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

Mr. Rohan Sharma, a young professional from Pune, recently found himself in a distressing situation. He discovered that several of his bank accounts with Apex Bank were frozen. He received no official notice and only learned about the freeze when he visited the bank to inquire about a failed transaction. The bank staff informed him that the action was taken based on a directive from the cyber crime division under Section 104 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.

This issue began after Rohan engaged in cryptocurrency trading on a platform called “DigitalCoin Exchange.” He suspects that one of his peer-to-peer (P2P) transactions may have been linked to illicit funds, triggering the police action. With no First Information Report (FIR) or official communication sent to him, Rohan is in the dark about whether he is an accused party or merely a person of interest in a larger investigation.

The timing could not be worse, as Rohan is in the process of applying for a Canadian student visa. While he has sufficient alternative funds to show for his visa application, he is deeply concerned about how this bank account freeze might impact the mandatory background checks conducted by the Canadian immigration authorities and whether it could be flagged as a criminal issue, leading to a visa rejection.

Advice in such cases 📝

Discovering that your bank account has been frozen by the police can be alarming. The first step is to remain calm and act methodically. Your goal is to understand the reason for the freeze and take legal steps to resolve it. Do not ignore the situation, as it can have long-term consequences, especially if you have plans for international travel or are applying for visas.

• Immediately contact your bank and request a written statement explaining the reason for the account freeze and the authority that issued the directive (e.g., which police station or cyber cell).
• Consult a lawyer who specializes in cybercrime and criminal law. They can help you navigate the legal process effectively.
• Attempt to contact the concerned police station or cyber crime unit to inquire about the case. Your lawyer can do this on your behalf.
• Gather all your financial records, especially those related to the transactions that you believe might have led to the freeze. This includes bank statements and crypto exchange transaction histories.

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 ⚖️

Under the new Indian criminal laws, the following sections are relevant in such cases:

• Section 104 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023: This section grants a police officer the power to seize any property which may be alleged or suspected to have been stolen, or which may be found under circumstances which create suspicion of the commission of any offence. A bank account is considered ‘property’ in this context, and the police can direct the bank to freeze it during an investigation.
• Section 172 of the BNSS, 2023: This section corresponds to the earlier Section 41A of the CrPC. If the police consider you a suspect, they are required to issue a notice of appearance, asking you to join the investigation. The absence of such a notice might indicate you are not the primary accused.
• Relevant Sections of the Bharatiya Nyaya Sanhita (BNS), 2023, and the Information Technology Act, 2000: Depending on the nature of the cybercrime, sections related to cheating (Section 316 BNS), identity theft, or other cyber frauds could be involved.

If you are the complainant 🙋‍♂️

If you were the one who reported a cybercrime (e.g., you were scammed and lost money), the police might freeze the accounts to which your money was transferred. In this scenario, you are the victim and a key witness. You should cooperate fully with the investigation and provide all necessary evidence to the police. The frozen funds in the scammer’s account may eventually be returned to you by court order after the legal process is complete.

If you are the victim 억

In a situation like Rohan’s, where your account is frozen because you unknowingly received funds from a tainted source (common in P2P crypto trading), you are technically a victim of circumstance. Your account becomes a link in the money trail. In this case, you must legally prove that your transactions were legitimate and that you had no knowledge of any underlying criminal activity. The primary course of action is to file an application before the jurisdictional Magistrate’s court, seeking the de-freezing of your account. This application must be accompanied by evidence of your legitimate financial activities.

How the police behave in such cases 👮‍♀️

In large-scale cybercrime investigations, police often adopt a “spray and freeze” approach. They identify a primary fraudulent transaction and then freeze all accounts connected to it, often going down several layers of transactions. This means many innocent individuals, like P2P traders, get caught in the net. The police may not be proactive in informing every single person whose account is frozen. Obtaining information from them can be challenging, and they may ask you to visit the police station, which could be in a different city or state. It is crucial to have legal representation to formally communicate with them and seek clarity on your status in the investigation.

FAQs people normally have 🤔

Does a frozen bank account mean I have a criminal case against me?
Not necessarily. An account freeze under Section 104 BNSS is an investigative tool. You may not be an accused. Your account could simply be part of the money trail the police are investigating. Until an FIR is filed naming you as an accused, you are not formally charged with a crime.

Will this affect my visa application and background checks?
This is a grey area. A bank account freeze itself is not a criminal conviction. However, if an FIR is filed against you, it could appear in police verification and background checks, potentially complicating your visa application. It is advisable to be transparent with immigration authorities if asked, and to have a lawyer’s letter explaining the situation and clarifying that you are cooperating with the investigation and are not convicted of any crime.

What evidence is required? 📂

To get your account de-frozen, you or your lawyer will need to present compelling evidence to the court, showing:

• Proof of identity and address (KYC documents).
• Complete bank statements showing the history of the account.
• Transaction records from the cryptocurrency exchange, proving the P2P trade.
• Any communication with the other party in the P2P transaction.
• Proof of your source of income to demonstrate that the funds in your account are legitimate.

How long will the investigation take? ⏳

Cybercrime investigations can be complex and time-consuming. The duration can range from a few months to over a year, depending on the number of people involved and the complexity of the money trail. However, you do not have to wait for the entire investigation to conclude. You can file an application for de-freezing your account before the court at any time after the freeze.

Advocate Sudhir Rao, Supreme Court of India