The court established that freezing a bank account requires clear suspicion and a direct link to alleged criminal activity to prevent misuse of authority.

JUDGMENT

Petitioner is aggrieved by a communication dated 29.12.2022 issued by the Cyber Crime Police Station directing freezing of his account maintained by the petitioner with the Ratnakar Bank Ltd.

2. Petitioner claims to be doing business in trading of shares and crypto currency. Alleging that one Muhammed Sahil was cheated by an accused who fraudulently collected Rs.1,50,500/-, a notice was issued under Section 91 of the Code of Criminal Procedure , 1973 to the petitioner's bank directing freezing of his bank account. The notice alleged that the amount so fraudulently collected by the accused was seen transferred to the account of the petitioner maintained with the Ratnakar Bank Ltd. and deposited into Account No.407002482275 through transaction ID No.233119540539.

3. Petitioner contends that there is no transaction or relationship between the complainant Muhammed Sahil and the petitioner and petitioner is not even an accused in the crime and further that no procedure under Section 102 of the Code of Criminal Procedure , 1973 was complied with by the Investigating Officer before directing freezing of his account.

4. In the statement of facts filed on behalf of the first respondent, it was stated that, the National Cyber Crime Cell received a complaint from Sri.Muhammed Sahil stating that he had received a message through his Instagram account for an online trading and he invested certain amounts and lost Rs.1,50,500/- from his Federal Bank Account on 27.11.2022. On verification of the transaction details, it was identified that the amount fraudulently taken from the said Sri. Muhammed Sahil's account was transferred to the writ petitioner's account on the same day and maintained with the Ratnakar Bank Ltd.

5. The statement of the respondents also refer to a detailed enquiry conducted tracing the transaction of Rs.1,50,500/- on 27.11.2022 transferred to Federal Bank Account No.18410200004977 and again on the same day itself transferred Rs.1,46,000/- from the above mentioned account to another account with No.10090100391126 and thereafter transferred Rs.1,41,522.2 to the petitioner's account No.407002482275 maintained with Ratnakar Bank Ltd. The Inspector of Police has filed a further statement, stating that even though petitioner was directed to refund the amount, he refused to do so and it was in such circumstances that his account was frozen. It is further stated that the transaction in the petitioner's account was found to be highly suspicious and a meeting was conducted by the National Cyber Crime Cell on 10.03.2023 and it was informed that due to an alleged fraudulent transaction, the entire bank account need not be frozen and only the particular disputed amount has to have a lien in the account and therefore, a request was sent to the bank authorities for marking a lien on the disputed amount of Rs.1,41,522.2.

6. According to the Inspector of Police, there have been other credits and debits into petitioner's account and that even though the writ petitioner claims to be a businessman, he has hidden his legal source of money and the nature of business being conducted by him. The amount transferred to his account has not been fully justified by proving the legal source and he refused to return the amount also. It is also alleged that petitioner has failed to reveal the identity of the person who send the fraudulent amount and the purpose and therefore it was suspected that the two account holders are acting as a team. It was further stated that the writ petitioner and one Ameer Hassan are suspects in the case.

7. Sri.Muhammed Sahil had complained about loss of Rs.1,50,500/- which was utilised for trading based upon offers of huge profits through online trading. Crime No.15/2023 of the Cybre Crime Police Station, Cochin was registered for the offence under Section 406 and 420 IPC. Admittedly, petitioner has not yet been arrayed as an accused. Without being arrayed as an accused, his account has been frozen.

8. In the decisi