No blanket freeze of bank accounts in cybercrime probes: HC

The Lucknow bench of the Allahabad high court has ruled that investigating agencies cannot impose a blanket debit freeze on a person's bank account when the alleged cybercrime transaction involves a specific amount. A division bench of Justice Shekhar B Saraf and Justice Abdhesh Kumar Chaudhary said restraint must remain proportionate to the suspected proceeds of crime.

The court directed banks within its jurisdiction to follow a prescribed mechanism, including displaying grievance procedures at branches and on websites. It ordered the de-freezing of accounts of Lucknow businessman Ritesh Yadav beyond the disputed Rs 36,000, while retaining a lien on that amount.

The bench asserted that investigating officers must provide the bank with the FIR details and the specific amount for which the lien is sought, and also inform the jurisdictional Judicial Magistrate. The court said its directions ensure statutory powers are exercised transparently, proportionately, and in a legally compliant manner, and sent the order to the RBI for circulation to all banks.