If you are stuck in such a situation, here is what to do.

Mr. Alok found himself in a distressing situation when his account with Pioneer National Bank was suddenly put on a debit freeze. The issue began when he received an unexpected credit of ₹1,00,000 from an unknown source. Shortly after, he was unable to make any withdrawals or transfers. Upon contacting the bank, he was informed that the freeze was initiated by the Cyber Crime police station based on a complaint regarding a fraudulent transaction.

Seeking a resolution, Mr. Alok visited the Cyber Crime police. To his shock, the officials allegedly told him that to get a No Objection Certificate (NOC) to unfreeze his account, he would have to pay them ₹2,50,000. This demand was not only more than double the amount he had received but was also clearly illegal. The situation was made worse by the fact that his Kisan Credit Card loan is linked to this account, with an installment payment due next month. He is now unable to access his own legitimate funds to pay the EMI, putting him at risk of default and damaging his credit history.

Advice in such cases

The situation Mr. Alok faces involves two separate issues: the frozen bank account and the illegal demand for money by police officials. The police have the authority to request a bank to freeze an account if it is suspected to contain proceeds of a crime. However, their role is to investigate the crime, not to act as recovery agents or extort money. The demand for a bribe is a serious criminal offense under the Prevention of Corruption Act. You should never pay a bribe, as it encourages corruption and offers no guarantee of a legal resolution.

Consult with Lawyer: The very basic and important step to start is talk to Cyber Crime Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000. He is helping you in this situation of come out. He is expert in the domain and can help you explain which documents to give to Police and which not. A Good lawyer can get your account unhold amount or bank account in 7-10 Days.

Applicable Sections of Law

Understanding the relevant laws is the first step toward finding a legal remedy.

• Section 109 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): This section grants police officers the power to seize any property that may be alleged or suspected to have been stolen, or which may be found under circumstances that create suspicion of the commission of any offense. A bank account is considered ‘property’ in this context, and this is the provision used to freeze it.
• Section 7 of the Prevention of Corruption Act, 1988: This section criminalizes a public servant taking any gratification other than legal remuneration in respect of an official act. The police demanding ₹2,50,000 is a clear violation of this act.
• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section pertains to cheating and would be applicable to the person who committed the original fraud that led to the money being transferred to Mr. Alok’s account.

If you are the complainant

If you are the person who has lost money to an online fraud, the correct procedure is as follows:

• Immediately call the National Cyber Crime helpline number 1930 or file a complaint on the official portal at www.cybercrime.gov.in.
• Provide all details of the fraudulent transaction, including transaction IDs, account numbers, and screenshots.
• The Cyber Crime police will trace the money trail and issue freeze orders to the banks where the money has been transferred.
• The objective of the legal process is to help you recover your lost funds, not to penalize innocent individuals whose accounts may have been used as “mule accounts” without their knowledge.

If you are the victim

If you are in Mr. Alok’s position, where your account is frozen and you are facing illegal demands:

• Consult with Lawyer: The very basic and important step to start is talk to Cyber Crime Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000. He is helping you in this situation of come out. He is expert in the domain and can help you explain which documents to give to Police and which not. A Good lawyer can get your account unhold amount or bank account in 7-10 Days.
• Do Not Pay the Bribe: Under no circumstances should you pay the money demanded by the police. It is an illegal act.
• File a Complaint Against the Police: Immediately file a written complaint detailing the illegal demand. This complaint should be addressed to a senior police officer (e.g., the Superintendent of Police or Commissioner of Police) and also to the state’s Anti-Corruption Bureau (ACB) or Vigilance Department.
• Approach the Court: You have the right to file an application before the jurisdictional Magistrate’s court seeking to de-freeze your account. In your application, you can state that you are willing to return the disputed amount (₹1,00,000) but need access to the rest of your legitimate funds for your livelihood and to meet obligations like your loan EMI.
• Address the Loan Issue: Inform your lending bank in writing about the account freeze. Provide them with a copy of the police complaint and your court application. Request an alternative method for paying your EMI or ask for a temporary deferment, explaining that the situation is beyond your control.

How the police behave in such cases

Ideally, the police should conduct a thorough and fair investigation. They are supposed to trace the complete money trail to find the actual perpetrator of the fraud. Often, accounts like Mr. Alok’s are merely intermediary or “mule” accounts used to launder money, and the account holder is unaware of the fraudulent source. A proper investigation involves recording statements, collecting evidence, and facilitating the return of the stolen amount to the original complainant. However, some corrupt officials exploit the situation by putting pressure on individuals whose accounts are frozen, using the freeze as leverage to extort money.

FAQs people normally have

What evidence is required?

To prove your case, you should gather all relevant documents. This includes your bank statements to show your regular transaction history, proof of your legitimate income (like salary slips or business records), and any communication with the bank. If you are filing a complaint against the police for demanding a bribe, a detailed written account of the incident (noting the date, time, and officer’s name) is crucial. Any potential witness or recording can serve as powerful evidence.

How long will the investigation take?

There is no fixed timeline for a police investigation into cybercrime, as it can be complex. However, you do not have to wait for the investigation to conclude. Filing an application in court to de-freeze the account is often the fastest way to get relief. The court can hear your plea and pass an order, often within a few weeks, directing the bank to unfreeze the account, sometimes after setting aside the disputed amount.

Advocate Sudhir Rao, Supreme Court of India