The Karnataka high court has declined a request that sought mandatory notices before authorities freeze bank accounts linked to cybercrime complaints. This decision came after the central government informed the court that a draft standard operating procedure for handling cybercrime cases is already being shared with stakeholders for review.
During the hearing, the deputy solicitor general presented the draft SOP prepared for the National Cybercrime Reporting Portal. The document covers the Citizen Financial Cyber Fraud Reporting and Management System and sets guidelines for custody of funds, money restoration, and grievance redressal. The court recorded that the final version of this SOP will be completed after receiving inputs from all relevant parties.
With this update, the division bench led by Chief Justice Vibhu Bakhru and Justice CM Poonacha disposed of a public interest petition filed by Bengaluru resident Pavan Vijay Sharma. His petition argued that a show cause notice should be issued before freezing a bank account and requested the creation of clear guidelines for this process.
The petitioner drew attention to the sharp rise in cybercrime complaints, which increased from 4.6 lakh in 2012 to about 22.6 lakh in 2024. Government counsels countered that issuing notices before freezing accounts could slow down efforts to recover funds. They explained that quick action is essential to prevent further loss of money.
The Chief Justice highlighted the importance of immediate intervention, stating that the first hour is called the golden hour. The court noted that authorities cannot be expected to issue notices before freezing an account if quick action is needed. He pointed out that in cases where credit cards are misused and funds are transferred, freezing the account is crucial. He stressed the plight of victims, especially senior citizens, who lose their life savings.
The bench clarified that the order does not stop any individual or organisation from pursuing legal remedies if they believe their account has been wrongly frozen or if they feel affected by such action.
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