In a push for clearer protocols in cyber fraud investigations, the Delhi High Court has urged the Union Ministry of Home Affairs to establish guidelines for freezing bank accounts. This development comes as the Court dealt with a petition concerning a bank account frozen over a mere ₹200 transaction flagged as suspicious.
The Court emphasized the pressing need for a uniform policy, highlighting the surge in cases where blanket freezing of accounts disrupts livelihoods. Justice Manoj Jain underscored the importance of handling such cases with care, caution, and compassion, advocating for a collaborative effort among states and union territories to develop comprehensive procedures.
The petitioner, whose HDFC bank account was frozen on the orders of Maharashtra’s Vartaknagar Police, sought relief from the Court. Justice Jain remarked that law enforcement agencies must balance their discretion with accountability, stating that indiscriminate actions could jeopardize the financial stability of account holders, particularly small vendors.
The Court suggested marking a lien on disputed amounts as a more measured interim solution, mitigating undue hardship while securing contested funds. This approach, it noted, would better align with principles of fairness and efficiency.
During the case proceedings, the Maharashtra Police instructed the bank to de-freeze the account, resolving the immediate issue. However, the Court’s call for systemic reform remains a critical takeaway from this matter, aimed at preventing similar disputes from flooding judicial dockets in the future.
