Cybercrime-linked accounts must be unfrozen, with disputed funds held in fixed deposits pending magistrate orders.

The petitioner sought relief under Article 226 of the Constitution, including removal of the hold or freeze on bank account No. 924010063316803

The Court recorded that the cybercrime agencies had identified disputed amounts of ₹6,000 and ₹5,736, totalling ₹11,736, and that the case was covered by Malcolm Murayis & Ors. v. State Bank of India & Others, W.P. No. 1100 of 2024, decided on 26 April 2024

Whether the disputed amount identified in connection with the cybercrime inquiry should remain frozen in the petitioner’s bank account or be secured separately pending action by the competent Judicial Magistrate

Whether the remainder of the petitioner’s account should be unfrozen

Article 226 empowers the High Court to issue appropriate writs, orders, or directions.

The Court applied Malcolm Murayis mutatis mutandis: the disputed amount is to be placed in fixed deposits and may be liquidated only after orders of the competent Judicial Magistrate; the police agency is expected to proceed under the relevant provisions of the Bharatiya Nagarik Suraksha Sanhita (BNSS) or other applicable law within three months, failing which the amount may be withdrawn by the petitioner after intimating the agency

The Court did not specify a particular BNSS provision

Having found the petitioner’s case covered by Malcolm Murayis, the Court applied that decision to balance preservation of the disputed funds against the petitioner’s access to the rest of the account.

It directed that ₹11,736 be secured in fixed deposits pending orders of the competent Judicial Magistrate, while requiring the police agency to proceed in accordance with law within three months; absent such orders, the petitioner may withdraw the deposited amount after giving notice to the agency

The respondents were directed to keep ₹11,736 in fixed deposits, subject to liquidation only upon orders of the competent Judicial Magistrate; if no such orders are passed within three months, the petitioner may withdraw the amount after intimating the police agency.

The bank account was to be unfrozen, and any remaining amount was not to remain frozen