Entire bank account needn’t be frozen in cyber crime: High Court

Kolkata: The Calcutta High Court has stressed that freezing an entire bank account in cyber fraud cases may not always be necessary, observing that authorities should explore less intrusive steps such as preserving only the disputed sums.

Justice Tirthankar Ghosh made the observation while disposing of a petition filed by businessman Md. Akbar Ali Khan. Khan complained that four of his bank accounts—used for regular business transactions—had been frozen after requisitions were issued by the Cyber Crime Police Station at Rohini, Delhi.

A state report submitted to the court revealed that two of Khan’s accounts had been named in multiple complaints of online fraud, while the remaining two accounts were the subject of single complaints. Acting on these requisitions, banks stopped all transactions, effectively paralysing Khan’s financial operations. The bench recognised the need for police to safeguard possible proceeds of crime but cautioned that investigative powers must be exercised with proportionality.

“Freezing entire balances can cause serious disruption to livelihoods,” the court noted, particularly where the account holder is not directly involved in the

alleged offences. Disposing of the petition, the court directed the investigating officer to first ascertain whether Khan was complicit in the cases registered at Rohini. If such complicity is established, Khan may approach the jurisdictional court there for remedies. If not, the officer must withdraw the instructions preventing him from accessing his accounts.

The bench further instructed that the Registrar General communicate its order to the Rohini cyber cell. Police authorities were also told to inform the petitioner of the precise sums for which the freeze had been ordered, rather than blocking the entire balance.

A copy of the police report has been placed on record and supplied to Khan’s lawyer. Legal observers said the ruling could help shape uniform procedures in cyber fraud probes. By emphasising alternatives to blanket freezes, the High Court sought to balance two competing interests—protecting victims of fraud while ensuring innocent account holders are not forced into financial ruin.