In cases of bank account freezing related to cybercrime, only the specific disputed amount alleged to be proceeds of crime should be kept in lien, allowing the account holder to utilize the remaining balance.

Order

1. The instant writ petition under Article 226 of the Constitution of India has been filed by the petitioner seeking the following reliefs:-

“It is, therefore, humbly prayed that yours Lordships may graciously be pleased to accept and allow this writ petition by calling the entire record and after perusal of the same:-

(i) Issue a writ in the nature of Mandamus or any other appropriate writ, order, or direction commanding the Respondent Bank to immediately unfreeze the current account of the Petitioner bearing Account No. 922020033287851, held with the Axis Bank.

ii) Order that the respondent Bank shall be at liberty to transfer the amount to the original account from which it was credited to the petitioner's account.

(iii) Direct the Respondent Bank to provide written reasons for the freezing of the account and any communication received from Cyber Crime authorities, if any.

(iv) Declare that the action of the Respondent Bank is arbitrary, illegal, and violative of Articles 14, 19(1) (g), and 300A of the Constitution of India.

(v) Award costs of this petition in favour of the Petitioner.

(vi) Any other appropriate order or direction which is deemed just and proper in the facts and circumstance by this Hon'ble Court may also be passed in favour of the petitioner's committee.”

2. Having considered the facts and circumstances of the case, this Court deems it just and proper to dispose of this writ petition with a direction to the Axis Bank Ltd. (Respondent No.2) to keep the disputed amount (the amount which was transferred illegally in the bank account of the petitioner) frozen and allow the petitioner to make transactions from its bank account from the remaining balance.

3. It is further made clear that in case, the respondent – Bank has not received the information regarding the exact figure of the disputed amount, which the Investigating Officer/Police alleges to be receipt(s) of the offence, the bank shall send a communication to the concerned Investigating Officer/Police, to indicate the amount to be earmarked for lien, while endorsing a copy of the instant order.

4. Upon receipt of such communication/letter, the concerned Investigating Officer/Police shall be under an obligation to apprise the respondent - Bank about the amount to be kept in lien, within a period of seven days of receiving the communication from the respondent - Bank. The respondent – bank shall thereafter do the needful as directed herein above.

5. It is further made clear that in case, the respondent-Bank does not receive any reply from the concerned Investigating Officer/Police, then it shall be duty bound to act in accordance with the instant order.

6. Stay petition as well as all pending application, if any, stand disposed of.