AP High Court Directs Bank to Unfreeze Account Frozen Over Single ₹1,000 UPI Transaction
The Andhra Pradesh High Court has directed State Bank of India to unfreeze a licensed wine trader's current account that was frozen on the basis of a single ₹1,000 UPI transaction. A Single Judge Bench of Justice Ravi Cheemalapati held that freezing the account without verifying the petitioner's involvement in any criminal case and without following due process was illegal and contrary to law.
The petitioner's account was frozen on 19 August 2025 on directions from a Cyber Cell officer in Patna, after a cheating case was registered against a customer who purchased liquor worth ₹1,000 through UPI. The account contained ₹8,26,633 at the time of freezing. The Court observed that in petty business transactions, amounts are routinely transferred through UPI platforms between vendors and buyers, and freezing entire accounts without notice or speaking orders violates principles of natural justice.
