MP High Court orders Axis Bank to unfreeze account, hold only disputed Rs 1,000

The Madhya Pradesh High Court at Indore on 6 November 2026 ordered Axis Bank to unfreeze a customer's account that had been put on hold over a cyber-fraud complaint, and to keep only the disputed Rs 1,000 aside in a fixed deposit. The court applied guidelines laid down by its own benches on account freezes in cyber-crime cases.

What Happened

The account holder had asked the court to lift the freeze on the account. The court held that the case was covered by two earlier rulings of the High Court, including an order of 27 July 2026 by its bench at Jabalpur that framed guidelines under a Standard Operating Procedure issued by the Ministry of Home Affairs on 10 April 2026.

Under those guidelines, as quoted in the order, police should ordinarily direct a lien or debit freeze only on the suspected amount, and freeze a whole account only in exceptional cases, with reasons in writing. The bank is the first point of contact for the customer and must upload a grievance on the government's cyber-fraud portal within seven calendar days. The investigating officer must decide it within fifteen calendar days, and the bank should carry out a release preferably within forty-eight hours.

The court directed that the Rs 1,000 be kept in a fixed deposit, to be released only on an order of the competent Judicial Magistrate within three months. If no such order comes, the account holder may withdraw it after informing the police. The bank may act on any fresh complaint about another entry, keeping the procedure in mind.

What It Means

For account holders whose accounts are frozen over a cyber-fraud complaint, the ruling shows the High Court's approach: only the disputed sum should be blocked, and the rest of the account should remain usable. The guidelines quoted in the order say a writ petition should ordinarily be filed only after 90 days under the grievance procedure, except in exceptional cases. Customers should first raise a grievance with their bank. Victims of cyber fraud can report it at https://cybercrime.gov.in or on helpline 1930.

Source: High Court judgment