Archive · 21 Nov 2025
Bombay HC: Probe Agencies Can't Freeze Accounts in Cyber Fraud Cases
The Bombay High Court said that police can't freeze entire bank accounts just because they're used in cyber fraud.
They can only stop the specific amount that's suspected of being fraudulent.
This means people can still use their accounts for other things.
The court also said that banks shouldn't freeze accounts on their own without a proper order from the police.
Bombay High Court ruled that probe agencies can't 'debit freeze' bank accounts involved in cyber fraud
Agencies can only put the disputed amount on lien, not freeze the entire account
The order was passed on petitions filed by individuals whose accounts were frozen under the Bharatiya Nagarik Suraksha Sanhita (BNSS)
The court quashed the orders issued by police to debit freeze the accounts of the petitioners
The court noted that banks should only put the disputed amount on lien, not freeze the account
- Who
- Bombay High Court, probe agencies, bank account holders
- What
- Ruled on the power of probe agencies to freeze bank accounts in cyber fraud cases
- When
- Thursday
- Where
- Bombay High Court, Nagpur
- Why
- To clarify the legal process for handling bank accounts suspected of involvement in cyber fraud
Probe Agencies' Stance
Bank Account Holders' Stance
Power to Freeze Accounts
Probe Agencies' Stance
Agencies believe they have the power to freeze entire accounts in cyber fraud cases
Bank Account Holders' Stance
Account holders argue that this causes loss and inconvenience
- BNSS Provision
- Section 106 gives power to seize property suspected of being stolen or linked to criminal activity
- Court's Ruling
- Agencies can only put the disputed amount on lien, not freeze the entire account
- Petitioners
- Seven individuals whose accounts were frozen
- Bank's Action
- Banks can put the disputed amount on lien, not debit freeze the account
- Compensation
- Petitioners can seek compensation if they wish