If you are stuck in such a situation, here is what to do.
Mr. Alok discovered that his savings account with Zenith Premier Bank was completely frozen. Upon contacting the bank, he was informed that the action was taken based on a notice from a cybercrime police unit in a different state. Frustrated, Mr. Alok took to a social media platform to voice his grievance, highlighting that various High Court judgments have clarified that only the disputed amount should be put on hold, not the entire account, which contains his hard-earned money needed for daily expenses.
Soon after his post, he received a call from the bank's social media response team. However, they offered no solution, stating it was a police matter and their hands were tied. They confirmed the freeze was initiated by the cyber cell, leaving Mr. Alok in a precarious situation, unable to access his funds and unsure of the legal recourse available to him.
Advice in such cases
If your bank account has been frozen due to a cybercrime complaint, it can be a distressing experience. Here are the immediate steps you should consider:
- Gather Information from the Bank: Formally contact your bank's branch manager or nodal officer. Request a written copy of the notice or order based on which they have frozen your account. This document will contain crucial details like the FIR number, the name of the police station, and the investigating officer's details.
- Identify the Source: Use the information from the bank to identify the exact police station and the investigating officer (IO) handling the case. This is the starting point for all your subsequent actions.
- File an Application for De-freezing: The most effective remedy is to approach the jurisdictional court where the FIR is registered. An application can be filed to de-freeze the account, especially by arguing that the freeze is causing undue hardship and is disproportionate.
- Complain to the Banking Ombudsman: If the bank has not followed proper procedure or is being uncooperative, you can file a complaint with the Reserve Bank of India's Banking Ombudsman.
- 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
The primary legal provision that empowers the police to freeze bank accounts in such cases is found in the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).
- Section 104 of the 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. The term 'property' is interpreted broadly by courts to include bank accounts. When police issue a notice under this section, the bank is legally obligated to comply and freeze the account.
- Judicial Precedents: While the police have the power to freeze accounts, various High Courts have held that this power should not be exercised arbitrarily. It has been repeatedly observed that freezing an entire account, far exceeding the disputed amount, is unreasonable and causes immense hardship. Courts often order the de-freezing of the account after securing the amount actually involved in the alleged crime.
If you are the complainant
If you are the person who has been defrauded and have filed the complaint, here is the typical process:
- File a Complaint: You must immediately file a complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or at your nearest police station. Provide all details of the fraudulent transaction.
- Provide Evidence: Submit all relevant evidence, such as transaction IDs, bank statements showing the debit, screenshots of messages or emails from the fraudster, and any other communication.
- Police Action: Based on your complaint, the police will register an FIR and issue a notice under Section 104 of the BNSS to the beneficiary bank (the bank where your money was transferred) to freeze the account of the accused.
- 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 the person whose account has been frozen (the accused), your primary goal is to prove your innocence and get the account de-frozen.
- Obtain FIR Details: Your first step is to get the FIR number and police station details from your bank. Without this, you cannot proceed.
- Contact the Investigating Officer (IO): Reach out to the IO handling the case. Be prepared to explain your side of the story. If the transaction was legitimate (e.g., you sold goods or provided a service), provide proof.
- Cooperate with the Investigation: Provide all documents the police ask for, such as your bank statements, KYC documents, and evidence related to the transaction in question.
- File for De-freezing in Court: Often, the police may not act swiftly to unfreeze your account even if you provide evidence. In such cases, the best course of action is to hire a lawyer and file an application before the concerned Magistrate or High Court.
- 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
Upon receiving a cybercrime complaint, the police's immediate priority is to prevent the siphoned-off funds from being withdrawn. Therefore, they promptly issue a notice to the bank to freeze the suspect's account. This is a standard operating procedure. The investigation follows later. Especially in inter-state cases, the police may be slow to investigate or respond to the accused person's requests. They are often dealing with a high volume of similar cases. This is why proactive legal intervention is often necessary to get your account functional again.
FAQs people normally have
Why was my entire account frozen and not just the disputed amount?
As a preliminary and precautionary measure, police often issue a blanket order to freeze the entire account to ensure the "case property" (the money) is secured. While this is common practice, its legality is questionable and can be challenged in court on grounds of proportionality and undue hardship.
Can the bank freeze my account without giving me prior notice?
Yes. The bank acts on the legal directive from a law enforcement agency like the police. They are legally bound to comply immediately and are not required to provide you with prior notification, as doing so could defeat the purpose of the freeze by allowing the funds to be moved.
I am innocent and this transaction was legitimate. How do I get my account back?
You need to either convince the investigating officer with evidence of your innocence, leading them to withdraw their notice, or you must obtain an order from a competent court directing the bank to de-freeze the account. The latter is often the more reliable and quicker route.
What evidence is required?
The evidence depends on whether you are the complainant or the accused.
- For the accused account holder: You need to provide bank statements, evidence proving the legitimacy of the transaction (e.g., an invoice for goods sold, a contract for services rendered, communication with the other party), and any other documents that establish you are not involved in a crime.
- For the complainant: You need to provide your bank statement showing the debit, the transaction reference number, screenshots of any fraudulent websites or messages, call recordings if any, and a detailed note explaining the sequence of events.
How long will the investigation take?
There is no fixed timeline. Cybercrime investigations, especially those involving multiple states, can be complex and time-consuming. It can take anywhere from a few months to over a year. However, the legal process to de-freeze the bank account can be initiated immediately and may yield results much faster than waiting for the entire investigation to conclude.
Advocate Sudhir Rao, Supreme Court of India
Facing a similar matter? Speak to a criminal lawyer in Delhi — Advocate Sudhir Rao appears in bail, trial and appellate matters before the Delhi District Courts, the Delhi High Court and the Supreme Court of India.