New Delhi | The Supreme Court has agreed to consider an important petition seeking the formulation of a uniform Standard Operating Procedure (SOP) for freezing and de-freezing bank accounts during cybercrime investigations. The plea urges the Centre and the Reserve Bank of India (RBI) to lay down clear nationwide guidelines to curb alleged arbitrary actions by investigating agencies.
A Bench comprising Justice Pankaj Mithal and Justice S.V.N. Bhatti on Tuesday directed that notice be issued to the Union government within three days and listed the matter for hearing next week.
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Demand for written order and 24-hour intimation
The petition seeks directions to all investigating agencies, including cyber cells across the country, mandating that no bank account be frozen without a written, reasoned order. It further demands that account holders be informed within 24 hours of any such action.
According to the petitioner, the absence of a standardised procedure has resulted in inconsistent practices across States, leading to serious financial hardship for ordinary citizens whose accounts are frozen without prior notice.
Allegations of arbitrary action by Tamil Nadu Cyber Cell
The plea has been filed by Vivek Varshney, who has alleged that the Cyber Cell of the Tamil Nadu Police froze his bank account without issuing any prior notice, written communication or obtaining judicial approval. He contended that such action violates his fundamental rights under Article 19(1)(g) (right to practise any profession or carry on any trade) and Article 21 (right to life and personal liberty) of the Constitution.
Appearing for the petitioner, advocate Tushar Manohar Khairnar submitted that the freezing of the account had effectively brought the petitioner’s financial life to a standstill.
‘Life has come to a financial standstill’
The petition states that due to the freezing of his bank account, the petitioner has been unable to meet even basic professional and personal obligations, including payment of essential expenses, statutory dues, taxes and other liabilities.
“The freezing of the bank account has resulted in complete financial paralysis. The action has been taken without following any established legal procedure,” the plea said.
Violation of statutory provisions alleged
The petitioner has further pointed out that Section 106(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS) and Section 102(3) of the Code of Criminal Procedure (CrPC) mandate that any seizure or freezing of property must be promptly reported to the jurisdictional magistrate.
In the present case, the plea alleges, no such compliance was made. The action of the authorities is therefore described as without jurisdiction, arbitrary and unconstitutional.
Absence of a uniform national SOP
Highlighting a larger systemic issue, the petition notes that there is currently no uniform national SOP governing the freezing and unfreezing of bank accounts during cybercrime or financial investigations.
“As a result, citizens in different States are subjected to prolonged freezing of accounts, inconsistent procedures and deprivation of financial rights without due process,” the plea states.
The petitioner has sought two key reliefs from the apex court:
- Immediate de-freezing of his bank account
- Framing of uniform guidelines to ensure procedural safeguards, proportionality and accountability in future cases
- Entire account should not be frozen for a suspicious transaction
The plea further argues that unless an account holder is proven to be complicit in a crime, authorities should not freeze the entire bank account or amounts exceeding the alleged proceeds of crime, merely because a suspicious transaction has been traced to it.
In the petitioner’s case, the account was reportedly frozen following a transaction linked to the sale of jewellery. Despite this, the entire account was frozen, causing disproportionate hardship, the plea claims.
Call to protect citizens from unnecessary harassment
Referring to the increasing number of similar complaints across the country, the petitioner has urged the Supreme Court to step in to protect ordinary citizens from unnecessary harassment.
The plea also seeks directions to the Ministry of Home Affairs to formulate a uniform policy and SOP for cases where cyber cells issue notices freezing bank accounts.
The outcome of the next hearing is expected to determine whether the Supreme Court will lay down a comprehensive framework governing the freezing of bank accounts in cybercrime investigations — a move that could have wide-ranging implications for both law enforcement agencies and citizens nationwide.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
