The Kerala High Court has directed the police to register an organized crime case against a 21-year-old woman after dismissing her petition to unfreeze a bank account linked to suspected cyber fraud.
Justice M A Abdul Hakhim rejected the petitioner’s request to withdraw her plea, ordering the Tanur Police Station’s station house officer to register a First Information Report (FIR) under Section 111 of the Bharatiya Nyaya Sanhita, 2023. The court ruled that police must investigate the matter to determine if others were operating through or alongside the petitioner.
Rise Of Money Mules Among Young Adults
The July 10 court order highlighted a troubling trend where individuals who have recently reached adulthood open multiple bank accounts to serve as money mules. According to the court, some young people view maintaining these accounts as an effortless method to generate income.
In such schemes, illicit funds from cyber crimes are split into smaller amounts and transferred through a network of bank accounts to prevent authorities from tracing or recovering the money. Account holders typically receive a portion of the transferred funds as compensation for facilitating the illegal money trail. The court observed that while technological advancements and digital transactions have simplified daily life, they have also made it easier for fraudsters to operate, turning cyber fraud into a form of organized crime.
Court Flags Exploitation Of Junior Lawyers
The judgment also raised concerns regarding the growing involvement of junior legal professionals in filing petitions to unfreeze these accounts. The court noted that cybercriminals or their associates frequently use young lawyers to submit standardized petitions in an attempt to keep mule accounts active, often without the actual account holders being aware.
According to the court, some junior advocates have turned to this practice because it offers an easy workflow with highly predictable outcomes, as courts often allow accounts to remain operational while restricting only the disputed funds. However, the court clarified that many junior lawyers continue to represent legitimate account holders in genuine disputes.
While praising the talent, moot court experience, and practical skills of young law graduates, the court sought explanations from certain lawyers who reportedly filed petitions using fabricated affidavits, vakalats, or petitions, or without client authorization. The judge remarked that some legal submissions indicated a lack of basic legal knowledge and stated that the court has yet to determine what actions will be taken against those involved.
Unemployed Petitioner Fails To Document Income
The specific case involved a Kerala Gramin Bank account belonging to the unemployed petitioner. Access to the account had been restricted after the Madurai police flagged a suspicious transfer of Rs 3.5 lakh.
The petitioner argued that the funds were legitimate earnings from stock market investments and USDT cryptocurrency trading conducted on the Binance application, though she admitted she did not know the origin of the money.
The court dismissed the petition after noting that the woman had no stable source of income or employment and failed to provide any documentary evidence supporting her claims of legitimate cryptocurrency trading. The court also declined her counsel’s attempt to withdraw the petition, noting that applicants frequently seek to default or withdraw such cases once it becomes clear that the court will not rule in their favor.
