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

Mr. Alok Verma, a resident of the city of Ratnagiri, found himself in a distressing situation. For several months, his bank account with Apex Commercial Bank has been under a debit freeze. Despite numerous attempts to communicate with the bank and the local Cyber Crime unit, he has received no clear reason or justification for this action. The prolonged freeze has severely hindered his ability to manage his daily expenses and has caused immense financial and mental stress, effectively crippling his financial independence. Mr. Verma believes this arbitrary action infringes upon his fundamental right to livelihood, which is protected under the Right to Life and Personal Liberty.

Advice in such cases

Facing a sudden bank account freeze can be a bewildering and frustrating experience. It is a measure often employed by law enforcement agencies during investigations, particularly in cases involving financial or cybercrimes. Here is some preliminary advice:

• Gather all relevant documents. This includes your bank statements, any communication you have had with the bank, and any notices or emails you may have received from the authorities regarding the matter.
• Do not panic. While the situation is serious, there are legal remedies available to address it. Maintain a calm and methodical approach.
• Send a formal legal notice through an advocate to the bank and the concerned law enforcement authority (e.g., the police station or cyber cell that ordered the freeze). The notice should demand the legal grounds for the freeze and request its immediate revocation.
• 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 crucial for challenging an account freeze:

• Article 21 of the Constitution of India: This article guarantees the Right to Life and Personal Liberty. The Supreme Court has interpreted this to include the right to livelihood. An arbitrary and indefinite freezing of a bank account, which prevents a person from accessing their funds for daily living, can be challenged as a violation of this fundamental right.
• Article 226 of the Constitution of India: This empowers the High Courts to issue writs (like Certiorari, Mandamus, etc.) to any person or authority, including the government, for the enforcement of fundamental rights or for any other purpose. A writ petition in the High Court is the most common and effective remedy to challenge an unlawful account freeze.
• Article 32 of the Constitution of India: This provides the right to move the Supreme Court directly for the enforcement of fundamental rights. While this is a powerful remedy, the Supreme Court generally encourages petitioners to first approach the relevant High Court under Article 226.
• Section 102 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): This provision 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. The term “property” is interpreted to include bank accounts. However, the police must follow due procedure, which includes informing the Magistrate forthwith of the seizure.

If you are the complainant

If you have filed a complaint (e.g., for online fraud) which has resulted in the freezing of someone else’s account, your role is primarily to assist the police.

• Cooperate fully with the Investigating Officer (IO) and provide all evidence you have to support your complaint.
• Keep regular follow-ups with the IO on the status of the investigation.
• Understand that the account freeze is a procedural part of the investigation to prevent the siphoning of disputed funds.
• 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, you are the one who needs to take proactive steps.

• First, obtain a written statement or email from your bank confirming that the account is frozen and specifying which authority ordered the freeze.
• File an application under the Right to Information (RTI) Act with the identified police authority to get a copy of the complaint or FIR based on which the action was taken.
• 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.
• Based on your lawyer’s advice, file a writ petition before the appropriate High Court under Article 226, seeking the de-freezing of your account. The petition would argue that the freeze is arbitrary, without due process, and violates your fundamental rights.

How the police behave in such cases

Typically, law enforcement agencies act swiftly on complaints of financial fraud. They often issue a notice under Section 102 of the BNSS to the bank to freeze the account in question to prevent the withdrawal of funds. The police may not immediately inform the account holder, citing the need to protect the investigation. They are procedurally required to report the seizure (freeze) to the jurisdictional Magistrate, a step that is crucial and can be verified by your lawyer. You may find that you need to be persistent in communicating with the Investigating Officer to get clear information.

FAQs people normally have

What evidence is required?

To challenge the freeze, you will need:

• A copy of the bank statement showing the debit freeze.
• Written communication from the bank confirming the freeze and the authority that ordered it.
• Copies of all communication sent to the bank and police.
• An affidavit detailing the facts of your case, the legitimate source of your funds, and the hardship you are facing.
• Any evidence you have to prove the legitimacy of the transactions in your account.

How long will the investigation take?

There is no fixed timeline for such investigations. It can vary from a few weeks to several months or longer, depending on the case’s complexity, the police’s workload, and inter-state coordination if required. However, an indefinite freeze without progress in the investigation is grounds for judicial intervention. Filing a writ petition often compels the police to provide a status report to the court, which can help expedite the resolution.

Advocate Sudhir Rao, Supreme Court of India