MP High Court orders Bank of Maharashtra to unfreeze account held over cyber complaint

The Madhya Pradesh High Court at Indore has directed Bank of Maharashtra to unfreeze the account of a customer that had been frozen over a cyber crime complaint. In its order of 16 October 2026, the court said only the disputed amount of Rs 5,710 should be kept aside in a fixed deposit.

What Happened

The account holder asked the court to remove the freeze, lien or hold on the account at the bank's Indore Palasia branch and to allow normal withdrawals and transfers. The court applied two earlier decisions of the same High Court. In the first, it had directed banks to keep only the disputed amount flagged by cyber crime agencies in a fixed deposit, and to release it if police did not obtain a magistrate's order within three months.

In the second, delivered at Jabalpur on 27 July 2026, the court framed guidelines under a Standard Operating Procedure (SOP) of 10 April 2026 issued by the Ministry of Home Affairs for accounts put on hold through the national cyber crime reporting system. Those guidelines say police should, as far as practicable, freeze only the disputed amount and freeze a whole account only in exceptional cases with written reasons. They say the bank is the first point of contact for the customer and must upload a grievance on the portal within seven days, the investigating officer must decide it within fifteen days, and the bank should carry out a release, preferably within 48 hours.

Applying these, the court ordered that the Rs 5,710 be kept in a fixed deposit, released only after a magistrate's order within three months, failing which the customer may withdraw it after informing the police. The account itself is to be unfrozen.

What It Means

If your account is frozen because of a cyber crime complaint, the court's guidelines say your bank should explain the grievance process and file your grievance, rather than simply sending you to the police. Police are expected to hold only the suspected amount where that is enough. The court left the bank free to act under the SOP if any other complaint is received about the account.

Source: High Court judgment