Steps To Take If Your Bank Account Is Frozen Due To A Cyber Complaint?
Police have the authority to freeze a bank account if there is reasonable suspicion linking it to cybercrime or fraudulent activities. Section 102 of the Criminal Procedure Code (CrPC) now replaced by Bharatiya Nagatrik Suraksha Sanhita (BNSS) Section 106 grants police officers the authority to seize property linked to criminal activities. This includes freezing bank accounts suspected of involvement in offenses such as cybercrime. Once a seizure is made, the police are required to promptly report it to a Magistrate. The legality of such actions depends on strict adherence to the prescribed procedures, making it essential for individuals to know their rights in such situations.
This process often involves placing a lien on the account, effectively blocking any transactions until the investigation is completed. The freeze typically applies to the entire account balance, not just a specific amount, especially if the account is suspected of being used for illegal activities.
If your bank account has been frozen following a cybercrime complaint, here are the steps you can take to resolve the issue:
- Contact Your Bank: Reach out to your bank to determine which police station issued the instructions to freeze your account. A copy of the notice ordering the account to be frozen will be received.
- Send a Formal Letter: Once you have the police station details, send a detailed letter, preferably through a professional. Include explanations of your actions, along with transaction proofs like bank statements or USDT records.
- Offer to Repay: If applicable, inform the police that you are willing to refund any amount received to the complainant.
- Request Complaint Withdrawal: If the complainant agrees to withdraw their complaint, the police may close the case and unfreeze your account.
- File a Writ petition: If the issue remains unresolved, you can knock the doors of the court to get the account unfrozen.
Can Police Freeze The Entire Bank Account Due To A Cyber Complaint?
In financial fraud investigations, police generally freeze the entire account. However, the Madras High Court in 2024 in a judgement has clarified that investigating agencies are permitted to freeze only the specific amount linked to the alleged fraud, ensuring that the account holder’s rights are protected.
In a recent case of Mohammed Saifullah vs. Reserve Bank of India and Ors the entire bank account was frozen without specifying the amount involved in a cybercrime investigation.
The case involving cryptocurrency transactions under investigation by the Cyber Crime Bureau of Cyberabad, Telangana, a petition was filed regarding the freezing of a bank account. The account holder’s bank had frozen the account following instructions from the National Cyber Crime Reporting Portal and the Cyberabad Cyber Crime Bureau, citing suspected involvement of ₹2,48,835 in the crime. However, the total balance in the account stood at ₹9,69,580.
Despite more than a year passing, neither the investigating agency nor the bank provided the petitioner with clear reasons for the freeze or a timeline for resolution. This prompted the petitioner to seek a mandamus from the court to release the funds and unfreeze the account.
Justice G. Jayachandran ruled that freezing an entire account under the guise of investigation without specifying the amount or duration is a violation of fundamental rights, including the right to livelihood and the freedom to trade and conduct business. The court directed the bank to unfreeze the account, retaining only a lien of ₹2,50,000. The petitioner was allowed to operate the account on the condition that a minimum balance of ₹2,50,000 is maintained.
What Is A Lien Amount In A Bank Account?
A lien amount refers to the portion of money in a bank account that is temporarily frozen or marked as security by the bank. This amount cannot be accessed or withdrawn by the account holder until the lien is lifted. Typically, banks impose liens due to outstanding debts, unpaid dues, or legal obligations.
Conclusion
Dealing with a frozen bank account due to a cybercrime investigation can be challenging, but knowing your rights and the legal processes can ease the resolution. By consulting a cybercrime lawyer, cooperating with authorities, and leveraging suitable legal provisions, you can protect your financial interests and livelihood. Stay informed to handle such situations effectively and ensure compliance with legal guidelines.
