Citizens duped by cybercriminals can find their own bank accounts frozen with no end date. The Allahabad High Court has asked the Centre to find a way to end the Indefinite Freezing of such accounts, impleading the Ministry of Home Affairs in a builder’s plea whose business accounts remain frozen.
Lucknow: Hearing a builder’s petition, the Allahabad High Court has impleaded the Union of India through the Ministry of Home Affairs and asked the Central Government to come up with a solution for cases in which citizens fall prey to cybercriminals, their details are then used to commit further frauds, and their own bank accounts stay frozen indefinitely. The Court also directed the banks to contact the cyber cell and resolve the matter [Petitioner v. Union of India & Ors.].
A Division Bench of Justice Rajan Roy and Justice Subhash Vidyarthi observed that there has to be a mechanism to resolve such cases.
A solution sought from the Ministries
Counsel for two of the respondent banks told the Court that the bank had contacted the cyber cell and, having received no instructions, discontinued the freeze. The Bench then looked past the single account to the wider problem faced by victims whose identity is hijacked:
“…we would like the concerned Ministries/ Departments to come-up with a solution to such problems where gullible citizens are caught in a trap by the cyber criminals and their details are used by the latter for committing crimes and the accounts remain freezed indefinitely.”
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A builder whose accounts stayed frozen
The petitioner, a builder, said his son had mistakenly clicked on a link sent by a cybercriminal and shared his Aadhaar details and other information. According to the petitioner, the fraudster then misused those details to commit further cybercrimes and dupe other people through bank transactions. All of his accounts were frozen as a result, and he could not run his business. He had himself lodged an FIR in 2020.
Earlier, in proceedings for de-freezing one savings account, the High Court had allowed him to approach UIDAI for a new Aadhaar card and cancellation of the old one. Fresh biometrics were taken and his mobile number was changed, but his existing accounts stayed frozen.
Directions to the banks, the State and the Union
The two banks arrayed as opposite parties 2 and 3 were told to contact the relevant cyber cell personnel, ascertain the status of the pending criminal cases, act in accordance with law and “make all endeavour to resolve the matter”.
The petitioner has been asked to implead the State of Uttar Pradesh through the Additional Chief Secretary or Principal Secretary (Home), the Commissioner of Police, Lucknow, and the Station House Officer of Vibhuti Khand Police Station. Assistant Solicitor General SB Pandey accepted notice for the Union of India and was directed to seek instructions and file an affidavit. The matter will be listed after four weeks as a fresh matter.
Why the order matters
Freezes ordered during cybercrime investigations are meant to trace and hold proceeds of crime, yet they often trap people whose only fault is that their identity or details were misused. With no clear end point, a freeze can cut off a person’s livelihood for years, as the petitioner’s business shows. Courts have repeatedly said that freezing must be proportionate and linked to the alleged crime.
By bringing the Ministry of Home Affairs into the case and asking it for a solution, the Bench has moved beyond one petitioner’s relief to the need for a system-wide process, one that lets banks, cyber cells and victims resolve such freezes within a definite time.
Case Title: Petitioner v. Union of India & Ors.
Bench: Justice Rajan Roy and Justice Subhash Vidyarthi, Allahabad High Court (Lucknow Bench)
Next Listing: After four weeks, as a fresh matter
For the Union of India: SB Pandey, Assistant Solicitor General of India