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The Allahabad High Court has asked the Centre to address the indefinite freezing of bank accounts belonging to cybercrime victims.
What Did the High Court Observe?
A Division Bench raised concerns over cases in which cybercrime victims have their bank accounts frozen for prolonged periods after fraudsters misuse their personal information.
Hearing a petition filed by a builder, the court impleaded the Union of India through the Ministry of Home Affairs and sought a mechanism to resolve such cases. The Bench observed that citizens deceived by cybercriminals should not face indefinite restrictions on their accounts because their identities were subsequently misused for fraudulent transactions.
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Why Were the Builder’s Accounts Frozen?
The petitioner told the court that his son had mistakenly clicked a link sent by a cybercriminal and shared Aadhaar details and other personal information. According to the petition, the fraudster subsequently used those details to commit further cybercrimes and deceive other people through banking transactions.
The builder claimed that all his bank accounts were frozen following the fraudulent activity, preventing him from operating his business. He had lodged an FIR in 2020. During earlier proceedings concerning one savings account, the court permitted him to approach UIDAI for a replacement Aadhaar card. Although fresh biometrics were recorded and his mobile number was changed, his existing accounts remained frozen.
What Directions Were Issued to Banks?
The court directed two respondent banks to contact the relevant cybercrime cell, determine the status of pending criminal cases and take lawful steps to resolve the account-freezing issue.
Counsel representing the banks informed the Bench that one bank had contacted the cybercrime cell and discontinued the freeze after receiving no further instructions. The court also directed the petitioner to implead the Uttar Pradesh government through its Home Department, the Lucknow Commissioner of Police and the Station House Officer of Vibhuti Khand Police Station.
What Happens Next in the Case?
Assistant Solicitor General S B Pandey accepted notice on behalf of the Union government. The court directed him to obtain instructions and file an affidavit addressing the issue. The matter will be listed again after four weeks as a fresh case.
The proceedings highlight the difficulties faced by individuals whose bank accounts remain restricted during cybercrime investigations despite claims that their identities were misused. Such restrictions can prevent account holders from accessing their funds and conducting routine financial activities.
By seeking the Centre’s response, the High Court has raised the broader question of how banks and investigating agencies should handle prolonged account freezes involving victims of identity misuse.
The court’s directions place emphasis on coordination between banks, cybercrime cells and government authorities to resolve such cases while allowing criminal investigations to proceed under the law.
