Request for Guidance Regarding Debit Freeze on Savings Account (Layer-

790 votes

layer to involvement imputes a primary environment in the matter and Delhi police is not completely wrong in freezing your entire bank account there are judgements of the honorable Delhi High Court which do say that the entire account was not be frozen and only a lean must be marked on the disputed amount but that is subject to reasonable restrictions being imposed according to the involvement of the individual in the crime

Advocate Kunal Seth LawRato

971 votes

Yes, there are judgments holding that in cyber fraud cases, the police cannot mechanically freeze an entire bank account merely because some disputed amount passed through it, especially where the account holder is only a “Layer-2” beneficiary and not the principal accused. A relevant judgment is Neelkanth Pharma Logistics Pvt. Ltd. v. Union of India & Anr., where the Court emphasised that powers under Section 102 CrPC must be exercised reasonably and proportionately. The Court recognised that freezing an entire account severely affects legitimate business operations and livelihood, particularly when only a specific amount is alleged to be linked with the offence. The emerging judicial view is that the investigating agency must establish a direct nexus between the alleged proceeds of crime and the amount lying in the account. Accordingly, in appropriate cases, Courts have directed that lien/freezing should be restricted only to the disputed amount instead of paralysing the whole account. However, the remedy and strategy depend upon the transaction trail, disputed amount, stage of investigation, and the exact communication issued by the bank/cyber cell. We regularly handle bank account freezing/de-freezing and cyber fraud litigation matters. For a proper assessment of your case and possible remedies, you may connect with me directly.

Advocate Shubham Sharma LawRato

740 votes

You should immediately: Obtain a copy of the freeze notice/order from the bank. Submit a written representation to the IO/SHO with supporting documents showing legitimate source of funds. Request release of the non-disputed amount for daily expenses. If no action is taken, file a petition before the concerned Magistrate or High Court seeking partial/full defreezing of the account.

Advocate Madhvi Chopra LawRato

559 votes

The Hon’ble High Court of Delhi has recently passed a judgment in the case titled Malabar Gold and Diamond Limited v Union of India vide judgment dated sixteenth January has held that that any blanket or disproportionate freezing of bank accounts, particularly where the account holder is neither an accused nor even a suspect in the offence under investigation, is manifestly arbitrary, and in the teeth of the fundamental rights under Article 19(1)(g) and 21 and of the Constitution of India, which encompass the right to livelihood and freedom to carry on trade and business. Such indiscriminate debit freezing, without any finding of complicity, has the inevitable effect of paralysing the day-to-day business operations of an otherwise innocent entity, resulting in loss of commercial goodwill and financial consequences, thereby subjecting a non-complicit account holder to punitive consequences. You may prefer a Writ Petition before the High Court and seek Redressal of issues or move an application before the jurisdictional magistrate.

Advocate Shah Rukh Ahmad LawRato

994 votes

Your entire account cannot be freeze by the police as this is illegal and unlawful without any order of the court. We can directly move to magistrate court for Defreeze the account and seek appropriate direction from the court. For further query feel free to connect. Thanks

Advocate Bhawana Pandey LawRato

809 votes

In this particular case a police complaint can be filed Further a criminal petition can be preferred as has been envisaged under the scope and ambit of Section 106 of The BNSS That ways you can get immediate and effective relief in a time bound manner

Advocate Shambhavi Sharma LawRato