Petition challenges freezing of bank accounts in cybercrime investigations

The Hindu
The Hindu
8h ago
The Supreme Court agreed to examine a petition seeking a uniform SOP and guidelines for freezing and de-freezing bank accounts in cybercrime investigations, citing alleged arbitrary freezing of a petitioner’s account by a Tamil Nadu Police cyber cell.
Petition challenges freezing of bank accounts in cybercrime investigations
A What happened
The Supreme Court agreed to examine a petition seeking directions to the Centre and the Reserve Bank of India to formulate a uniform Standard Operating Procedure for freezing and de-freezing bank accounts during cybercrime investigations. The petitioner, Vivek Varshney, said the Cyber Cell of Tamil Nadu Police arbitrarily froze or held his bank account(s) without prior notice, communication, or judicial approval, and said this caused complete financial paralysis. The plea sought guidelines requiring a written, reasoned order and intimation to the account holder within 24 hours of freezing. The plea said there is no uniform procedure nationwide, leading to inconsistent practices and prolonged freezing periods.
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Key insights

  • 1

    Petition seeks written orders and rapid notice for account freezes: The plea sought guidelines requiring a written, reasoned order for freezing a bank account and intimation to the account holder within 24 hours.

  • 2

    Petition cites statutory reporting requirement to a magistrate: The plea cited Section 106(3) of BNSS and Section 102(3) of the Cr.P.C. as requiring seizure or freezing of property to be forthwith reported to the jurisdictional magistrate.

  • 3

    Petition argues for limits on freezing amounts without proof of complicity: The plea sought a rule that an entire bank account, or amounts beyond the alleged amount involved, should not be frozen unless the account holder is proven complicit in a crime.

Takeaways

The Supreme Court has agreed to examine the petition seeking uniform nationwide procedures and safeguards for freezing and de-freezing bank accounts in cybercrime investigations.

Topics

Technology & Innovation Cybersecurity World & Politics Policy & Regulation Law & Public Safety Crime & Justice Courts

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