Demat account Unfreeze

Dear Client,
Once a cybercrime scam involving suspicious or fraudulent transactions is reported online to the National Cyber Crime Reporting Portal(NCCRP), on the instruction of the Cyber Crime Cell, the investigating team starts the routine process of investigation immediately freezing the suspected bank accounts linked to fraudsters and the victim's Bank account putting a lien on the entire balance/deposits of the respective accounts. But, a Bank cannot freeze on entire deposit of the account more than the disputed amount involved in the scam on blanket manner. The Kerala High Court in the case of Dr. Sajir v. Reserve Bank of India, 2023, held that based on principles of proportionality and fairness, freezing orders should be restricted to the specific sum connected to an offense rather than the entire account balance. Further, the Delhi High Court in the case of Pawan Kumar Rai v. Union of India, 2024, criticized the practice of freezing entire accounts, particularly in the case of a street vendor whose account was frozen over a ₹105 cyber fraud. The court stressed that such blanket orders violate the right to livelihood and urged agencies to use alternative measures, such as placing a lien on the specific disputed amount. There are several orders/judgments passed by the different High Courts including the Supreme Court holding that police or bank cannot freeze a person's entire bank account in a financial fraud case save and except the disputed amount involved. However, a victim of cyber scam can file a petition under Section 457 of the Cr. PC(now Section 497 of the BNSS) before the court of Judicial Magistrate praying for unfreezing of a frozen bank account which was frozen more than disputed amount involved in the scam.. Section 457 of the Cr PC empowers a Magistrate to use their discretion to order the conditional release of the amount frozen or put on hold under a cyber scam. If you encounter difficulties or need assistance with the legal procedures, consult with a cyber expert or a lawyer specializing in cyber and banking law to navigate the issues effectively.