When a freely falling object comes downwards, its height above the ground decreases due to which its potential energy decreases progressively. Now, as the freely falling object comes down, its speed (or velocity) goes on increasing due to which its kinetic energy also goes on increasing. At any point of time during the free fall, the sum of potential energy and kinetic energy of the falling object remains the same (or conserved). So, there is no violation of the law of conservation of energy in this case.
