Case Title: Dr. Sajeer v. Reserve Bank of India & Anr. and other connected matters.
Introduction
Welcome to the official blog of the Law Offices of Kr. Vivek Tanwar Advocate and Associates, where we are dedicated to providing litigation support services for matters related to Cybercrime. In today’s blog post, we aim to shed light on the prevailing issues surrounding Cybercrime, the legal framework for their protection, and the steps we can take as a society to combat these acts. Join us as we explore this critical subject and empower you with the knowledge to protect your rights and safety.
In a recent legal development, the Kerala High Court has issued a significant directive that sheds light on the freezing of bank accounts in cases related to the transfer of funds via the UPI (Unified Payments Interface) platform as part of cyber financial crimes. The directive is aimed at curbing the practice of freezing entire bank accounts and, instead, restricting such orders to the precise amount specified in the requisitions issued by police authorities.
The Background
The case before the Kerala High Court revolved around multiple pleas submitted by individuals whose bank accounts had been frozen due to the receipt of funds via UPI from unidentified sources, which were linked to cyber financial crimes. The affected parties primarily consisted of retailers and small business owners who were grappling with the economic and personal repercussions of these freezing actions.
Court’s Insights and Verdict
The court expressed concerns over the wholesale freezing of bank accounts when requisitions explicitly mentioned the suspected amount to be credited. The court emphasized that unless an ongoing investigation conclusively implicates the account holders in the cybercrime, they should not be treated as accused parties.
The petitioners highlighted the severe consequences of having their accounts frozen and called for safeguards to restore trust in the UPI system. While the court recognized its limited authority during ongoing investigations, it acknowledged the necessity for protective measures regarding UPI transactions.
Consequently, the Kerala High Court’s directive instructs banks to freeze accounts only up to the specified amount in requisitions and requires police authorities to communicate with banks regarding the continuation of freezing orders. Banks must follow police instructions, and in cases where no guidance is provided, affected individuals have the option to approach the court for relief. This ruling seeks to strike a balance between combating cyber financial crimes and ensuring that innocent account holders do not suffer undue consequences by having their entire accounts frozen.
Conclusion
In conclusion, the recent directive from the Kerala High Court represents a significant step towards safeguarding individuals and businesses in the realm of cyber-financial crimes. By limiting the freezing of bank accounts to the precise amounts mentioned in police requisitions, the court addresses concerns of overreach and its potential economic consequences. This directive not only seeks to strike a balance between combating cyber financial crimes but also emphasizes the importance of trust and protection within the UPI system. It underscores the court’s commitment to ensuring that innocent account holders do not bear the brunt of undue consequences, making it a noteworthy development in the legal landscape
We are a law firm in the name and style of Law Offices of Kr. Vivek Tanwar Advocate and Associates at Gurugram and Rewari. We are providing litigation support services for matters related to CyberLaws.