Freeze of account by cyber cell

When a bank account is frozen by a Cyber Cell, it usually occurs under Section 102 of the Criminal Procedure Code (CrPC) or Section 106 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), which allows police to seize property suspected to be linked to a crime.

​If the account holder is an innocent party (often called a "victim of a layering process" where disputed funds are transferred through multiple accounts), the following legal remedies are available to de-freeze the account: 

​1. Representation to the Cyber Cell and Bank ​The first step is to approach the Investigating Officer (IO) of the Cyber Cell that issued the freeze order. ​Submit a Formal Letter: Provide a detailed explanation of the source of the funds in the account. Attach supporting documents such as salary slips, invoices, or gift records to prove the money is legitimate. ​Request a Partial Freeze: If only a specific amount is disputed (e.g., a suspicious transaction of ₹50,000 in an account containing ₹5,00,000), you can request the IO to instruct the bank to freeze only the disputed amount and allow access to the rest. ​

2. Application under Section 457 of the CrPC (or Section 503 of BNSS) ​If the Cyber Cell does not respond or refuses to de-freeze the account, the lady can file an application before the relevant Magistrate’s Court. ​The Argument: The lawyer should argue that the account holder is not an accused person and that the freeze is causing extreme financial hardship (violating the right to livelihood). ​Conditional Release: The court has the power to order the de-freezing of the account, often on the condition that the account holder executes an "Indemnity Bond" or a "Bank Guarantee" for the disputed amount until the investigation is complete.

 ​3. Writ Petition in the High Court ​If the freeze was done without following due process (e.g., no notice was sent, or the freeze is indefinite without progress in the investigation), a Writ Petition under Article 226 of the Constitution can be filed. ​Grounds for Writ: High Courts have often ruled that freezing an entire account for a small suspicious transaction is "disproportionate." ​Case Law Reference: Courts often cite that the police must inform the Magistrate "forthwith" after a freeze; failure to do so can make the freeze illegal.

 ​4. Responding to the Notice ​Since a notice for investigation has already been issued, the lady must comply with it. ​She should appear (or respond through a legal representative) to provide the "Know Your Customer" (KYC) details and transaction history. ​Cooperation often speeds up the "clean chit" process from the Cyber Cell, which can then send a de-freeze instruction directly to the bank. ​Summary of Documentation Needed: ​Bank statements for the last 6 months. ​Identity proof (Aadhaar, PAN). ​Proof of source of income (ITR, salary certificates, etc.).

 ​Any communication received from the bank or the Cyber Cell. ​Important Note: It is highly recommended to engage a criminal defense lawyer or a cyber-law expert to draft the representations and court applications to ensure the correct legal provisions are cited.

1.  File a detailed representation to the Cyber police explaining full details of the amount received and the source of funds with relevant evidence and request to defreez the account. Alternatively you may file case in magistrate court alongwith all connected evidence of transaction of disputed amount with a request to defreez the account.

Did you file an application before concerned cyber cell (police) for defreezing and reasons for freezing your account ? If so and did not get any satisfactory response, you should show relevant records to a local lawyer for proper appreciation of facts, professional advise and necessary proceeding.

If the cyber crime police have summoned her to participate in the investigation in this regard, she has to appear in person along with all supporting documents and give a statement.

If the police is still not convinced then she may have to challenge the same in the trial court and get the relief.

Whether local jmfc court is embowered to take cognizance?

Please go through the opinion and advise of learned senior experts before jumping into same question, which has already been replied.

The local or jurisdictional JMFC is empowered to take cognizance of the offence 

Of late, High Courts have disapproved the procedure in frezing the entire account. If at all any doubtful transaction, it is only the amount involved in the particular account alone could be frozen.

A Writ Petition in the High Court is the effective remedy.