MP HC Unfreezes Bank Account, Keeps Disputed ₹20,000 In FD Unless Police Obtain Magistrate’s Order Within 3 Months

The petitioner filed a writ petition under Article 226 seeking de-freezing of his bank account

He relied on *Malcolm Murayis v. State Bank of India* and the later decision in *Archana v. State of Madhya Pradesh*, concerning the treatment of bank-account freezes arising from cybercrime complaints and the applicable grievance-redressal procedure

The Court recorded that the disputed amount in the petitioner’s account was Rs. 20,000

The Court applied the principles in *Malcolm Murayis*, which provide for securing a disputed cybercrime-related amount in a fixed deposit, subject to orders of the competent Judicial Magistrate within the stipulated period.

It also applied *Archana*, which endorsed proportionate restrictions on bank accounts and the grievance-redressal process under the Ministry of Home Affairs’ Standard Operating Procedure dated 10 April 2026; under those guidelines, a freeze should ordinarily be limited to the suspected amount where that is sufficient, and the investigating agency should act in accordance with law and within the applicable timelines.

The Court referred to proceedings under the relevant provisions of the BNSS or other applicable law.

The Court considered the petitioner’s case covered by *Malcolm Murayis* and *Archana* and applied those decisions *mutatis mutandis*.

It directed that the identified disputed amount of Rs. 20,000 be kept in a fixed deposit, while the petitioner’s account was unfrozen and made available for operation. This preserved the disputed sum while avoiding continued restraint on the entire account; the police agency was expected to proceed under the applicable law within three months.

The Rs. 20,000 disputed amount must remain in a fixed deposit until orders are passed by the competent Judicial Magistrate within three months; if no such orders are passed within that period, the amount may also be withdrawn by the petitioner after intimating the police agency.