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

Last year, Mr. Sharma received a message from his bank, Global National Bank, stating that a lien of Rs. 9,500 had been placed on his account. When he visited his home branch in Aravalli Nagar, he was informed that the action was taken based on instructions from their Charminar City branch, following a complaint from the Cyber Cell of Charminar City Police. Mr. Sharma requested a copy of the complaint or any related details like the complaint number and the specific disputed transaction. Despite his branch’s attempts, the Charminar City branch refused to share any information.

Mr. Sharma escalated the issue through the bank’s grievance redressal department, social media channels, and even filed a complaint with the Reserve Bank of India (RBI). However, the RBI closed his complaint, stating that since the hold was placed by law enforcement authorities, they could not intervene. Given the small amount and the significant expense of travelling from Aravalli Nagar to Charminar City, he initially decided not to pursue the matter further.

Recently, the situation worsened when he received another message from the bank: “A stop has been placed on your account for other reasons.” His entire account, containing approximately Rs. 45,000, was now frozen, all without any prior notice from the police or any judicial authority. Mr. Sharma recalls receiving a small payment of around Rs. 200 from an online job offer through a messaging app, which he suspects might be connected. He is now questioning the legality of the bank’s actions in withholding complaint details and is considering his legal options, including filing a writ petition to get clarity and access to his funds.

Advice in such cases

When a bank freezes your account on the direction of a law enforcement agency like the Cyber Cell, it can be a confusing and frustrating experience. The bank is often just a complying party and may not have all the details. The key is to deal with the concerned police station directly, but professional guidance is crucial.

• 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 resolve in 7-10 days.
• Your lawyer can draft and send a formal legal notice to the bank’s nodal officer and the concerned police station, demanding the details of the complaint or FIR under which the action was taken.
• You can file a Right to Information (RTI) application with the Cyber Police station that initiated the action to obtain a copy of the complaint or FIR. This is your right and a crucial step in understanding the allegations against you.

Applicable Sections of Law

The actions of the police and banks in such cases are governed by the new criminal laws of India. The primary statutes involved are:

• Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): This code outlines the procedure for criminal investigation and trial.
  • Section 107 BNSS: This section empowers a police officer 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 balance is considered ‘property’ under this provision, and the police can direct the bank to freeze it.
  • Section 91 BNSS: This section allows a court or a police officer in charge of an investigation to issue a summons or a written order to a person (including a bank) to produce any document or thing necessary for the purposes of any investigation. Police often use this section to issue notices to banks to freeze accounts and provide transaction details.
• Bharatiya Nyaya Sanhita, 2023 (BNS): This code defines the offences. The original complaint would likely be under one of the following sections related to fraud or cheating.
  • Section 318 BNS (Cheating): This section deals with fraudulently or dishonestly inducing a person to deliver any property.

If you are the complainant

If you are the person who has been cheated and have filed the complaint, the process generally involves:

• Filing a complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or at the local Cyber Crime police station.
• Providing all details of the fraudulent transaction, including bank statements and screenshots.
• The police will then trace the money trail. As they identify accounts where the money has been transferred, they will issue notices under Section 107 BNSS to the respective banks to freeze those accounts.
• As a complainant, you must actively follow up with the Investigating Officer to ensure the investigation progresses and the case moves towards resolution.

If you are the victim

If your account has been frozen, you are considered a victim of the process, even if you are an accused in the police complaint. Here’s what you should understand and do:

• Your account is likely frozen because it appeared in the money trail of a cybercrime investigation. Even if you are an innocent recipient, your account can be frozen.
• The bank is legally obligated to comply with the police order. Arguing with the bank manager will yield no results. Your issue is with the police agency that issued the order.
• You, through your lawyer, must immediately contact the concerned police station to understand the nature of the allegations.
• The most effective remedy is to file an application before the jurisdictional Magistrate’s court for de-freezing the account. Your lawyer can argue that the freeze is causing undue hardship and that you are willing to cooperate with the investigation.
• A writ petition before the High Court is a powerful remedy but is generally pursued when there is a gross procedural irregularity or when lower court remedies are ineffective. It can be filed to command the bank to provide details or to quash the freeze order itself if it is found to be illegal.

How the police behave in such cases

Understanding police behaviour is key to navigating this situation:

• Police often freeze the entire chain of accounts to prevent the dissipation of funds. They may not differentiate between the main accused and others who may have received money unknowingly.
• They may not send a formal notice to the account holder immediately, as their priority is securing the funds.
• Communication can be difficult, especially if the police station is in another state. They may be unresponsive to phone calls or emails.
• Often, the police will ask the account holder to visit their station for a statement or to “settle” the matter by returning the disputed amount to the original complainant.

FAQs people normally have

Here are answers to some common questions in this scenario:

• Can the bank freeze my entire account for a small disputed amount?
  

  Legally, the freeze should be limited to the amount mentioned in the police notice. Several High Courts have ruled that freezing an entire account for a small disputed sum is excessive and arbitrary. However, police often issue blanket freeze orders for the whole account to ensure the accused’s cooperation. This action can be challenged in court.

  
  
• Is the bank legally right in not providing me the complaint details?
  

  The bank is acting on a legal directive from the police. While they should provide you with the basic details of the authority that ordered the freeze (e.g., FIR number, police station name), they might refuse to share the full complaint, citing the confidentiality of an ongoing investigation. They are in a difficult position between their customer and law enforcement. The proper channel to get the details is through an RTI or a legal notice from your advocate.

  
  
• Can I file a writ petition without any details about the complaint?
  

  Yes. You can file a writ petition against the bank for its failure to provide the basis for freezing your account. The court can then direct the bank and the concerned police department to produce the relevant documents and justify their actions. The lack of information itself becomes a ground for the petition.

  
  

What evidence is required?

To challenge the account freeze, you or your lawyer will need to gather the following:

• All communication from the bank regarding the lien and the freeze.
• Your bank account statements.
• Copies of all correspondence with the bank’s grievance cells and the RBI.
• Your identity and address proof (KYC documents).
• Any evidence explaining the transactions in your account, especially any that you believe might be under scrutiny.

How long will the investigation take?

The timeline for a cybercrime investigation is unpredictable. It can range from a few months to several years, depending on factors like the complexity of the money trail, the number of accused involved, and the workload of the investigating agency. Waiting for the investigation to conclude is not a practical option. Seeking a judicial order to de-freeze the account is often a much faster way to regain access to your funds while the investigation continues in the background.

Advocate Sudhir Rao, Supreme Court of India