Madhya Pradesh High Court orders Axis Bank to unfreeze account held over cyber complaint

The Madhya Pradesh High Court at Indore has directed Axis Bank to unfreeze the bank account of an account holder that had been put on hold over a cyber crime complaint, while keeping the disputed Rs 50,000 in a fixed deposit. In its order of 3 November 2026, the court said the deposit may be released to the account holder if no Judicial Magistrate passes an order on it within three months.

What Happened

The account holder asked the court to remove a freeze on an Axis Bank account, which the petition said had been imposed without any lawful authority or order. The court held that two of its earlier rulings applied: an April 2024 order in similar petitions, and a 27 July 2026 order of its bench at Jabalpur that laid down guidelines for freezing accounts in cyber crime cases. Those guidelines build on a Standard Operating Procedure (SOP) issued by the Ministry of Home Affairs on 10 April 2026 for accounts put on hold through the national cyber crime reporting system.

The court ordered the bank to keep the disputed Rs 50,000 in a fixed deposit and to let the account holder operate the account. The deposit can be released only after an order of a competent Judicial Magistrate, which the police are expected to seek within three months under the BNSS or other law; failing that, the account holder may withdraw it after informing the police. If the bank receives a complaint about any other entry, the court said it may act in accordance with law, keeping the SOP in mind.

What It Means

For customers whose accounts are frozen over a cyber crime complaint, the ruling applies the principle that only the suspected amount should be held, not the whole account. Under the guidelines the court applied, police should, as far as practicable, ask for a lien or debit freeze only up to the disputed amount, and the bank must tell the customer about the freeze and the grievance process. As the court described the SOP, the bank uploads a grievance within seven days, the investigating officer decides it within fifteen days, a District Grievance Redressal Officer reviews it within fifteen days, and the bank carries out a release preferably within 48 hours. The bank is the first point of contact for such a grievance. Cyber fraud can be reported at https://cybercrime.gov.in or on helpline 1930.

Source: High Court judgment