High Court Quashes FIR and Orders Release of Seized Vehicle in Fraud Case Under Bharatiya Nyaya Sanhita, 2023. The Court Held That Seizure by Senior Motor Vehicle Inspector Was Illegal Due to Lack of Authority Under Sections 318(4) and 336(3) Read with 3(5) of BNS, and Directed Return of Lamborghini Car to Owner.

High Court: Karnataka High Court Bench: BENGALURU
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Case Note & Summary

The dispute involved a criminal petition filed by the petitioner, represented by its proprietor, challenging an FIR registered against it for offences under Sections 318(4) and 336(3) read with 3(5) of the Bharatiya Nyaya Sanhita (BNS), 2023, related to alleged fraud and forgery in the registration of a Lamborghini Huracan car. The petitioner had purchased the vehicle from Hoysala Automotive Private Limited on 01-09-2025, paying ₹3,00,68,729, including GST and road tax, and registered it with the Regional Transport Office, Indiranagar, Bangalore East, under registration number KA03NX0016. The vehicle, manufactured in 2021, had a history of temporary registration but was sold as new. On 07-02-2026, the Senior Motor Vehicle Inspector, respondent No.2, seized the vehicle without prior notice or investigation, towing it himself and handing it over to Yelahanka Police Station, leading to the registration of Crime No.117 of 2026. The petitioner filed an application under Sections 497 and 503 of the BNSS before the Magistrate for vehicle release, which was rejected on 18-02-2026 due to State objections. The core legal issues were whether the FIR should be quashed under Section 528 of the BNSS and whether the seizure by the Inspector was legal. The petitioner argued that the seizure was illegal and the allegations were baseless, while the State contended that fraud and forgery had caused loss to the exchequer. The Court analyzed the facts, noting that the Inspector's seizure lacked legal authority as no power under the BNS was cited, and the State failed to justify the action. The Court also observed that if fraud occurred in the RTO office, the officers should have been implicated, not just the petitioner. Reasoning that the seizure was unlawful and the FIR lacked merit, the Court quashed the FIR and directed the vehicle's release to the petitioner, with liberty to file a fresh application before the Magistrate under Sections 497 and 503 of the BNSS for expedited disposal. The decision emphasized procedural legality and protection of property rights against arbitrary state action.

Headnote

A) Criminal Procedure - Quashing of FIR - Section 528 BNSS, 2023 - The petitioner sought quashing of FIR No.117 of 2026 registered for offences under Sections 318(4) and 336(3) read with 3(5) of the BNS, alleging fraud and forgery in vehicle registration. The Court considered the facts including purchase and registration of a Lamborghini car, and illegal seizure by the Senior Motor Vehicle Inspector. Held that the FIR was quashed as the seizure was illegal and the allegations lacked merit, directing the vehicle's release to the petitioner (Paras 1-10).

B) Motor Vehicles Law - Seizure of Vehicle - Illegal Seizure by Inspector - Bharatiya Nyaya Sanhita, 2023, Sections 318(4), 336(3), 3(5) - The Senior Motor Vehicle Inspector seized the petitioner's vehicle without prior notice or investigation, towing it himself and placing it at police stations. The Court found this action illegal as the Inspector lacked explicit power to seize under the BNS, and the State failed to provide legal authority for such seizure. Held that the seizure was unlawful, and the vehicle must be released to the petitioner (Paras 3-9).

C) Criminal Procedure - Release of Vehicle - Sections 497 and 503 BNSS - The petitioner filed an application under Sections 497 and 503 of the BNSS before the Magistrate seeking release of the seized vehicle, which was rejected due to State objections. The Court directed the petitioner to file a fresh application before the Magistrate, who must dispose of it without delay in accordance with law, ensuring proper legal process for vehicle release (Paras 5, 10).

Issue of Consideration: Whether the FIR registered for offences under Sections 318(4) and 336(3) read with 3(5) of the BNS against the petitioner should be quashed and whether the seizure of the vehicle by the Senior Motor Vehicle Inspector was legal.

Final Decision

Court quashed FIR No.117 of 2026, held seizure illegal, directed vehicle release to petitioner, and allowed petitioner to file application under Sections 497 and 503 BNSS before Magistrate for expedited disposal

2026 LawText (KAR) (03) 39

Criminal Petition No.2309 of 2026

2026-03-25

M. Nagaprasanna J.

Sri Venkatesh S.Arbatti, Sri B.A.Belliappa, Sri B.N.Jagadeesha, Sri M.S.Bhagwath, Sri Satish K.

H1 Car Care represented by Prop. Sri J.Ramakrishnaiah

State of Karnataka, Mr. Ranjith N., Senior Motor Vehicle Inspector, Bangalore South, The Station House Officer Yelahanka PS

Nature of Litigation: Criminal petition seeking quashing of FIR and release of seized vehicle

Remedy Sought

Petitioner seeks quashing of FIR No.117 of 2026 and release of Lamborghini car seized by respondents

Filing Reason

Challenging illegal seizure and registration of crime for offences under BNS

Previous Decisions

Magistrate rejected petitioner's application under Sections 497 and 503 BNSS for vehicle release on 18-02-2026

Issues

Whether the FIR registered under Sections 318(4) and 336(3) read with 3(5) of BNS should be quashed Whether the seizure of the vehicle by the Senior Motor Vehicle Inspector was legal

Submissions/Arguments

Petitioner argued seizure was illegal and allegations baseless State contended fraud and forgery caused loss to exchequer and justified crime registration

Ratio Decidendi

Seizure of vehicle by Senior Motor Vehicle Inspector without legal authority under BNS is illegal; FIR lacking merit should be quashed to prevent abuse of process; proper procedure under BNSS must be followed for vehicle release.

Judgment Excerpts

The petitioner is before this Court calling in question a crime in Crime No.117 of 2026 registered for offences punishable under Sections 318(4) and 336(3) read with 3(5) of the BNS. The Senior Motor Vehicle Inspector, the complainant, after registration of the crime, in the absence of the petitioner or in the absence of any notice to the petitioner, enters the house, goes to the garage, tows the vehicle himself and takes it away. The said submission is sans countenance , albeit , for the present, unless the learned State Public Prosecutor would place on record the power to do so.

Procedural History

Petition filed under Section 528 BNSS on 24-02-2026, heard and reserved on 24-02-2026, pronounced on 25-03-2026; earlier application under Sections 497 and 503 BNSS rejected by Magistrate on 18-02-2026.

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