Cybercrime-related account freezes must be limited to disputed sums, with remaining funds released.

The petitioner sought a writ directing State Bank of India to unfreeze his savings account and permit its normal operation.

He submitted that his case was covered by Malcolm Murayis & Ors. v. State Bank of India and Others, W.P. No. 1100 of 2024, decided on 26 April 2024.

The Court held that the earlier decision applied to the petitioner’s case mutatis mutandis.

1. Whether the petitioner’s account should be unfrozen, subject to safeguarding any amount identified by the investigating agency as disputed.

2. Whether the disputed amount, if any, should remain secured pending action by the competent Judicial Magistrate.

The Court applied the directions in Malcolm Murayis, under which an amount identified by cybercrime agencies as disputed is to be kept in fixed deposits and may be liquidated only after an order of the competent Judicial Magistrate.

The investigating agency is expected to proceed in accordance with the relevant provisions of the BNSS or other applicable law within three months; if it fails to do so, the amount may be released to the account holder under intimation to the agency.

Any undisputed balance is not required to remain frozen.

The earlier decision referred to Section 102 of the CrPC, but the present order framed the applicable requirement by reference to the BNSS or other law relied upon by the police.

Finding the petitioner’s case covered by Malcolm Murayis, the Court applied that precedent mutatis mutandis.

It balanced the need to preserve any amount claimed by the investigating agency against the petitioner’s request to operate the account: the disputed amount would remain protected in fixed deposits pending lawful action, while the rest of the funds would be released from the freeze.

Any amount claimed as disputed by the crime agencies is to be kept in fixed deposits and may be liquidated only after an order of the competent Judicial Magistrate.

The police agency is expected to proceed under the applicable law within three months; failing that, the amount may be withdrawn by the petitioner under intimation to the agency.

Any remaining amount in the account is to be defreezed.