The Madhya Pradesh High Court has directed IDFC First Bank to unfreeze the bank account of Dekain Perfect Tech Ksolution Private Limited, while ordering that the amount disputed in connection with an alleged cyber fraud be kept in a fixed deposit until appropriate orders are passed by the jurisdictional Magistrate.
The case arose after the petitioner’s bank account maintained with IDFC First Bank was frozen and a lien was marked on it pursuant to instructions issued by investigating agencies in connection with an alleged cyber fraud. Challenging the action, the petitioner approached the High Court, contending that the account had been frozen without due process and sought directions to remove the lien and permit normal operations of the account.
Justice Subodh Abhyankar disposed of the writ petition after holding that the case was squarely covered by the Court’s earlier ruling in Malcolm Murayis v. State Bank of India, W.P. No. 1100 of 2024, which laid down safeguards against indefinite freezing of bank accounts merely on the basis of requests from investigating agencies.
Relying on the earlier precedent, the Court directed the bank to retain only the disputed amount in a fixed deposit. The fixed deposit can be liquidated only after orders are passed by the competent Judicial Magistrate within three months, during which the police are expected to proceed in accordance with the relevant provisions of the Bharatiya Nagarik Suraksha Sanhita (BNSS) or any other applicable law. If no such orders are obtained within the stipulated period, the petitioner would be entitled to withdraw the amount after informing the investigating agency.
The Court also specifically directed that the petitioner’s bank account be unfrozen.
