The Karnataka High Court has ruled that the police cannot direct a debit freeze of accounts of the sister concerns of a company under investigation. Justice Sachin Shankar Magadum thus directed the police and banks to defreeze the bank account of Mufin Green Finance Limited, a listed non-bank financial company (NBFC). “Impugned action of respondent No.1 (Police) is arbitrary, contrary to statutory mandate, and violative of settled legal principles. The petitioners, who are not even arrayed as accused, cannot be subjected to such coercive measures in the absence of any incriminating material and in the face of judicial orders already securing the alleged amounts,” his April 29 order read. Mufin Green Finance Limited and Mufin Technologies Private Limited had questioned the Hulimavu police’s notice issued to RBL and State Bank of India, directing a debit freeze of their accounts. Last year, the police investigated a case of alleged illegal online gaming and arrested certain people.…