Bank Account Frozen by the Police or Cyber Cell: What the Law Says

Why accounts are frozen

When a victim of online fraud reports a transaction on the National Cyber Crime Reporting Portal or the 1930 helpline, the money is traced through the accounts it passed into, and banks are asked to mark a lien or debit freeze on those accounts. Many people affected this way are not the fraudsters: they received money in the ordinary course, as traders, freelancers or through peer-to-peer trades.

The legal basis

A freeze by the police is a seizure of property, governed by Section 106 BNSS (formerly Section 102 CrPC), which allows a police officer to seize property suspected to be stolen or found in circumstances that create suspicion of an offence. In Teesta Atul Setalvad v. State of Gujarat (2018), the Supreme Court recognised that a bank account may be frozen under this power. The officer must report the seizure to the jurisdictional Magistrate.

Limits courts have drawn

Several High Courts have held that a freeze should be proportionate, ordinarily limited to the amount allegedly linked to the offence rather than the whole account, and that an account should not stay frozen indefinitely without the seizure being reported to the Magistrate or without a live investigation. Practice differs between courts, and each case depends on its facts.

Getting the account released

• Ask the bank which police station or cyber cell requested the freeze, and for the complaint or case number
• Write to the investigating officer with documents showing the source of the credit
• Apply to the Magistrate for release of the seized amount or account under Section 503 BNSS (formerly Section 457 CrPC), or for directions on the seizure
• Where the freeze is unlawful or disproportionate, file a writ petition before the High Court; for accounts frozen by Bihar police, the Patna High Court

If you are the victim

If you have lost money to an online fraud, report it at once on 1930 or cybercrime.gov.in. Speed matters, because a freeze works best before the money is withdrawn. Keep transaction IDs, screenshots and bank messages.