Now Reading: Allahabad HC bars blanket freezes in cybercrime cases
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Allahabad HC bars blanket freezes in cybercrime cases
The Lucknow bench of the Allahabad high court has ruled that investigating agencies cannot freeze an entire bank account when a cybercrime case concerns a specific sum. Banks must allow account holders…
The Story in Brief
The Lucknow bench of the Allahabad high court has ruled that investigating agencies cannot freeze an entire bank account when a cybercrime case concerns a specific sum. Banks must allow account holders to use funds beyond the disputed amount while retaining a lien over the money under investigation.
The order came in a petition by businessman Ritesh Yadav, whose accounts were frozen after Rs 36,000 was allegedly credited during a disputed transaction. The court directed banks to release the accounts beyond that amount and follow the Ministry of Home Affairs’ grievance procedure. Investigating officers must provide case details, the basis for restraint and the amount involved, while informing the jurisdictional magistrate.
The Indian Opinion
The lazy narrative that cybercrime requires banks to shut every account ignores the damage to legitimate businesses and families. The opposite claim, that every freeze is arbitrary, also overlooks the need to protect disputed funds during an investigation. The practical test is whether banks identify the precise amount, act quickly on complaints and restore access without weakening evidence collection. RBI circulation of the order should make compliance measurable, not merely advisory.
Source: rediff.com
This story was synthesised by AI from the source linked above.
