Cyber-fraud account freezes must preserve only the disputed amount and release the remaining balance.

The petitioner filed a writ petition under Article 226 seeking removal of the hold/lien on his HDFC Bank account.

Relying on Malcolm Murayis & Ors. v. State Bank of India & Others and Archana v. State of Madhya Pradesh & Others, he sought de-freezing of the account.

The Court recorded that the disputed amount was Rs. 44,876.26.

Whether the petitioner’s bank account should be de-frozen while the disputed amount is separately secured.

Whether the disputed amount should remain secured pending action by the competent Judicial Magistrate under the applicable law.

Article 226 empowers the High Court to grant appropriate relief against an account freeze.

In Malcolm Murayis, the Court directed that the disputed amount be kept in a fixed deposit and permitted its withdrawal if the competent Judicial Magistrate did not pass an order within three months.

Archana held that account freezes in cybercrime cases should comply with the Ministry of Home Affairs’ Standard Operating Procedure dated 10.04.2026 and be proportionate, ordinarily securing only the suspected amount rather than restricting the entire account; it also set out grievance-redressal and review procedures.

These decisions were applied mutatis mutandis in the present case.

Applying Malcolm Murayis and Archana, the Court considered it appropriate to preserve the identified disputed sum of Rs. 44,876.26 without continuing the freeze on the petitioner’s entire account.

It directed that the disputed amount be placed in a fixed deposit, while the account itself be unfrozen.

The arrangement preserves the amount for investigation while allowing the petitioner to operate the account; the police agency was expected to proceed under the relevant provisions of the BNSS or other applicable law.

The disputed amount may be liquidated only pursuant to an order of the competent Judicial Magistrate within three months; if no such order is passed within that period, the petitioner may withdraw the amount after notifying the police agency.

The petition was disposed of accordingly.