Rajasthan High Court Sets Guidelines on Bank Account Freezing in Cyber Fraud Cases
The Rajasthan High Court has issued guidelines on freezing bank accounts during cyber fraud investigations. A Single Judge Bench directed authorities to review restraints on accounts—including freezes, debits holds, and liens—in light of the court's new directions.
The court held that terms like "suspicious transactions" or "mule accounts" may justify investigation but cannot justify indefinitely immobilising entire bank accounts. In some cases, disputed transactions were as low as ₹100. Petitioners were neither accused nor suspects, with no evidence of conscious involvement in alleged fraud.
The judgment addressed multiple writ petitions from individuals, firms, and companies seeking defreezing of accounts. The court aimed to protect legitimate investigation interests while safeguarding innocent account holders from arbitrary or disproportionate financial restrictions.
