DGP Has Asked Investigating Agencies To Be ‘Careful’ While Issuing Letters To Banks For Freezing Accounts: State To Rajasthan High Court

 

While hearing a case over whether bank accounts can be frozen simply by a letter from a police or investigating agency without following the procedure under Section 102 of the Cr.P.C., the Rajasthan High Court has noted that the State has framed specific guidelines to govern such freezing of accounts. The Court had issued a general notice inviting arguments from the bar on this issue. In this context, the State produced that the Director General of Police (Cyber Crime), on 9 May 2025, issued a six-point guideline to be followed by all Superintendents of Police and Assistant Commissioners of Police. These guidelines direct investigating agencies to exercise caution when issuing letters to banks for freezing bank accounts. The State further submitted that the guidelines have already been given effect and are being adhered to in every relevant matter.

It was also submitted to the Court that for complaints emanating from other States, the Ministry of Home Affairs is in the process of framing a nationwide standard operating procedure (SOP) in response to similar concerns. An additional submission was that the Reserve Bank of India is a necessary party in such matters given its regulatory authority over the banking system and that the RBI’s position should also be considered. Another advocate pointed out that in a case before the Jharkhand High Court, a similar issue had arisen, and it was submitted that the proposed SOP in that State is nearly finalized and would be adopting principles alike.

Given these developments, the Rajasthan High Court directed that this matter be re-notified in the first week of October 2025, after publication in the cause list, to allow members of the Bar to address the issue in greater detail.

In the same order, the Court granted relief to a petitioner, a kachori seller, whose account at Bank of Maharashtra had been frozen on the basis of allegations of fraudulent transactions lodged via the National Cyber Crime Reporting Portal. It was alleged that large sums had been siphoned from the complainant’s (i.e. the petitioner’s) account by unknown persons in the course of cyber crime investigations. The petitioner, however, had not been shown to be involved in any wrongdoing; no material had been placed on record to connect him with the alleged cyber crimes. On this basis, the Court ordered the bank account to be de-frozen and disposed of the petitioner’s plea.

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