Cyber Crime Complaint Withdrawn? Lien Not Removed

One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

TL;DR: Withdrawing a cyber crime complaint on the portal does not, by itself, remove the lien that a bank has marked on an account. Only the bank, acting on the instructions of the investigating agency, can lift it. If you complained honestly and have now taken your refund, you are not obliged to run around for the other side's NOC, though you may be asked to record a short clarification statement.

A ₹10,000 refund landed back in Rohit Nair's account on 4 April 2025, and that should have been the end of it. It wasn't.

Three weeks earlier he had bought a device from a seller listed on a large online marketplace. It arrived damaged. The seller stopped replying to messages. So on 12 March 2025, Rohit filed a complaint on the National Cyber Crime Reporting Portal, attaching screenshots of the chats and the payment receipt. Within days, both his own account in Kochi and the seller's account carried a lien for ₹10,000. He had never asked for that. His account had very little in it anyway.

The seller's account, and apparently his employee's account too, got restricted. Then the calls started. Return the money, the seller said, and I'll take back the complaint. Rohit took the refund and marked the complaint as withdrawn on the portal. The status screen now reads withdrawal: Yes. The lien stayed exactly where it was.

The tone changed after that. The seller began threatening to file cases, claiming the complaint had cost him business. Rohit, who works a regular job, had never dealt with a police station. He tried the portal helpline on his own for a fortnight and got nowhere. He then approached the Chamber of Advocate Sudhir Rao. A written clarification went to the investigating officer, the refund trail was documented, and his actual obligations were spelled out in writing. Advocate Sudhir Rao's experience in cyber fraud procedure and lien mechanics is what got the matter closed on terms the client could live with.

Key Facts of the Case

• The client bought a product from a third-party seller on a large e-commerce marketplace; the product was defective and the seller stopped responding to refund requests.
• He filed a complaint on the National Cyber Crime Reporting Portal on 12 March 2025, with chat screenshots and payment proof attached.
• A lien of ₹10,000 was marked on both his account and the seller's account, though no FIR had been registered at that stage.
• The seller refunded the ₹10,000 and asked for the complaint to be withdrawn; the client marked it withdrawn on 4 April 2025.
• The portal status reflected the withdrawal, but the lien on the seller's account was not lifted automatically.
• The seller then threatened legal action against the client for the restriction on his account.

Does Withdrawing a Cyber Crime Complaint Remove the Lien on a Bank Account?

No. Withdrawal is something the complainant says. The lien is something the bank does on the instruction of the investigating agency. These are two separate acts recorded in two separate systems, and filing one does not undo the other.

That is the whole of the confusion in Rohit's case. He did what the seller asked. The portal accepted it. The hold on the accounts did not move.



What a "lien" on a bank account actually is

Bank branch staff use the word lien loosely. What shows on your statement is usually a debit freeze — either a hold on one specific amount or a hold on the entire operable balance. The money is still in your account. You just cannot touch it.

It is not a court attachment. It is not the bank accusing you of anything. It is the bank keeping the disputed sum parked so that if the money is later ordered to be returned to a victim, it is still sitting there to be returned.

There is one more feature people miss: the same transaction can be flagged on both ends. The complainant's own account may carry a shadow hold for the disputed amount while the beneficiary's account is frozen. In Rohit's case, his Kochi account carried a ₹10,000 hold too. It was not a large account, so the practical damage was small. Someone with their salary routed through that account would have felt it very differently.

Where the instruction to the bank comes from

When a financial cyber fraud complaint is filed on the National Cyber Crime Reporting Portal, it is routed through the Citizen Financial Cyber Fraud Reporting and Management System — the layer that connects the portal to banks and payment intermediaries. From there, the case reaches the police unit handling it. The investigating officer flags the beneficiary account and the amount. The bank then marks the hold.

The governing document for how banks are supposed to handle these flags and how they are to be released is the Standard Operating Procedure issued by the Ministry of Home Affairs in 2021 for handling financial cyber frauds. The short version of what it means for a customer:

• The bank acts on the instruction of the investigating agency. A branch official reading your withdrawal screenshot has no power to release the hold on his own.
• Release normally requires the same agency to send a written communication saying the amount is no longer required to be held.
• Where the matter has moved beyond the agency — an FIR, a charge-sheet, a trial — release may need a court order.

What "withdrawal: Yes" on the portal actually does

It records that the person who filed the grievance no longer wants to pursue it. It stops your own follow-up. It may cause the case to be closed at the portal level, or downgraded in the queue.

It does not send a release instruction to any bank. The portal front end and the bank's hold are not wired to each other in the way people assume. The officer handling the file has to separately communicate, and officers handle dozens of these files. If nobody follows up, nothing moves. That is what happened for the fortnight Rohit spent on the helpline.

Who can actually get the lien lifted

In order of speed and practicality:

• The investigating officer. A written request from the officer to the bank's nodal officer, confirming that the complainant has withdrawn, the refund has been received, and the hold is no longer required. This is the ordinary route and the one that most often works.
• A court. Where an FIR has been registered, restoration or release of the property may be sought under Section 106 of the BNSS. Where the bank and the police both sit on a cleared file and nothing happens, a writ petition under Article 226 of the Constitution before the High Court is an option, though it is a heavy instrument for a small sum.
• The RBI Ombudsman. If the police clearance is on record and the bank still does not act, a complaint under the Reserve Bank's Integrated Ombudsman Scheme is available. Banks respond to that channel because it is monitored.

Is the complainant obliged to give the seller an NOC?

No. There is no statute, rule or SOP that makes a complainant's No Objection Certificate a condition for lifting a freeze. Officers often ask for one because it gives them a clean piece of paper, and it is usually quicker to give a short factual statement than to argue the point. But a demand for an NOC is a request, not a legal obligation, and it is not something the seller can compel.

What the officer will realistically want is documentation, not a favour. Keep these ready:

• The original complaint acknowledgement and the NCRP acknowledgement number.
• Proof of the withdrawal on the portal, with the date.
• The bank statement showing the ₹10,000 credit from the seller.
• The seller's message trail — the refund, the demand to withdraw, and everything after.
• One short covering note, signed, saying the grievance is settled and no amount is outstanding.

If the Seller Is Threatening You After You Withdrew the Complaint

This is where people panic, and it is usually unnecessary panic. Once you have withdrawn a cyber crime complaint and taken your refund, you hold the evidence. The seller holds a frozen account and a grievance against the bank and the police, not against you.

What the seller can and cannot realistically do

Anyone can file a complaint. That is true, and it is the reason the threats feel frightening. What matters is what survives scrutiny.

• If the seller files a cheating complaint under Section 318 of the BNS, your defence is the paper trail: you paid, the product was defective, you complained in good faith, you withdrew on his request, you refunded nothing because nothing was owed. That record is hard to argue with.
• If the seller demands money or a favour under threat of criminal cases, that is a separate matter — criminal intimidation under Sections 351 and 352 of the BNS, and in some fact patterns extortion. Keep the messages. Do not delete anything.
• If the police do register a case against you, the remedies exist. Anticipatory bail under Section 482 of the BNSS, and quashing of proceedings under Section 528 of the BNSS, are the routes. They are not automatic, and they turn on the record.

One point that catches people out

Withdrawal at the portal and withdrawal of a case are not the same thing. Once an FIR is registered, the complainant cannot unilaterally walk away. Withdrawal from prosecution needs the court's consent under Section 321 of the BNSS. At the pre-FIR stage, which is where most portal complaints sit, the complainant has far more room. If your matter is still at the portal stage, say so in writing to the officer; it changes what can be done.

How Long Does It Take, and What Should You Do First

Realistic timelines run from a few weeks to a few months, and they vary by state and by how the local cyber cell is staffed. There is no fixed statutory clock on releasing a lien. What moves the file is a clear written communication to the right officer with the documents attached — not repeated helpline calls.

The order that works:

• Get the portal withdrawal confirmation in writing, with the date.
• Get the bank statement showing the refund credit.
• Send one written representation to the investigating officer handling the NCRP number, with everything attached, asking for release. Keep the acknowledgement.
• Send a copy to the bank's nodal officer for cyber fraud, quoting the NCRP number and the officer's communication.
• Follow up in writing, not on the phone, so there is a record of every step.

On these facts there was nothing for the client to defend, because there was no case against him in the first place. But that is a conclusion you reach after reading the papers, not before. If the complaint you filed was accurate, the freeze was a mechanical consequence and your position is strong. If it was not accurate, or if you inflated the loss or described a transaction that did not happen the way you wrote it, the analysis changes completely — and you should get advice before you put anything else in writing.

Frequently Asked Questions

Can the bank lift the lien if I show them the portal withdrawal screenshot?

Ordinarily no. The bank's hold is keyed to an instruction from the investigating agency. A screenshot of the portal status is not an instruction. The bank will usually ask for a written communication from the officer, and in some cases an FIR number or court order. Showing the screenshot helps your case for follow-up, but it is rarely enough on its own.

Will my own account be unfrozen at the same time as the seller's?

The two holds are usually released together, once the agency confirms the dispute is settled, but not always. If your hold persists after the other side is cleared, write to the bank quoting the officer's communication. That is normally enough. If it is not, the RBI Ombudsman route is available.

Do I have to sign an NOC or a settlement deed the seller sends me?

You are not obliged to. Sign nothing without reading it, and be careful with any document that admits liability or waives claims. A short, factual statement to the investigating officer is a different thing from a settlement deed drafted by the other side, and it is usually all that is required.

Can the police call me again after I have withdrawn the complaint?

Yes, for clarification. A withdrawal does not automatically close an investigation, and the officer may want a statement recorded. You are entitled to know in what capacity you are being called — as the complainant, or as a suspect. If it is the latter, speak to a lawyer before you go.

What if the seller actually files an FIR against me?

It happens, though it is uncommon where the refund is documented and the complaint was honest. In that situation, do not give any statement or appear before the police without advice, and get the record in order immediately — complaint, withdrawal, bank entries, and the full message trail with the seller.

Is there a time limit to withdraw a cyber crime complaint?

There is no statutory deadline for marking a complaint withdrawn on the portal. There is, however, no benefit in delay if you have already settled. The freeze sits on someone's account the entire time, and the longer it sits, the more likely the other side escalates.

Disclaimer: This article is general information about how cyber fraud complaints and bank liens work in India. It is not legal advice on your situation, and it is not a substitute for reading your own documents. Facts differ, and so do outcomes.

If you are in this position, send a short note to the chamber with the essentials: the NCRP acknowledgement number and its date, the portal withdrawal confirmation, the bank statement showing the refund, and two lines on what the other side is now demanding. That is enough for a first assessment — write to us here or book a consultation. If the record shows the complaint was honest and the refund is on paper, there may be very little for the other side to build on. If the record shows otherwise, you need to know that early rather than at the police station.

Advocate Sudhir Rao, Supreme Court of India