Many account holders find their savings or salary account frozen without notice because some amount linked to an online fraud passed through it, often several transactions removed from the actual fraudster.
The legal basis
The police may seize property suspected to be connected with an offence under Section 106 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (earlier Section 102 CrPC), and must report the seizure to the Magistrate. Attachment of proceeds of crime requires an order of the court under Section 107 BNSS. Banks act on requests received through the cyber portal or from the investigating officer.
Common problems
- the entire account is frozen when only a small disputed amount is involved;
- no seizure is reported to the Magistrate and the freeze continues for months;
- the account holder is not told which police station or complaint is involved.
High Courts have repeatedly held that freezing an entire account indefinitely, without following the procedure, is disproportionate, and have directed that only the disputed amount be kept on hold.
Remedies
- Ask the bank in writing for the details of the freeze: the police station, complaint number and amount.
- Write to the investigating officer with your explanation and documents showing the source of the money.
- Apply before the jurisdictional Magistrate for release of the account or the amount.
- Where the freeze is arbitrary or has continued without legal basis, file a writ petition before the High Court.
This article is general information on the law as it stood when written. It is not legal advice. Every service matter turns on its own service record, rules and orders, which should be examined before any step is taken.