
offences under Sections 318(4), 336(2), 336(3) and 351(3) of the BNS,
th
2023, pursuant to the complaint lodged by the 6 respondent concerning
approximately 3,590 grams of gold ornaments and an alleged outstanding
amount of Rs.4,20,00,000/-. It is stated that, during the course of
investigation, it was revealed that the defacto complainant had been
carrying on gold transactions from the year 2023 onwards through one
Rajesh, who was known to him. Subsequently, accused A1 and A2
became acquainted with the defacto complainant, and the petitioner was
introduced to him through A1.
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6. The investigation allegedly disclosed that approximately 2,860
grams of gold ornaments entrusted by the defacto complainant were
received at the pawn establishment conducted by the petitioner and his
wife, either through Rajesh or through A1. It is further stated that the
pledge cards were issued in respect of approximately 1,400 grams of gold
ornaments, whereas particulars relating to the remaining ornaments were
not furnished or recovered for verification. It is further submitted that the
petitioner and his wife had re-pledged the ornaments with various
financial institutions. Hence, the Assistant Commissioner of Police, CCB
issued communications dated 06.02.2026 and 17.02.2026 invoking
Section 106 of the BNSS, 2023, directing the concerned financial
institutions not to permit redemption or release of the ornaments until
further orders.
7. It is further submitted that the investigation revealed certain
discrepancies in the pledge records maintained at the petitioner's
establishment. In particular, it is alleged that certain entries relating to
ornaments pledged in the name of A1 had been altered to indicate that the
ornaments had been redeemed, whereas only 38 ornaments were shown
as outstanding. It is also stated that the petitioner's wife, who was
examined pursuant to a notice under Section 35(3) of BNSS,
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acknowledged that approximately one and a half kilograms of gold
ornaments connected with the transactions remained to be accounted for
herself and the petitioner. It is further submitted that the exact quantity of
ornaments connected with the alleged offence can be ascertained only
after reconciling the original ledger, bill books, pledge particulars,
statement of witnesses and the information obtained from the financial
institutions.
nd
8. Therefore, the 2 respondent would contend that the blanket de-
freezing of the pledge accounts at this stage would seriously prejudice the
investigation and may result in the disposal or release of the material
objects connected with the alleged offence. Hence, prays for dismissal of
the Writ Petition.
9. Heard the learned counsel appearing for the petitioner and the
learned Government Advocate (Criminal) appearing for the respondents
and perused the records.
10. At the outset, it is to be observed that the power of the
investigating agency to seize property under Section 106 of BNSS cannot
be disputed. However, such seizure is subject to the statutory safeguards
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contemplated therein, including the requirement of reporting the seizure
forthwith to the jurisdictional Magistrate. The exercise of such statutory
power necessarily be reasonable, proportionate and confined to the
requirements of the investigation.
11. In the present case, the complaint relates to approximately
nd
3,590 grams of gold ornaments. The 2 respondent has stated that
approximately 2,860 grams of ornaments were received through the
petitioner's establishment and that the pledge records relating to
approximately 1,400 grams were available for verification. The
investigating agency has also brought to the notice of this Court certain
discrepancies in the pledge entry and alleged alterations in the records
st
relating to the 1 accused. Further, the statement attributed to the
petitioner's wife concerning approximately one and a half kilograms of
ornaments remaining unaccounted for is also a matter requiring
verification.
12. In the above circumstances, the investigation in the above case
must be permitted to proceed unhindered. However, the rights of innocent
third parties cannot be sacrificed merely because the ornaments have
passed through the establishment of a person who has been arrayed as an
accused. The investigating agency is therefore required to identify the
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particular ornaments suspected to be connected with the alleged offence
and distinguish them from other ornaments pledged by independent
customers. In this regard, the investigating officer must undertake a
transaction wise and customer wise reconciliation of the pledge records,
including the original ledger entries, bill books, pledge receipts,
redemption particulars and re-pledging records available with the
concerned financial institutions. The blanket freezing of all pledge
accounts, without identifying the particular ornaments or transactions
suspected to be connected with the crime, cannot be permitted to continue
indefinitely.
13. In the considered view of this Court, the interests of the
investigation and the rights of innocent customers can be protected by
directing the investigating agency to undertake an expeditious
verification and segregate the ornaments specifically connected with the
alleged offence.
14. Accordingly, this Writ Petition is disposed of with the
following directions:
nd
(i) The 2 respondent shall, within a period of four weeks from the
date of receipt of a copy of this order, undertake a detailed verification of
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the pledge accounts maintained by the petitioner and his wife with
respondents 3 to 5.
nd
(ii) The 2 respondent shall prepare a comprehensive statement
identifying:
(a) The ornaments allegedly received from the defacto
complainant, either directly or through A1 and A2 or Rajesh.
(b) The ornaments re-pledged with respondents 3 to 5 and
suspected to be connected with Crime No. 9 of 2026.
(c) The ornaments belonging to independent third party customers,
which are not connected with the alleged offence.
(d) The ornaments in respect of which the pledge and redemption
particulars are disputed or require further verification.
(iii) The investigating officer shall verify the original pledge
records, ledger entries, bill books, pledge receipts, redemption particulars
and the relevant records maintained by the financial institutions
concerned.
(iv) The ornaments which are specifically identified as having been
received from the defacto complainant or as been directly connected with
the alleged offence shall continue to remain under restraint, subject to the
procedure prescribed under law and the orders of the jurisdictional
Magistrate.
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(v) In respect of ornaments which, upon verification, are found to
belong to independent third party customers and have no connection with
nd
the alleged offence, the 2 respondent shall forthwith issue appropriate
instructions for lifting the restraint, subject to any lawful order of the
jurisdictional Magistrate.
(vi) If the investigating agency requires continued custody or
restraint over any particular ornaments, it shall place the relevant
materials before the jurisdictional Magistrate and obtain appropriate
orders in accordance with the applicable provisions of law.
(vii) The respondents 3 to 5 shall cooperate with the investigating
agency by furnishing the relevant pledge account particulars, transaction
statements and details of the ornaments held by them.
nd
(viii) The 2 respondent shall also furnish the petitioner with a
statement of the pledge transactions identified as connected with the
alleged offence, subject to permissible restrictions necessary for the
investigation.
(ix) The respondents shall ensure that the claims of genuine third
party customers seeking redemption of their ornaments are considered
expeditiously and that they are not unnecessarily subjected to hardship on
account of the blanket freezing instructions.
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15. It is made clear that the petitioner shall not be permitted to
redeem, transfer, withdraw or otherwise deal with any ornaments
specifically identified as connected with Crime No. 9 of 2026, except in
accordance with the orders of the competent Court.
16. With the above directions, the Writ Petition is disposed of.
Consequently, connected Miscellaneous Petitions, if any, are closed.
05-11-2026
Index: Yes/No
Speaking/Non-speaking order
Neutral Citation: Yes/No
mar/skn
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To
1. The Commissioner of Police,
Madurai City,
Madurai.
2. The Inspector of Police,
City Crime Branch,
Madurai
3. The Additional Public Prosecutor,
Madurai Bench of Madras High Court,
Madurai.
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K.GOVINDARAJAN THILAKAVADI, J.
mar/skn
WP Crl.(MD) No. 5805 of 2026
05-11-2026
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