🔍 Introduction
In a significant relief to individuals and businesses facing bank account freezes due to cyber-crime or fraud investigations, the Rajasthan High Court has clarified an important principle:
Only the disputed amount allegedly linked to the offence can be frozen not the entire bank account.
This ruling protects citizens from arbitrary and excessive financial hardship caused by blanket freezing of accounts, a problem increasingly faced across India.
⚖️ What the Court Held
The Rajasthan High Court laid down the following clear guidelines:
✅ 1. Entire account cannot be frozen arbitrarily
Banks and investigating agencies cannot freeze the full balance when only a specific amount is under dispute.
✅ 2. Only the disputed amount may be restricted
The bank must earmark or lien only the alleged disputed sum, allowing the account holder to freely operate the remaining balance.
✅ 3. Duty of Investigating Officer (IO)
If the bank does not know the exact disputed amount, it must:
• Write to the Investigating Officer
• Seek clarification of the exact amount involved
The IO is required to respond within a reasonable time (usually 7 days).
✅ 4. Failure of IO has consequences
If the IO fails to respond, the bank cannot continue freezing the entire account indefinitely.
🚨 Why This Judgment Is Important
Blanket account freezes often result in:
• Salary accounts becoming unusable
• Business operations coming to a halt
• Inability to pay EMIs, vendors, or employees
• Severe violation of Article 21 (Right to Life & Livelihood)
The Court emphasized proportionality, holding that financial restrictions must match the alleged offence — not exceed it.
🧑⚖️ Legal Remedy Available to You
If your bank account has been fully frozen due to:
• Cyber fraud complaints
• Online transaction disputes
• Alleged mule account accusations
• FIR under IT Act / IPC provisions
You can:
• File a representation to the bank
• Approach the Investigating Officer
• Move the High Court under Article 226
• Seek partial defreezing / lien marking only
⸻
📌 How Shekhawat Legal Can Help
At Shekhawat Legal, we regularly assist clients in:
• Drafting legal representations to banks
• Filing writ petitions for account defreezing
• Challenging illegal cyber-crime freezes
• Securing urgent interim relief from High Court
📍 Practising before Rajasthan High Court & District Courts
❓ Frequently Asked Questions (FAQs)
Q1. Can a bank freeze my entire account for a cyber complaint?
No. As per recent Rajasthan High Court rulings, only the disputed amount can be frozen, not the entire balance.
Q2. What if the bank says police ordered a full freeze?
Police instructions must also follow constitutional principles. Courts have held blanket freezes illegal.
Q3. What if the disputed amount is not mentioned?
The bank must seek clarification from the Investigating Officer. Until then, indefinite full freeze is not permitted.
Q4. Can I approach the High Court directly?
Yes. A writ petition can be filed for violation of fundamental rights and arbitrary action.
Q5. How long does defreezing take?
With proper documentation, courts often grant urgent interim relief
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