MP HC Unfreezes Bank Account Frozen On Police Notice, Keeps Disputed ₹3,000 In Fixed Deposit Pending Magistrate’s Order

The petitioner’s bank account was frozen following a notice from Mandawar Police, Uttar Pradesh.

He sought restoration of access to the account while asking that the disputed amount of ₹3,000 be retained in a fixed deposit.

He relied on Malcolm Murayis & Ors. v. State Bank of India & Ors. and the later decision in Archana v. State of Madhya Pradesh & Ors.

The Court considered those authorities applicable to the case.

In Malcolm Murayis, the Court directed that disputed funds be kept in fixed deposits and made their liquidation conditional on orders of the competent Judicial Magistrate within three months; absent such orders, the petitioners could withdraw the amount after informing the cybercrime agencies.

In Archana, the Court recognized that account-freezing measures must be proportionate and directed that, where possible, restraint should be limited to the suspected amount; it also set out a grievance process under the Ministry of Home Affairs’ SOP dated 10 April 2026.

The present Court applied those decisions mutatis mutandis and directed the police to proceed under the relevant provisions of the BNSS or other applicable law.

The Court treated the petitioner’s case as covered by Malcolm Murayis and Archana.

It balanced the need to preserve the disputed ₹3,000 against the petitioner’s request to use the rest of his account, ordering the disputed sum to be secured in a fixed deposit rather than continuing the freeze on the entire account.

It also left the police free to take appropriate action if the bank received a complaint concerning another transaction, subject to the SOP and applicable law.

The amount may be liquidated only after 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 informing the police agency.