MP HC Unfreezes Bank Account, Keeps ₹10,000 In Disputed Cyber-Fraud Transactions In FD Pending Magistrate’s Order

The petitioner filed a petition under Article 226 seeking directions to unfreeze his Axis Bank account.

Relying on *Malcolm Murayis & Ors. v. State Bank of India & Ors.* and *Archana v. State of Madhya Pradesh & Ors.*, he sought relief from the account freeze.

The Court recorded that the disputed amount comprised two entries totalling ₹10,000.

The judgment does not set out further details of the underlying complaint or the circumstances of the freeze.

Article 226 empowers the High Court to issue appropriate writs and directions.

In *Malcolm Murayis*, the Court directed that disputed funds be kept in fixed deposits, subject to orders of the competent Judicial Magistrate within three months, failing which the amount could be withdrawn by the account holder under intimation to the cybercrime agency.

The *Archana* decision set out the Ministry of Home Affairs’ SOP dated 10 April 2026 and guidelines requiring proportionate account restraints, preservation of only the suspected amount where sufficient, and timely action by banks and investigating agencies.

The Court held that these decisions applied *mutatis mutandis* to this case.

Applying *Malcolm Murayis* and *Archana*, the Court treated the ₹10,000 in disputed transactions as capable of being secured separately, without continuing the freeze on the petitioner’s entire account.

It directed that the disputed sum be placed in a fixed deposit, preserving it pending an order by the competent Judicial Magistrate within three months, while allowing the petitioner to operate the account.

The Court also left the Bank free to act in accordance with law and the SOP if it received a complaint concerning another transaction.

The disputed ₹10,000 must be kept in a fixed deposit and may be liquidated only upon 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 under intimation to the police agency.