The District Consumer Commission, Kaithal, held ICICI Bank guilty of deficiency in service for freezing a customer’s account without sufficient proof of fraud. The Commission found no valid legal basis for the lien and ordered relief in favour of the account holder.
In a significant consumer protection ruling, the District Consumer Disputes Redressal Commission, Kaithal, held ICICI Bank liable for deficiency in service after it placed a lien on a customer’s bank account without producing adequate evidence of fraud or any valid legal basis for freezing the account.
The order was passed on June 9, 2026, by a bench comprising President Neelam Kashyap and Members Harisha Mehta and Sunil Mohan Trikha.
The complaint was filed by Shaily Sikka, a resident of Kaithal, Haryana, who maintained a savings account with ICICI Bank. According to the complaint, she discovered that her account had been frozen when a transaction made for medical purposes failed on December 12, 2025. Upon approaching the bank, she was informed that a lien had been marked on her account.
The dispute arose after an amount of Rs. 34.90 lakh was transferred into her account through an NEFT transaction on November 23, 2025. The bank claimed that the remitter later disputed the transaction and, based on that complaint, a lien was imposed on the account.
Shaily Sikka argued that the bank had frozen her account without providing any proper notice or supporting documents. She contended that despite repeated requests, the bank failed to show any FIR, cybercrime complaint, investigation report, or legal order justifying the restriction on her account. She further stated that the action caused severe inconvenience and financial hardship.
ICICI Bank defended its action by submitting that the lien was imposed as a precautionary measure after the remitter raised a dispute regarding the transfer. The bank claimed that it acted in accordance with its internal procedures and banking guidelines.
However, after examining the material on record, the Consumer Commission found serious shortcomings in the bank’s defence.
The Commission observed that the bank could not produce any documentary evidence showing the existence of a valid fraud complaint, registration of a cybercrime case, an FIR, or any investigation by law enforcement authorities. The bank also failed to place on record any internal guideline that justified the continued freezing of the complainant’s account.
The Commission noted that the bank was unable to establish a lawful basis for restricting the operation of the account and held that the action amounted to deficiency in service.
Allowing the complaint, the Commission directed ICICI Bank to remove the wrongful lien and restore the banking facilities available to the complainant. The bank was further ordered to pay compensation and litigation expenses awarded by the Commission.
The Commission also made it clear that the bank must comply with the order within 45 days, failing which the awarded amount would carry 7% simple interest per annum from the date of the order until realization.
Warning the bank against non-compliance, the Commission observed that proceedings could be initiated under Section 72 of the Consumer Protection Act, 2019.
In its ruling, the Commission emphasized that the bank had failed to produce sufficient material to justify its action and found no legal basis for the continued freeze on the customer’s account.
Case Title: Shaily Sikka v. ICICI Bank & Anr.