Introduction

In recent times, cyber crime complaints have increased drastically, and with them, so have instances of bank accounts being frozen by police on the basis of online FIRs or complaints. For ordinary citizens and small business owners, this can lead to serious inconvenience, financial loss, and even harassment—especially when they are not at fault or have unknowingly received money from a fraudulent transaction.

Why Are Bank Accounts Frozen?

When a cyber crime complaint is lodged—typically related to online fraud, UPI scams, or phishing—the investigating police often instruct banks to freeze accounts that have allegedly received or transferred fraudulent money. These instructions are sent via official letters or emails under Section 91 CrPC or under the general powers of investigation.

However, in many cases, innocent account holders who are not even aware of the crime become victims of this process.

Consequences of Freezing

• Inability to access your own funds.

• Business and daily activities come to a halt.

• Cheques and EMI payments bounce, causing legal issues.

• Banks offer little clarity without police direction.

• Public humiliation and undue pressure from police authorities.

Is This Legal?

While police do have the right to investigate cyber crimes, freezing bank accounts without following due process of law or without prior notice can violate Articles 14 and 21 of the Constitution, which guarantee the right to equality and life with dignity.

The Hon’ble High Courts in various states have observed that merely receiving money in an account is not enough to presume guilt or freeze accounts indefinitely.

Your Legal Remedies

If your bank account has been frozen unfairly, you can take the following steps:

1. Contact the Investigating Officer: Get clarity on the case and the reason your account was frozen.

2. File a Representation: Request the police to unfreeze your account with proper justification and documents.

3. Approach the Bank: File a formal complaint and get a copy of the freeze instruction.

4. File a Writ Petition in the High Court: Under Article 226, if your account remains frozen without FIR or without proper hearing, you can challenge it in court.

5. Seek Compensation: In certain cases, where harassment or loss has occurred due to illegal action, courts have awarded compensation to victims.

Preventive Tips

• Avoid accepting unknown or suspicious UPI/online transfers.

• Do not share your account details on unsecured platforms.

• Always report to the police if you suspect your account is being misused.

• Maintain records of all transactions for self-protection.

Conclusion

The misuse of cyber crime complaints to freeze innocent people's bank accounts is an emerging concern. While the intent is to curb fraud, the implementation often causes hardship to innocent citizens. It is important to know your rights, challenge unlawful actions, and seek legal recourse where needed.