In a writ petition filed before the Andhra Pradesh High Court to direct the action of the respondents 3 to 5 in freezing the petitioner’s bank account with the State Bank of India, Mangalagiri Branch, Guntur (respondent 3) as illegal, arbitrary, and violative of Articles 14, 19(1)(g), 21, and 300 of the Constitution of India while also directing them to defreeze the said account, a Single Judge Bench of Justice Ravi Cheemalapati directed SBI to defreeze the said bank account.
The petitioner was a licensed wine trader and had opened the said current account for his business which was abruptly frozen on 19-08-2025 by SBI. Upon enquiring, a letter dated 15-09-2025 was served on him. A complaint was lodged with the SHO at Bariarpur Police Station (respondent 5) under instructions of the Cyber Cell Officer, Patna (respondent 4) after which the said freezing of the account was done. The petitioner asserted that his account was frozen as one of his customers, who was involved in a cheating case, purchased liquor worth Rs. 1000/- from him and had done the payment via UPI into his bank account.
The Court noted that the petitioner’s bank account was frozen at the instance of the Cyber Cell without notice or following due process of law. Regarding petty businesses, the Court noted that amounts are usually transferred between vendors and vendees through UPI and that the vendor cannot verify the credentials of his customers. It was stated that the authorities could not freeze the petitioner’s bank account without verifying his credentials or noticing his involvement in any criminal case registered against the said customer.
Holding that the manner in which the petitioner’s account was frozen was unsustainable and contrary to law, the Court directed SBI to defreeze his bank account and disposed of the petition.
