Bank account freezes in cyber fraud cases, explained in plain terms, under Indian law.
The legal basis police use to freeze accounts in cyber fraud investigations, and why High Courts currently disagree on its limits.
The legal position
BNSS s.106 allows police to seize property, including bank balances, and report the seizure to a Magistrate. BNSS s.107 is a newer provision allowing a Magistrate to order attachment of proceeds of crime, on a police application approved by an officer of SP/CP rank.
High Courts currently take different views on how far police can go without prior Magistrate approval: Kerala, Bombay (Nagpur bench), and Allahabad (Lucknow bench) have taken a more restrictive view, while the Karnataka High Court (13 Aug 2026) has taken a more permissive one.
Typically, there is, as of the most recent review of this research, no Supreme Court ruling that has settled this disagreement between High Courts.
An MHA standard operating procedure from January 2026 provides that amounts held under ₹50,000 can be refunded without a court order, and that a hold must be lifted after 90 days if no court or restoration order has been made.
Common pitfalls
There are a few traps worth watching for.
- Assuming the rule is the same everywhere in India — this is genuinely an unsettled, High-Court-split area, so the position can differ by state.
- Not following up after 90 days — the MHA SOP provides for the hold to lift absent a court or restoration order.
- Treating a frozen account as resolved once a complaint is filed — you may still need to actively pursue release through the GRM/MRM portals or the court.
For related reading, see Digital Arrest Scams: How They Work and What the Supreme Court Has Directed and Where to Report Cyber Fraud: Portals, Helplines, and e-Zero FIR.
If you would like this looked at against your own facts, a consultation is a reasonable next step.
This page is general information about the law in India and is not legal advice. The position can vary with the facts, so it is worth getting advice on your specific situation.
This page provides general information about the law in India and is not legal advice. For advice on your specific situation, please consult a qualified advocate.