The Supreme Court on Tuesday agreed to examine a public interest plea seeking the formulation of a uniform Standard Operating Procedure (SOP) for freezing and de-freezing of bank accounts during cybercrime investigations. The petition raises concerns over arbitrary actions by investigating agencies that allegedly violate citizens’ fundamental rights.
A bench comprising Justices Pankaj Mithal and SVN Bhatti issued notice to the Union Government and directed that a copy of the petition be served on the Centre within three days. The matter has been listed for hearing next week.
The petition, filed by Vivek Varshney through advocate Tushar Manohar Khairnar, alleges that his bank account was frozen by the Tamil Nadu Cyber Cell without any prior notice, communication, or judicial oversight. The petitioner claimed that the action amounted to a violation of his rights under Articles 19(1)(g) and 21 of the Constitution, which guarantee the right to practice any profession and the right to life and personal liberty, respectively.
He submitted that the account freeze had caused “complete financial paralysis,” restricting his ability to meet essential expenses, pay taxes, and fulfill personal and professional obligations.
The petitioner urged the apex court to direct the Centre and the Reserve Bank of India (RBI) to frame a uniform SOP that would apply across states, ensuring that no bank account is frozen without a written, reasoned order and intimation to the account holder within 24 hours. It further sought that all such actions be mandatorily reported to the jurisdictional magistrate, as required under Section 102(3) of the Code of Criminal Procedure (CrPC) and the corresponding Section 106(3) of the new Bharatiya Nagarik Suraksha Sanhita (BNSS).
“There is currently no uniform procedure,” the petition noted, “resulting in inconsistent practices and prolonged deprivation of financial rights.” It warned that in the absence of procedural safeguards, investigative actions could cause undue hardship to innocent citizens whose accounts might be linked to suspicious transactions without any established culpability.
The plea seeks:
- Immediate de-freezing of the petitioner’s bank account(s)
- Directions to the Centre and RBI to frame national SOPs for account freezes
- Judicial oversight and adherence to statutory requirements under CrPC/BNSS
- A mandate that only the specific amount allegedly involved in a crime be frozen, not the entire account balance
The petitioner claimed that his account had been frozen in connection with a jewellery sale transaction and emphasized that unless a person is proven to be complicit in the alleged crime, their entire bank account should not be frozen.
Recognizing the rising number of such cases, the petition also urged the Court to direct the Ministry of Home Affairs to formulate a uniform national policy to govern cyber cell actions regarding account freezes.
The court’s decision to consider the matter could potentially lay the groundwork for clearer procedural norms in cybercrime-related financial probes.
