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

A gentleman, Mr. Alok Kumar, found himself in a difficult situation. He received a payment from an online gaming portal called ‘MegaPlay Wins’ and subsequently transferred these funds to his other bank accounts to manage some personal financial obligations. To his shock, he discovered that three of his bank accounts had been frozen. Upon inquiring, with the help of a relative, he learned that a cybercrime complaint had been filed concerning the initial transaction he received. The complainant, Mr. Rohan Mehra, alleged he was a victim of fraud.

Mr. Kumar managed to get in touch with Mr. Mehra and, in a bid to resolve the matter quickly, refunded the entire disputed amount. Mr. Mehra then assured him that he had withdrawn the complaint filed at the Rampur Cyber Police Station. However, weeks passed, and Mr. Kumar’s accounts remained frozen. The banks informed him that they had not received a No Objection Certificate (NOC) or a de-freezing order from the concerned police station, leaving Mr. Kumar unable to access his own funds and facing significant hardship.

Advice in such cases

Being in such a position is stressful, but there is a clear legal procedure to follow to resolve it. Simply refunding the money and getting a verbal confirmation of complaint withdrawal is often not enough.

• Consult with Lawyer: The very basic and important step to start is to talk to a 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 resolve in 7-10 days.
• Formal Compromise Deed: Once you have settled the matter with the complainant, it is crucial to execute a formal “Compromise Deed” or “Settlement Agreement.” This document should be duly signed by both you and the complainant, and preferably notarized. It should clearly state that the dispute has been resolved, the amount has been refunded, and the complainant has no further claims and agrees to the withdrawal of the complaint and the de-freezing of the bank accounts.
• Approach the Investigating Officer (IO): With this Compromise Deed, you or your lawyer must approach the IO at the police station handling the case. Submit a formal application along with the deed, requesting the issuance of an NOC or a de-freezing order to the concerned banks.
• Follow Up Persistently: Police stations are often overburdened. It is important to follow up regularly and politely with the IO to ensure the paperwork moves forward.
• Escalate if Necessary: If the IO is unresponsive or causing undue delay, you can escalate the matter by writing to a senior police official, such as the Assistant Commissioner of Police (ACP) or Deputy Commissioner of Police (DCP) overseeing that jurisdiction.
• Legal Recourse: If the police still fail to act, your final option is to file an application before the jurisdictional Magistrate’s court, seeking a direction to the police and the bank to de-freeze your accounts. The Compromise Deed will be a key piece of evidence in your favour.

Applicable Sections of Law

In India, cybercrime cases and the freezing of accounts are governed by specific laws, primarily the new criminal codes and the Information Technology Act.

• Section 104 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): 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. Bank account balances are considered ‘property’ in this context, allowing the police to direct banks to freeze them during an investigation.
• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section deals with the offence of ‘Cheating’. Most online financial frauds are registered under this section. The complaint against Mr. Kumar would likely have been filed under this provision.
• Information Technology Act, 2000: Sections like 66C (identity theft) and 66D (cheating by personation by using computer resource) are also often invoked in cybercrime cases.

If you are the complainant

If you are the one who has been defrauded and have filed the complaint:

• Filing the Complaint: You can file a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) or at your nearest police station, specifically at the Cyber Cell, if available.
• Cooperation: Provide the police with all evidence, such as transaction details, screenshots of messages, and bank statements.
• Withdrawing the Complaint: If you reach a settlement with the accused, you cannot simply withdraw the complaint verbally. You must visit the police station and give a formal written statement to the Investigating Officer. It is advisable to sign a Compromise Deed, as mentioned earlier, to formalize the settlement and help the accused get their accounts de-frozen. This ensures the case is closed properly from your end as well.

If you are the victim

If your bank account has been frozen because you are implicated in a cybercrime complaint (even if you believe you are innocent or a mule account holder):

• Do Not Panic: Understand that this is a standard procedure the police follow to secure the disputed funds.
• Gather Information: Contact your bank to get the details of the authority that ordered the freeze (usually a specific police station and case number).
• Consult a Lawyer Immediately: This is a legal matter, and navigating it without expert legal advice is very difficult. A lawyer can represent you before the police and, if needed, the court.
• Cooperate with the Investigation: Be prepared to show your bank statements and explain the nature of the transaction to the police to prove your side of the story.
• Seek a Resolution: If you were unaware that the funds were from a fraudulent source, explain this to the police. If you have settled with the complainant, use the Compromise Deed as your primary tool to get the de-freezing order.

How the police behave in such cases

The police act based on the complaint they receive. When a financial cybercrime is reported, their first priority is to trace the money trail and prevent the funds from being withdrawn further. Therefore, they immediately issue notices under Section 104 of the BNSS to the banks where the money has been transferred, leading to the account freeze. This is a standard operating procedure. While they are meant to investigate impartially, delays are common due to high caseloads. They will not de-freeze an account without a solid reason, such as a formal settlement between the parties or a court order, as they need to officially close the inquiry on their records.

FAQs people normally have

What evidence is required?

For the person whose account is frozen, the most critical evidence is the Compromise Deed or Settlement Agreement signed with the complainant. Other helpful documents include bank statements showing the refund transaction, and any written communication (emails, messages) with the complainant confirming the settlement.

How long will the investigation take?

The duration varies significantly. If a settlement is reached and all paperwork is submitted correctly, the process of getting the NOC from the police and the subsequent unfreezing by the bank can take anywhere from a few weeks to a couple of months, depending on the efficiency and workload of the concerned police station. If the matter goes to court, it can take longer. A proactive approach with the help of a lawyer can significantly expedite the process.

Advocate Sudhir Rao, Supreme Court of India