- Ask the bank in writing who requested the freeze, when and under which provision.
- Police seizure is now under Section 106 of the BNSS (earlier Section 102 CrPC) and must be reported to the magistrate.
- You can apply to the magistrate for release, and a High Court can intervene where a freeze is disproportionate.
- Courts often limit a freeze to the disputed amount instead of the whole account.
On this page
Bank account frozen due to suspicious activity: who froze it?
| Who | Usual reason |
|---|---|
| Police, often after a cyber crime complaint | Seizure of suspected proceeds under Section 106 BNSS |
| The bank itself | Incomplete KYC or unusual transactions under RBI rules |
| Income Tax Department | Provisional attachment to protect tax revenue |
| GST authorities | Provisional attachment during proceedings |
| Enforcement Directorate | Freezing under the PMLA |
The route to release depends entirely on which of these it is.
Bank account frozen by police: your rights
Police can seize property, including a bank balance, suspected to be connected with an offence under Section 106 of the Bharatiya Nagarik Suraksha Sanhita, and must report the seizure to the magistrate. Attachment of proceeds of crime is dealt with under Section 107, which requires a magistrate's order; several High Courts have held that a freeze must follow the proper provision and be proportionate. A freeze is not a finding that you did anything wrong.
How long can police freeze your bank account?
There is no fixed period in the law, but a freeze cannot continue indefinitely without justification. Courts have lifted freezes that were never reported to the magistrate, that covered far more than the disputed amount, or where the investigation showed no link to the account holder's own conduct.
How to get the freeze lifted, step by step
- Write to your bank asking for the requesting authority, the date, the reference and the amount frozen.
- Contact the investigating officer with an explanation of the transaction and supporting documents.
- Apply to the magistrate for release of the amount under Sections 497 and 503 of the BNSS (earlier Sections 451 and 457 CrPC).
- Ask for a partial freeze limited to the disputed amount if the whole account is blocked.
- Approach the High Court where the freeze is without authority or plainly disproportionate.
Our fixed-fee frozen account help covers the first steps.
Can a bank freeze an account without notice?
A bank acting on a police request may freeze first and inform you afterwards. A freeze for incomplete KYC should normally follow notice under the bank's policy and RBI's rules. If the bank cannot point to any authority, raise a complaint with the bank and then the RBI Ombudsman.
What to do next
Do not move money around or close the account; that can look suspicious. Keep records of every transaction the police are asking about. For fraud more broadly, see fraud risk management.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
