Rajasthan High Court Order: Bank Accounts Will No Longer Be Frozen Entirely on Suspicion of Cybercrime; Police Arbitrariness Halted

Now, an entire bank account will not be frozen on suspicion of cybercrime. Know what a Money Trail is, how much money the police can stop, and the rights of account holders.

Rajasthan High Court Bank Freeze Order: Imagine waking up, sipping your morning tea, picking up your mobile, and discovering your bank account is blocked. You can neither withdraw nor deposit money. In a panic, you rush to the bank, only to find out it wasn't the bank, but the police who did it. The reason? An unknown ₹100 that appeared in your account from somewhere, which you might have been happy about.

Yes, for some time now, thousands of people across the country have been facing this problem. But now, the Rajasthan High Court has delivered a verdict that has provided significant relief to the common man and curbed police high-handedness.

Let's understand the entire issue in simple terms and why this court decision is important for you.

Why is an Account Frozen?

In the world of cyber fraud, there's a term called "Money Trail." When a hacker defrauds someone, the police follow the money. Hackers often try to evade the police by transferring the stolen money in small amounts to hundreds of accounts.

Suppose a small portion of the fraudulent money (like ₹100 or ₹500) finds its way into your account. The police suspect you are part of the fraud gang. Based solely on this suspicion, the police instruct the bank, and your entire account is frozen. In banking terms, this is called placing a lien. The result is that due to those ₹100, even the lakhs of rupees in your account get blocked.

What Did the Court Say?

This issue came to light during a petition in the Rajasthan High Court, where the petitioner's entire bank account was frozen based on just one suspicious transaction.

Hearing the case, the High Court severely reprimanded the police and banks. The court clearly stated that freezing a person's entire bank account based solely on suspicion and without due process is arbitrary and against the spirit of the law.

The Court's Decision is Crystal Clear

The entire account will not be blocked: The police have the right to place a lien only on the amount that is actually disputed.

The remaining money is yours: If the fraud involves ₹500, only ₹500 will be held. No one can stop you from using the rest of your hard-earned money in your account.

Arbitrariness will not be tolerated: The police cannot harass a citizen without a solid reason and due process.

What to Do If This Happens to You?

Instead of panicking, act wisely. If your account is ever frozen, shouting at the bank manager won't help, as they are merely following orders.

• First, ask the bank for the details of the cyber cell or police station that placed the freeze.
• The bank will provide you with an Acknowledgement Number.
• Email that cyber cell or visit them in person to provide evidence that you are innocent.
• If the police still do not cooperate, send a legal notice through your lawyer, citing this Rajasthan High Court order.

Nowadays, it's the era of UPI. If money accidentally comes into your PhonePe or Google Pay from an unknown number, and the sender says, "It came by mistake, please send it back," never send the money back yourself. Ask them to complain to the bank. Sending the money back yourself can implicate you in a money laundering suspicion.