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

Mr. Alok has found himself in a complex legal and financial predicament for over eighteen months. His bank account was abruptly frozen, and he has been unable to access his own funds. The root of the problem lies with his father, Mr. Ramesh, who fell victim to a sophisticated online investment scam.

Mr. Ramesh was drawn into a messaging app group that falsely claimed an association with reputable investment firms like “Zenith Investments” and “TradePro.” The group, consisting of several hundred members, created an illusion of legitimacy by offering supposed insider trading tips and even providing small initial returns to build confidence.

Initially, Mr. Ramesh invested modest sums. He even borrowed ₹3 lakhs from his son, Alok, which he promptly returned after receiving some of these early “profits.” Emboldened by this apparent success, he was lured into a larger, “exclusive” investment opportunity. Trusting the scammers, Mr. Ramesh invested his entire life savings, along with the same ₹3 lakhs he had once again borrowed from Alok.

Shortly after the large investment was made, the group administrators and the so-called successful investors vanished. When Mr. Ramesh tried to inquire about his investment, he was removed from the group. Realizing he had been cheated, he filed an FIR with the Cyber Crime Police in his city of Aadityapur.

A few weeks later, Alok received a notification from his bank that his account had been frozen. The reason cited was a suspicious transaction of ₹3 lakhs—the very money his father had returned to him. It turned out that another victim of the same scam, residing in the city of Navanagar, had filed a complaint. The Navanagar police, while tracing the money trail, identified Alok’s account as a recipient of the fraudulent funds, leading them to instruct the bank to freeze it.

For a year and a half, Alok has been diligently following up with the police in Navanagar. After persistent efforts, including meeting with the Superintendent of Police, he has finally been asked to submit a detailed affidavit and supporting documents to prove his non-involvement and clarify the source of the funds in his account.

Advice in such cases

• Immediately contact your bank to understand the reason for the account freeze. Obtain a written confirmation mentioning the authority that ordered the freeze (e.g., Cyber Crime Police, Navanagar).
• Gather all documents that prove the legitimacy of the transaction in question. This includes your bank statements, your father’s bank statements, and any communication that explains the transfer.
• File a formal representation with the concerned police station or cyber cell that initiated the freeze. Clearly explain your relationship with the sender of the money and the context of the transaction. Attach copies of all supporting documents.
• 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 the police are unresponsive, you can file an application before the concerned Magistrate’s court seeking directions to de-freeze the account.

Applicable Sections of Law

In cases like this, several provisions of Indian law come into play, especially under the new criminal laws:

• Section 104 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): This section grants police officers the power to seize any property, including funds in a bank account, that is suspected to be connected to the commission of an offense. The freeze is a measure to preserve evidence and prevent the dissipation of crime proceeds.
• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section defines the offense of cheating. The primary scam artists who duped Mr. Ramesh would be charged under this section.
• Section 319 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This deals with cheating and dishonestly inducing the delivery of property, which is directly applicable to the actions of the fraudsters.
• Information Technology Act, 2000: Sections such as 66C (Identity Theft) and 66D (Cheating by Personation using computer resources) are also invoked in cyber fraud investigations.

If you are the complainant

If you are the original complainant whose money was stolen (like the victim in Navanagar):

• Provide the police with every piece of evidence you have, including transaction details, screenshots of chats, and contact numbers of the scammers.
• Regularly follow up with the Investigating Officer (IO) to know the status of the investigation and the money trail.
• Cooperate fully with the police. Your information is crucial for them to track the entire chain of fraudulent transactions.
• 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 you are in Alok’s position, where your account is frozen because you are part of the money trail:

• Do not panic. The account freeze is a procedural step, and it does not automatically mean you are considered an accused.
• Prepare a detailed affidavit on stamp paper, duly notarized. This affidavit should clearly state the facts: who you are, your relationship with the person who transferred money to you, the reason for the transfer, and a declaration that you are not involved in any illegal activity.
• Attach proof of your identity (Aadhaar/PAN card), your bank statement showing the transaction, and the bank statement of the person who sent you the money (if possible) to establish the link.
• Submit this affidavit and the supporting documents to the Investigating Officer of the case. Keep a received copy for your records.
• 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

In large-scale cyber fraud cases, the police often cast a wide net. To secure the stolen funds, they trace the money trail and issue freeze orders for all accounts through which the money has passed. This is a standard operating procedure to prevent the criminals from withdrawing the funds. While this is necessary for the investigation, it unfortunately affects innocent individuals like Alok who are caught in the chain. The process of verifying each account holder’s legitimacy can be slow and bureaucratic, requiring persistent follow-up from the affected parties.

FAQs people normally have

What evidence is required?

• A detailed affidavit explaining your side of the story.
• Your KYC documents (Aadhaar Card, PAN Card).
• Your bank account statement highlighting the transaction in question.
• The bank statement of the person who sent you the money, showing the corresponding debit entry.
• Any communication (chats, emails) that provides context to the transaction.
• A copy of the FIR filed by your relative (if applicable, as in Alok’s case).

How long will the investigation take?

Cybercrime investigations, especially those involving multiple victims and jurisdictions, are inherently complex. Tracing digital money trails through various bank accounts and payment gateways takes a significant amount of time. There is no fixed timeline, and the process can unfortunately stretch from several months to even a few years, depending on the complexity of the case and the cooperation between different state police departments.

Advocate Sudhir Rao, Supreme Court of India