SC To Examine Plea For SOP On Freezing, De-freezing Of Bank Accounts In Cybercrime Cases

New Delhi: The Supreme Court on Tuesday agreed to examine a plea seeking directions to the Centre and the RBI to formulate a uniform standard operating procedure (SOP) governing freezing and de-freezing of bank accounts during cybercrime investigations.

The matter came up before a bench comprising justices Pankaj Mithal and SVN Bhatti. The bench asked a copy of the petition to be served on the Centre within three days, and listed the matter for next week.

The plea also sought the issuance of appropriate guidelines to all investigating agencies, including cyber cells across the country, to ensure that no bank account is frozen without a written, reasoned order and intimation to the account holder within 24 hours of such action.

The plea filed by petitioner Vivek Varshney, through advocate Tushar Manohar Khairnar, that he was aggrieved by the "arbitrary freezing/holding" of his bank account(s) by the Cyber Cell of Tamil Nadu police allegedly without any prior notice, communication or judicial approval, thereby violating his fundamental rights under articles 19(1)(g) and 21 of the Constitution.

"Direct the respondent Union of India and the Reserve Bank of India to formulate a uniform Standard Operating Procedure (SOP) governing freezing and de-freezing of bank accounts during cybercrime investigations, so as to prevent arbitrary action and ensure procedural fairness nationwide," the plea said.

The petitioner claimed that the freezing order in his case has resulted in complete financial paralysis, restricting him from carrying out his professional and personal obligations, including payment of essential expenses, taxes and liabilities.

"It is respectfully submitted that Section 106(3) of BNSS/ 102(3) of the Cr.P.C. mandates that any seizure or freezing of property must be forthwith reported to the jurisdictional magistrate. However, in the instant case, no such compliance has been made. The action of the respondents is, therefore, without jurisdiction, arbitrary, and unconstitutional," it said.