13/10/2025
What to Do If Your Bank Account Is Frozen by Another State in a Cyber Fraud Case – Legal Guide (BNSS, 2023)
With the enforcement of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), the procedure for freezing and defreezing of bank accounts in India is now governed by the new provisions. Thousands of citizens find their accounts frozen by cyber police from other states when suspected of involvement in online frauds. Many times, people are innocent victims whose accounts are misused.
Here’s what you should do, step by step, under the BNSS framework.
1. Why Was Your Account Frozen?
Under Section 105 BNSS (corresponding to old Sec. 102 CrPC), the police can seize property, including a bank account, if they believe it is linked to an offence.
The freezing is usually done through:
• An order/request from Cyber Police of another state,
• A direction from the Investigating Officer (IO) during probe,
• Sometimes a court’s order.
Immediately ask your bank for:
• A copy of the freezing order / letter from police,
• FIR number, police station & state details.
The bank is obliged to inform you.
2. Collect Documents for Your Defence
Prepare:
• KYC documents (PAN, Aadhaar, etc.),
• Bank statements (6–12 months),
• Proof of legitimate transactions,
• Any communication with bank/police.
This will help show you are not involved in fraud.
3. Contact the Investigating Officer (IO)
Once you know which state’s cyber police froze the account:
• Call or email the IO,
• Ask about: FIR details, sections invoked, allegation against you.
Sometimes accounts are frozen in bulk and get released once clarification is provided.
4. File a Representation
Draft a representation to the IO and your bank stating:
• You are not involved in fraud,
• Funds are legitimate,
• You are willing to cooperate.
Attach all supporting documents.
5. Legal Remedies Under BNSS
If the IO does not release your account, you can approach courts under BNSS:
Application Under Section 105(3) BNSS
• You can approach the Jurisdictional Magistrate in the state where the FIR is registered.
• The Magistrate can order defreezing of your account if no direct involvement is found.
Petition Before High Court (Article 226 of Constitution)
• File a Writ Petition in your High Court (or the High Court of the state where the FIR is lodged).
• Argue violation of your fundamental rights (livelihood, financial liberty).
Courts have held that prolonged freezing without hearing the account-holder is unjust.
Approach Local Cyber Police / Cyber Portal
• File a complaint before your local cyber police station,
• Or raise a grievance via the National Cyber Crime Portal cybercrime.gov.in,
• They will coordinate with the other state’s police.
6. If You Are Only a Victim, Not an Accused
If your account was misused (e.g., fraudster transferred money into it):
• File a counter-complaint stating you are a victim, not accused.
• Seek acknowledgment to that effect.
7. Partial Defreezing for Survival Needs
Under BNSS, you can request the IO or Magistrate for conditional relaxation, allowing withdrawals for:
• Medical needs,
• EMI / loan payments,
• Business operations,
• Daily livelihood.
Courts usually permit this.
8. Get Legal Assistance Quickly
Delays can worsen matters – you might face summons, multiple accounts seizure, or even a charge-sheet. With timely legal representation, accounts can often be defrozen within 2–4 weeks.
9. Prevention Tips
• Avoid accepting money from unknown persons.
• Keep records of all payments.
• Don’t share bank details casually.
• Report suspicious credits/debits immediately.
Conclusion
A frozen account due to cyber fraud investigation is distressing, but the BNSS, 2023 gives you remedies. You can:
• Apply before the Magistrate under Section 105 BNSS,
• File a Writ Petition in the High Court,
• Or submit representations to police & bank.
Your constitutional right to livelihood cannot be permanently blocked without due process. With proper legal steps, you can regain access to your account.
