Kerala High Court Mandates Caution in Handling Writ Petitions for De-freezing Bank Accounts Amidst Rising Financial Cyber Fraud Cases

Court Directs Impleadment of Local Police Stations to Verify Authenticity of Petitioners and Prevent Judicial Misuse

In a significant ruling, the Kerala High Court has emphasized the need for stringent measures while dealing with writ petitions seeking the de-freezing of bank accounts, particularly in cases involving financial cyber fraud. The court highlighted the alarming rise in such cases and underscored the necessity to ensure that petitions are genuinely filed by the individuals named, thereby preventing the judicial process from being exploited by fraudsters.

Presiding Judge Mr. M.A. Abdul Hakhim, in his order dated December 10, 2025, outlined the court's observations regarding the frequent instances where petitions are filed without adequate material facts or by individuals potentially involved in cyber fraud. The court noted that many of these petitions lack sufficient details about the petitioner's business transactions or the nature of their business, raising suspicions about their legitimacy.

The court has directed that the Station House Officer (SHO) of the police station covering the petitioner's address be impleaded in all such writ petitions. This step aims to confirm the authenticity of the petitioner and ensure that the petitions are not being misused by wrongdoers to escape accountability for financial cyber fraud. The court also instructed its registry to enforce this directive before numbering the petitions.

The court further remarked on procedural violations concerning the freezing of accounts by banks, either on their own suspicion or upon requisitions from police authorities. It stressed that procedural lapses do not automatically warrant relief for petitioners if there is credible reason to suspect that the accounts were used to facilitate cyber fraud. The ruling also shed light on the misuse of court jurisdiction through unauthorized filings and forged documents, urging the need for verifying the credibility of petitioners.

In addressing the complexity of these cases, the court acknowledged the challenges posed by the non-cooperation of requisitioning authorities from outside Kerala, which complicates identifying culprits and victims of cyber fraud. The court's decision to involve local law enforcement is seen as a proactive measure to curb the misuse of its jurisdiction and protect victims of financial cyber fraud.

The case has been adjourned for further proceedings on December 15, 2025, as the court continues its efforts to uphold the integrity of the judicial process in the face of sophisticated financial crimes.

Bottom Line:

The Kerala High Court emphasizes the need for caution while dealing with Writ Petitions seeking de-freezing of bank accounts, especially in cases involving financial cyber fraud, to ensure that the petitions are filed by genuine individuals and not misused by wrongdoers.

Statutory provision(s): Article 226 of the Constitution of India

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