Supreme Court favours creation of Uniform Rules for Freezing of Bank Accounts by Agencies
In an important development, the Supreme Court of India has directed that a plea seeking uniform rules for freezing and de-freezing of bank accounts during cybercrime investigations be placed before the Chief Justice of India Surya Kant. The Court noted that a CJI-led Bench is already examining similar concerns in a suo motu case related to “digital arrests” and cybercrime practices.
The direction was passed by a Bench of Justices Pankaj Mithal and S.V.N. Bhatti after the Centre informed the Court that key issues raised in the present petition overlap with those already under consideration in the suo motu matter. Additional Solicitor General Anil Kaushik told the Court that some of the prayers in the petition are already being examined by another Bench. Based on this, the Court asked the Registry to take orders from the Chief Justice and list the matter before the appropriate Bench.
Earlier, on January 6, the Supreme Court had issued notice in this case, which was filed under Article 32 of the Constitution. The petition challenges what it calls arbitrary freezing of bank accounts by Cyber Cells in different States without prior notice, judicial approval, or proper safeguards. The plea was filed by Vivek Varshney and Sudhir Kumar, who alleged that their bank accounts were frozen without any information or permission from a court, leaving them financially helpless.
According to the petitioners, the account freeze stopped them from meeting daily expenses, paying taxes, and fulfilling professional commitments. They argued that such action violates their fundamental rights under Articles 19(1)(g) and 21 of the Constitution. The plea also pointed out that the law requires any freezing or seizure of property to be immediately reported to a Magistrate, a step that was allegedly not followed in their case.
The petition highlights a larger nationwide problem. It says there is no uniform Standard Operating Procedure for freezing and unfreezing bank accounts during cybercrime or financial investigations. Because of this, people in different States face different rules, long delays, and loss of access to their own money without due process. The plea argues that simply linking an account to a “suspicious transaction” should not justify freezing the entire account unless the account holder is clearly involved in the crime.
The petitioners have asked the Supreme Court to order immediate de-freezing of their accounts, frame uniform national guidelines, and direct the Ministry of Home Affairs and the Reserve Bank of India to prepare a clear and fair SOP. They warned that the absence of limits and oversight has led to misuse of powers, causing unnecessary hardship to ordinary citizens.
With the matter now set to be placed before the Chief Justice, the Court’s final decision could play a key role in protecting citizens’ rights while balancing the needs of cybercrime investigations.
- Download Court Order PDF (This PDF is available for Premium Users Only. Click here to join premium)
