Bank Account Freezes in Cyber Fraud Cases: An Unsettled Area: An Illustrative Scenario in Ghaziabad

What follows is a fictional, illustrative scenario intended only to demonstrate how the general rules above apply to a typical set of facts. It does not describe a real person, client, or case.

The illustrative scenario

The question

The natural question that follows is:

How the general rule applies

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.

As a general rule, there is, as of the most recent review of this research, no Supreme Court ruling that has settled this disagreement between High Courts.

This is currently unsettled. Different High Courts have taken different views on whether a blanket freeze without Magistrate approval is lawful. Some have held it is not permitted without stating the specific amount or without informing the Magistrate quickly; the Karnataka High Court has taken a more permissive view.

What often gets missed in situations like this

• 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.

Where this scenario is set (Ghaziabad)

• The High Court with jurisdiction is the Allahabad High Court.
• Matters at the district level are generally handled at the Ghaziabad District Court, Raj Nagar.
• The relevant police authority is the Ghaziabad Police Commissionerate.

As noted above, this scenario is a constructed illustration used to explain the general rule — it does not describe a real client, case, or outcome.

For the general rules, see Bank Account Freezes in Cyber Fraud Cases: An Unsettled Area, 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.

Where this applies to a live matter, it is usually worth discussing it in a consultation before acting.

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.