Kerala High Court tells ICICI Bank to unfreeze account, limit lien to Rs 4,000

The Kerala High Court on 23 October 2026 directed ICICI Bank to let a customer operate his bank account, which the bank had frozen at the request of the police. The court limited the freeze to Rs 4,000, the amount named in the police requisition.

What Happened

The account holder, who holds an account at ICICI Bank's Manjeri branch in Malappuram district, filed a writ petition against a debit freeze, or lien, on his account. A lien means the bank blocks money in the account from being withdrawn. He told the court he was not an accused in the crime registered by the police against other persons, and was not connected with it. The police case concerns others; these are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.

The bank's counsel confirmed that the bank had received a requisition from the cyber police station in Dharashiv, Maharashtra, to freeze Rs 4,000 in the account, and had frozen the account.

The court said the issue was covered by its earlier decisions. It has consistently directed banks to let account holders operate their accounts, limiting the lien to the amount in the police requisition, so long as the bank has no suspicion that the account is used for financial cybercrime or money mule activity.

The court also noted that the Indian Cyber Crime Co-ordination Centre of the Ministry of Home Affairs has framed an SOP for 2026 on putting money on hold, its custody and restoration, and grievance redressal. Clause 10 of the SOP provides a time-bound grievance mechanism for account holders whose money is held or whose account is suspended.

The court directed that the Rs 4,000 be dealt with under that SOP. It added that the bank is free to put a further hold on the account if it receives future requisitions.

What It Means

For bank customers whose accounts are frozen over a cyber fraud complaint against someone else, the ruling follows the court's settled approach: the hold should cover only the amount the police have asked for, not the whole account, unless the bank suspects misuse. Account holders can raise a grievance over the held amount through the mechanism in Clause 10 of the Home Ministry's SOP.

Source: High Court judgment