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Police cannot freeze an entire bank account; only quantum of money involved in financial fraud can be frozen, rules Madras High Court

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Justice G. Jayachandran says account holders cannot be deprived of their right to livelihood by crippling their finances. The order was passed in a case where the petitioner’s bank account was frozen for over a year in a cryptocurrency case

While investigating financial fraud cases, the police cannot freeze an entire bank account since it would amount to depriving the account holder of his/her right to livelihood. The investigating agencies can only freeze the quantum of money involved in the alleged fraud, the Madras High Court has ruled.

Justice G. Jayachandran passed the orders while disposing of a petition filed by Mohammed Saifullah whose account with the HDFC Bank branch at Villivakkam in Tiruvallur district was frozen by the bank for over a year at the request of the Telangana State Cyber Security Bureau (TSCSB).


Though the petitioner had claimed that he was unaware of the reason for freezing his bank account, HDFC bank counsel Chevanan Mohan reported to the court that it was done at the request of TCSCB which was investigating a cryptocurrency case booked in May 2023.

“The issue which many citizens currently face is the freezing of their bank accounts on instructions from the local Police or from the National Cyber Crime Reporting Portal (NCCRP) which enables lodging of complaints related to all kinds of cyber crimes including financial frauds,” the judge said.

He went on to state that many a times, the account holders remain clueless about the reason for which their bank accounts had been frozen and by the time they could figure out, enough damage gets done by crippling their day-to-day financial activities and business transactions.

“No doubt, the statutes empower the investigation agencies to request the bank concerned to freeze the accounts pending investigation and intimate it forthwith to the jurisdictional courts, but whether the power is properly exercised or not is the moot question now looming large,” he added.

The judge pointed out that courts across the country had been time and again making it clear that the police could not freeze bank accounts perpetually without intimating the account holders of the reasons for having done so and also about the extent to which the accounts could be frozen.


“Even then, day in and day out, this court comes across petitions to defreeze bank accounts by highlighting the failure of the investigating agencies in not only communicating the reasons to the account holders but also not intimating the jurisdictional court about the freezing of the accounts,” the judge lamented.

He highlighted that Section 102 of the Code of Criminal Procedure (Cr.P.C.) which had been replaced with Section 106 of Bharatiya Nagarik Suraksha Sanhita (BNSS) with effect from July 1, 2024 mandates the police to report seizure of property to the jurisdictional judicial magistrate.

https://www.thehindu.com/news/national/tamil-na...

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Benevolent Benevolent
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good move. police usually take huge bribe to unfreeze such accounts. 

Pro Community Angel Pro Community Angel
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Police will always quote jurisdictional issues with high court judgements. Nothing happens 

Deal Subedar Deal Subedar
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i am no legal expert but this is what is mentioned in quora -

The decision of a High Court of any state would be followed by all lower courts in the country, provided that a contrary judgement has not been passed by the High Court of that particular state where the lower court exercises jurisdiction.

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Benevolent Benevolent
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good move. police usually take huge bribe to unfreeze such accounts. 

Deal Subedar Deal Subedar
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But my whole account frozen and lien marked for only 699 and when I reached why they Frozen my account i got to know that some fraud happened and that amount is credited but this 699 neither credited in my account nor any where of my accounts 

Whom should I reach for help to get it unfreezed??

Deal Lieutenant Deal Lieutenant
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Take the matter in sdo court or consumer forum with all court orders that tells police and bank can't freeze bank account. 


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Deal Captain Deal Captain
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This is a serious concern and still there is no proper resolution....

Digital India 

Post Emperor Post Emperor
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Country of scammers will use each and every Govt Scheme and Innovations to Scam people.

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Deal Subedar Deal Subedar
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I don't know instead of finding criminal this NCCP or I4C or local police punish innocent citizens Because they are not much efficient to find out how to solve the matter without harm


This issue can only be solved when some government officials or legislative personals account freeze by these illiterate peoples

Pro Community Angel Pro Community Angel
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Police will always quote jurisdictional issues with high court judgements. Nothing happens 

Deal Subedar Deal Subedar
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i am no legal expert but this is what is mentioned in quora -

The decision of a High Court of any state would be followed by all lower courts in the country, provided that a contrary judgement has not been passed by the High Court of that particular state where the lower court exercises jurisdiction.

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Generous Generous
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india is the best country , indians are best honest people and indian police is best honest police of the world .. pata nahi noble peace prize kub milega inhe

Deal Lieutenant Deal Lieutenant
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Finally some small relief of bank account freezing:) wow good news nice

VU+ for more to be aware of this latest news:)

Deal Cadet Deal Cadet
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Good news with a big caveat. The police and bank should be aware of the judgement and be willing to abide by it
Commentator Commentator
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Such judgements are practically useless.

Deal Cadet Deal Cadet
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digital india has jeopardised banking. series of bank accounts gets frozen if there is one culprit.

Deal Cadet Deal Cadet
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After now many days it will be unblocked?

At least they should do some investigation and if the account holder is not related to fraud then they should unblock the account.

One of my friends accounts is blocked and no time frame is given. They keep on saying that they already sent an email to cyber police and they need to unblock it

Benevolent Benevolent
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Yes. we need a new cyber crime org that is upto speed of today's world.
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