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

Mr. Rohan, a college student in the city of Prayagpur, was shocked to find his bank account with ‘Apex National Bank’ had been put on hold. Upon inquiring, the bank manager informed him that the account was frozen due to a cybercrime complaint filed in a distant city, Rajgarh. The complaint alleged a fraudulent transaction amounting to ₹7,250. Rohan was completely unaware of any such transaction and had received no communication from either the police or the complainant. The bank manager vaguely mentioned that the matter might proceed to court, and the Investigating Officer in Rajgarh required a formal complaint from Rohan’s local police station to move forward. This unexpected situation caused immense stress and confusion, as Rohan contemplated whether to abandon the account altogether to avoid the hassle.

Advice in such cases

Facing a frozen bank account due to a complaint from another state can be daunting. Here are the crucial steps to take:

• Do not ignore the situation. Abandoning the account is not a solution and can lead to more severe legal consequences, including a non-bailable warrant being issued against you.
• Obtain all information in writing from your bank. Ask for a copy of the notice they received from the police, which should include the complaint number (FIR/CSR), the name of the police station, and the investigating officer’s contact details.
• Contact the investigating officer at the concerned police station immediately. Politely explain your situation and state your willingness to cooperate with the investigation.
• Gather all your financial records, especially the bank statement for the period in question, to prove your innocence.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Applicable Sections of Law

Such cases typically involve provisions from various laws:

• Bharatiya Nyaya Sanhita (BNS): Depending on the nature of the complaint, sections related to cheating (Section 318), criminal misappropriation of property, or theft could be invoked.
• Information Technology Act, 2000: This is the primary legislation dealing with cybercrimes. Sections related to identity theft (Section 66C) and cheating by personation (Section 66D) are often applied.
• Bharatiya Nagarik Suraksha Sanhita (BNSS): This code outlines the procedure for police investigation, including their power to issue notices and freeze bank accounts suspected to be involved in the commission of a crime. The police are required to follow the due process laid out in the BNSS.

If you are the complainant

If you have been a victim of an online financial fraud, you should:

• Immediately report the incident on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or by calling the helpline number 1930.
• File a formal complaint at your nearest police station, providing them with all transaction details, screenshots, and any communication you had with the fraudster.
• Provide the police with a clear statement and all evidence to help them trace the fraudulent transaction and the recipient’s account.
• Regularly follow up with the investigating officer on the progress of your case.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

If you are the victim

If your account has been frozen based on someone else’s complaint, you are the accused in the police records. Here’s how to proceed:

• Do not panic. A frozen account does not mean you are guilty. It is a standard procedure to prevent the alleged illicit funds from being withdrawn.
• As mentioned, get all details from your bank. This is your right.
• Proactively cooperate with the police. You may need to travel to the city where the complaint was filed or engage a lawyer there to represent you.
• Prepare a detailed representation explaining your side of the story, supported by your bank statements and other evidence, and submit it to the investigating officer.
• If the police are unresponsive or demand undue favours, you have the right to approach the court (Magistrate or High Court) to seek directions for de-freezing your account.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

The police, upon receiving a cyber fraud complaint, act swiftly to freeze the bank account where the money was transferred. This is done to preserve the proceeds of the crime. The investigation can be slow, especially when the complainant and the accused are in different states. The investigating officer in the complainant’s city holds the primary authority. They will expect the account holder (the accused) to cooperate and provide evidence to clear their name. Once they are satisfied that you are not involved, they will issue a ‘No Objection Certificate’ (NOC) or a closure report, which can be submitted to the bank to unfreeze the account.

FAQs people normally have

Why was my account frozen without any prior notice?
Accounts are frozen without notice to prevent the accused from withdrawing the disputed funds. It is a preventive measure taken at the initial stage of an investigation.

Can I be dragged to court for such a small amount?
Yes. The amount of money involved does not determine whether a crime has been committed. The legal process is initiated based on the allegation of a criminal act, regardless of the monetary value.

What happens if I just leave the account and ignore the problem?
Ignoring the issue is the worst course of action. It can lead to the police filing a chargesheet against you in court, issuance of warrants, and potentially being declared a ‘proclaimed offender’. This will create a permanent criminal record and severely damage your financial credibility (CIBIL score).

How do I get the NOC to unfreeze my account?
You get the NOC from the police after you have cooperated with the investigation and they are satisfied of your non-involvement. You may need to provide a statement and evidence. A lawyer’s assistance can be crucial in this process.

What evidence is required?

To prove your innocence, you will typically need:

• Your complete bank account statement for the last 6-12 months.
• Your KYC documents submitted to the bank (Aadhaar, PAN card, etc.).
• A written statement explaining that you have no connection to the complainant or the alleged transaction.
• Any other proof that can establish your innocence or show that your account might have been misused by others without your knowledge.

How long will the investigation take?

There is no fixed timeline. The duration of the investigation can range from a few weeks to several months. It depends on various factors, including the workload of the police station, the complexity of the case, the cooperation of the parties involved, and the distance between the two jurisdictions. Engaging a lawyer can help expedite the process by ensuring regular and proper follow-up with the authorities.

Advocate Sudhir Rao, Supreme Court of India