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

Mr. Verma finds himself in a complicated and stressful predicament. His account with National Commercial Bank has been frozen without prior warning. The issue appears to stem from a transaction that occurred several months ago. His close friend, Mr. Sharma, was involved in online sports betting on an international platform named “GlobalBetz.” To withdraw a significant sum of his winnings, Mr. Sharma used Mr. Verma’s bank account details for the transfer.

While Mr. Verma was aware that his friend was transferring money into his account, he was not directly involved in the betting activities and was completely unaware of the severe legal consequences that could follow. Now, the bank has flagged and frozen his account due to this specific transaction, citing it as suspicious. To make matters worse, when Mr. Verma contacted GlobalBetz to get transaction details to prove the source, the company claimed it no longer had data for that period, leaving him with no documentary support from the platform.

This situation has left Mr. Verma extremely worried about the freeze on his account, which disrupts his financial stability, and the potential for serious legal action against him, possibly under laws related to illegal gambling or even money laundering.

Advice in such cases

Navigating such a situation requires a calm and methodical approach. Here are the initial steps you should consider:

• Gather All Documentation: Collect all relevant documents, including your bank statements, any communication you have had with your friend regarding the transaction (like messages or emails), and any correspondence with the bank or the online platform.
• Communicate Formally: Write to your bank to formally inquire about the reason for the account freeze. Ask them to provide the details of the authority or complaint based on which the action was taken. This is often a notice from a Cyber Crime unit or another law enforcement agency.
• Create a Timeline: Prepare a detailed chronological account of the events. Note down when the transaction happened, when you spoke to your friend about it, and when you discovered your account was frozen. A clear timeline is crucial for explaining your case to authorities and your lawyer.
• 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

Understanding the legal framework is essential. Several laws can come into play in such cases:

• Public Gambling Act, 1867 & State Laws: Online betting and gambling fall into a legal grey area in India, but are largely considered illegal under this central act and various state-specific gambling laws. Facilitating such activities, even by allowing your bank account to be used, can attract legal penalties.
• Prevention of Money Laundering Act, 2002 (PMLA): Since betting is an illegal activity, the money generated from it is considered “proceeds of crime.” If funds from such activities are transferred through your account, it can be investigated as a case of money laundering under the PMLA, which is a very serious offence.
• Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): The entire police investigation and court procedure will be governed by the BNSS. This includes the police’s power to issue notices for you to appear for questioning and the procedures for freezing accounts and collecting evidence.
• Information Technology Act, 2000: This act may also be invoked, as the transaction involves an online platform and electronic transfer of funds.

If you are the complainant

If your account was used without your explicit and informed consent for such an illegal transaction, you are a victim. In this scenario, you should act as the complainant to protect yourself.

• File a Police Complaint: Immediately file a complaint with the local police or the Cyber Crime cell, stating that your account was used by another person for illicit transactions without your full knowledge of the source of funds.
• Inform the Bank: Submit a copy of the police complaint to your bank. This officially documents your stand that you are a victim in this situation.
• 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

In a situation like Mr. Verma’s, where he consented to the transfer but was unaware of the illegal source, he is a victim of circumstance. The legal strategy is to prove a lack of criminal intent.

• Cooperate with Authorities: It is crucial to cooperate fully with the investigating agency. Hiding facts or providing misleading information can worsen your situation.
• Get an Affidavit from Your Friend: Your friend who conducted the transaction must provide a sworn affidavit. This legal document should clearly state that the money was his, it came from his betting activities, and he used your account for the withdrawal. The affidavit should also clarify that you had no involvement in the betting itself.
• File a Representation: Your lawyer can help you draft a detailed representation to be submitted to the investigating officer, explaining your side of the story with all supporting evidence, including your friend’s affidavit.
• 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 or Cyber Crime cell will likely follow a standard procedure:

• Issue a Notice: They will issue a formal notice under the provisions of the BNSS, summoning you to join the investigation and provide a statement.
• Initial Suspicion: Initially, the police will treat the account holder as a suspect, as the illicit funds were found in their account. The burden of proof will be on you to demonstrate your non-involvement.
• Evidence Collection: They will collect evidence from the bank, trace the money trail, and question all parties involved, including your friend.
• Account Freeze Duration: The account will remain frozen for the duration of the investigation or until the police provide a No Objection Certificate (NOC) to the bank, or a court orders it to be de-frozen.

FAQs people normally have

What evidence is required?

To build a strong case and prove your innocence, you will need:

• An affidavit from your friend taking full responsibility for the transaction.
• Your bank statements to show your regular transaction history and prove that this particular transaction was an anomaly.
• Any digital communication (chats, emails) with your friend that proves you were merely helping him receive money and were not part of the betting.
• Proof of your own legitimate income to establish that you had no need to engage in such activities.

How long will the investigation take?

Unfortunately, these investigations are not swift. The duration can vary greatly depending on the complexity of the case, the amount of money involved, and the workload of the investigating agency. It can take anywhere from a few months to over a year to get a resolution. Patience and persistent follow-up through your lawyer are key.

Advocate Sudhir Rao, Supreme Court of India