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

Mr. Rohan Mehra, a marketing professional from the city of Jalandhar, recently faced a distressing situation. He discovered that a substantial amount in his savings account with Prime Digital Bank was put on hold. When he contacted the bank’s customer service, he was informed that a lien had been placed on his account due to a cybercrime complaint filed in Nagpur. The complaint alleged that a transaction credited to his account was connected to an online fraud. Mr. Mehra was left confused and worried, unsure if only the disputed amount was frozen or if his entire account, including his salary and future transactions, would also be blocked.

Advice in such cases

• Immediately contact your bank’s branch manager in person. Request a written copy of the notice or order based on which they have frozen your account. This document is crucial as it will contain details about the authority that issued the order (usually the police) and the case number.
• Do not engage in any further transactions with the party involved in the disputed transaction without legal advice.
• Gather all documents and evidence related to the transaction in question. This could include invoices, contracts, email or chat conversations, and previous transaction history with the party.
• 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

In such cases, law enforcement agencies typically invoke the following legal provisions:

• Section 104 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (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 is considered ‘property’ in this context, and the police can direct the bank to freeze it.
• Bharatiya Nyaya Sanhita, 2023 (BNS): The underlying complaint could be registered under various sections of the BNS, such as Section 318 for cheating or Section 319 for cheating with knowledge that wrongful loss may ensue to a person whose interest the offender is bound to protect.
• Information Technology Act, 2000: Sections related to computer-related offences, such as Section 66D (punishment for cheating by personation by using computer resource), may also be applied.

If you are the complainant

• If you are the person who has filed the complaint after being defrauded, you must diligently follow up with the police.
• Provide the Investigating Officer (IO) with all transaction details, bank statements, and communication records with the fraudster.
• Once the police freeze the account, you may need to pursue civil or criminal remedies for the recovery of your money.
• 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 (like Mr. Mehra’s), you are the accused or a person of interest in the investigation. Here are the steps you should take:

• Obtain the freezing order from the bank and identify the police station and the case number (FIR number).
• Contact the Investigating Officer (IO) at the concerned police station to understand the allegations against you.
• Prepare a representation explaining your side of the story with all the supporting evidence to prove the legitimacy of the funds.
• If the police are unresponsive or if you are innocent, you can file an application before the jurisdictional Magistrate’s court for de-freezing the account.
• 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 cyber fraud complaint, the police register an FIR and trace the money trail. When they identify an account where the funds have been transferred, they immediately send a notice under Section 104 of the BNSS to the bank to freeze the account to prevent the funds from being withdrawn. Often, the police action is swift in freezing but slow in the subsequent investigation. They may not proactively inform the account holder. The account holder usually has to approach them to get the matter resolved. The police might suggest settling the matter with the complainant or wait for a court order to de-freeze the account.

FAQs people normally have

• Is only the disputed amount frozen, or the entire account?
  

  Legally, the police should instruct the bank to freeze only the specific amount linked to the alleged crime. However, in practice, due to vague instructions from the police or the bank’s internal risk policies, the entire account is often frozen, blocking all debit transactions. You may still be able to receive credits, but you cannot withdraw any money.

  
  
• Can I open another bank account?
  

  Yes, you can open an account with another bank. The freezing order is specific to one account. However, if the matter escalates, it could create issues with your KYC (Know Your Customer) profile in the long run.

  
  
• How can I get my account de-frozen?
  

  The account can be de-frozen if the complainant withdraws the complaint, if the police file a closure report finding no fault of yours, or through an order from a competent court.

  
  

What evidence is required?

To prove your innocence and get the account de-frozen, you will need to provide strong evidence demonstrating the legitimacy of the transaction. This includes:

• Your complete bank account statement.
• Proof of business or service for which you received the payment (e.g., invoices, service agreements, bills).
• All communication records with the party who transferred the funds (emails, chats, call records).
• Your KYC documents.
• Any past transaction history with the same party, if available.

How long will the investigation take?

There is no fixed timeline for such investigations. It can vary from a few weeks to many months, or even years. The duration depends on several factors, including the complexity of the case, the workload of the police station, the cooperation between different state police forces (if involved), and how proactively you or your lawyer follow up on the matter. Filing a court application for de-freezing can often expedite the process as it puts the police under an obligation to justify their actions before the judge.

Advocate Sudhir Rao, Supreme Court of India