Court Directs Bank to Allow Transactions Except for Disputed Amount in Cybercrime Investigation
In a significant ruling, the Rajasthan High Court, presided over by Justice Sunil Beniwal, addressed a writ petition filed by Vatsal Bindal seeking relief from the freezing of his bank account due to a cybercrime complaint. The decision, dated January 21, 2026, mandates that only the disputed amount linked to the alleged cybercrime be kept frozen, allowing the petitioner to access and transact with the remaining balance in his account.
The petitioner, represented by Advocate Aman Khan, argued that the freezing of his entire bank account was unjust, especially when only a specific amount was under scrutiny due to the cybercrime complaint lodged at Bhagat-Ki-Kothi Police Station, Jodhpur. The petitioner sought the unfreezing of his account (account no. 38210100005316) and requested that future actions of freezing be conducted with prior notice.
Referring to a similar case, Sita Ram v. Bank of Baroda, the counsel for the petitioner urged the court to apply the same principles in this case. The court concurred, directing the respondent bank to maintain the freeze solely on the disputed amount, while permitting the petitioner to conduct transactions with the remaining funds.
Furthermore, the court ordered the bank to seek precise information from the investigating authorities regarding the disputed amount. Should the bank fail to receive a response within the specified time, it is instructed to completely unfreeze the petitioner's account.
This ruling is significant as it balances the needs of ongoing investigations with the rights of account holders to access their lawful funds. The decision ensures that only funds directly associated with alleged criminal activity are restricted, thereby allowing individuals to continue their financial activities with minimal disruption.
The court's directive also emphasizes the responsibility of investigative bodies to promptly communicate with financial institutions, ensuring clarity and efficiency in handling such cases. The stay petition and all pending applications related to the case were also disposed of with this ruling.
Bottom Line:
Bank account frozen due to a cybercrime complaint - Relief sought for unfreezing and permitting transactions from the account, except for the disputed amount related to the alleged offence. Directions issued for handling the disputed amount and subsequent steps to be taken by the bank and investigating authorities.
Statutory provision(s): Article 226 of the Constitution of India
Vatsal Bindal v. State of Rajasthan, (Rajasthan) : Law Finder Doc Id # 2842094
