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

In May 2024, I discovered a lien of Rs. 15,000 on my bank account. This was related to a UPI transaction of Rs. 90,000 I had received from an acquaintance. The bank informed me that the amount was put on hold following a complaint registered with the Mumbai Cyber Crime Cell. After this initial issue, my account seemed to be operating normally, and I continued with my regular daily transactions.

On May 15th, I transferred Rs. 1,20,000 via UPI to my wife’s bank account. Subsequently, on August 15th, we received a notification that an amount of Rs. 11,000 was withheld from my wife’s account due to a complaint from the Kolkata Cyber Crime Cell. To our shock, her entire bank account, which held a balance of over Rs. 7 Lakhs, was completely frozen.

Our attempts to resolve the issue have been frustrating. The bank manager has been unresponsive to our calls and emails, merely directing us to deal with the Kolkata Cyber Crime Cell directly. Unfortunately, we have not received any response from the cyber cell despite numerous attempts to contact them.

Advice in such cases

When a bank account is frozen or a lien is placed due to a cyber crime complaint, it can be a distressing experience. The flow of money is part of a chain, and if any part of that chain is linked to a fraudulent transaction, the police can freeze accounts to prevent the dissipation of funds.

• Immediately gather all relevant documents, including bank statements, transaction IDs, and any communication from the bank or police.
• Draft a formal written communication to the bank’s branch manager and their nodal officer, demanding a written explanation and copies of the order based on which they have frozen the account.
• Simultaneously, try to establish contact with the concerned Cyber Crime police station that initiated the action.
• 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 in these situations. The actions taken by the police and banks are governed by specific laws:

• 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. Bank accounts are considered ‘property’ in this context, allowing the police to direct banks to freeze them during an investigation.
• Section 94 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): This allows a police officer to issue a written order to a person (including a bank) to produce any document or thing necessary for the investigation. This is often the instrument used to get information from the bank and instruct them to place a lien.
• Sections under the Bharatiya Nyaya Sanhita, 2023 (BNS): Depending on the nature of the complaint, offences like cheating (Section 318 BNS) or theft could be invoked.
• Information Technology Act, 2000: Sections like 66C (identity theft) and 66D (cheating by personation by using computer resource) are commonly used in cyber fraud cases.

If you are the complainant

If you were the one who filed the cyber crime complaint because you lost money:

• Follow up regularly with the investigating officer at the cyber cell where you filed the complaint (e.g., on the National Cyber Crime Reporting Portal or directly).
• Provide any additional information or evidence the police may require promptly.
• Understand that the process involves tracing the money trail, which can be complex and time-consuming.
• 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. Sharma and his wife’s, you are considered an accused or a suspect in the police investigation until proven otherwise. Your goal is to prove the legitimacy of your funds and get the account de-frozen.

• Formal Bank Communication: Send a legal notice to the bank asking for the details of the complaint (FIR number, police station) based on which they have frozen your account. They are obligated to provide this information.
• Contact the Cyber Cell: Once you have the details, contact the concerned Cyber Crime police station. Your lawyer can file a representation on your behalf, explaining the source of funds and providing evidence (bank statements, etc.) to show that you are not involved in any crime.
• Court Application: If the police are unresponsive or the matter is not resolved, the most effective remedy is to file an application before the jurisdictional Magistrate’s court for de-freezing the bank account. The court can direct the police to either complete their investigation within a timeframe or release 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

The police are often dealing with a high volume of cyber crime complaints. Their standard procedure is to act quickly to prevent the fraudulent money from being withdrawn. They identify the accounts through which the money has passed and issue notices to the respective banks to freeze them. While this is a necessary investigative step, it often leads to the freezing of accounts of innocent individuals who are merely links in a longer transaction chain. Communication from the police can be slow due to their heavy workload. They may not respond to emails or calls until they actively investigate your specific link in the chain.

FAQs people normally have

• Why was my entire account frozen for a small disputed amount?
  
  The police often order a freeze on the entire account, not just the disputed amount, to secure the case property and prevent any further movement of funds that might be connected to the crime. While this is a harsh measure, it is legally permitted under Section 104 of the BNSS. An application to the court can be made to release the undisputed amount.
• Can the bank freeze my account without a court order?
  
  Yes, the bank can and must freeze an account based on a written direction from a police officer during an investigation under the BNSS. They do not need a separate court order for this initial freeze.
• How can I speed up the process?
  
  The fastest way to resolve the issue is often through the courts. Filing an application for de-freezing compels the police to appear in court and justify their actions, often leading to a quicker resolution than waiting for the investigation to conclude on its own.

What evidence is required?

To prove your innocence and get the account de-frozen, you should compile the following:

• Complete bank statements of the frozen account to show the history of transactions.
• Proof of the source of funds in your account to establish their legitimacy.
• Details of the specific transaction(s) that are under scrutiny.
• Any communication you have had with the person from whom you received the money.
• Copies of all correspondence with the bank and the police.
• A copy of the legal notice sent to the bank and any reply received.

How long will the investigation take?

There is no fixed timeline. An investigation can take anywhere from a few weeks to many months, or even years, depending on the complexity of the case, the number of people involved, and the workload of the investigating agency. Waiting for the police to complete their investigation can be a very long process. Therefore, proactively approaching the court is often the most practical solution for getting access to your funds.

Advocate Sudhir Rao, Supreme Court of India