MP High Court orders SBI to unfreeze account, keep only disputed sum in FD

The Madhya Pradesh High Court at Indore on 27 October 2026 directed State Bank of India to unfreeze a customer's account and keep only the disputed amount in a fixed deposit. The court applied guidelines that another bench of the same court framed on 27 July 2026 around the Ministry of Home Affairs' Standard Operating Procedure (SOP) of 10 April 2026 for bank accounts put on hold in cyber-crime cases.

What Happened

The account holder asked the court to remove the hold on the account. The court held that its earlier rulings in two such cases apply to this one. It ordered that the disputed amount named in the petition be kept in a fixed deposit and that the account be unfrozen so the customer can operate it. The deposit can be released only after a Judicial Magistrate passes orders within three months, as the court expects the police to act under the BNSS or other law; failing that, the customer may withdraw it after informing the police.

The guidelines the court applied say police should, as far as practicable, place a lien or debit freeze (a hold on a specific sum) only on the suspected amount, and freeze a whole account only in exceptional cases, for reasons recorded in writing. Under the SOP as the order describes it, the bank uploads a customer's grievance on the government portal within seven days, the investigating officer decides within 15 days, a District Grievance Redressal Officer decides a review within 15 days, and the bank carries out a release preferably within 48 hours.

What It Means

If your account is frozen after a cyber-fraud complaint, the guidelines say the bank is your first point of contact and must tell you about the grievance process instead of simply sending you to the police. Keep documents showing the source of your funds ready. If a grievance stays unresolved for 90 days with no lawful direction to continue the hold, the bank may lift it on your request after giving the police 15 days' notice. The court said a writ petition is ordinarily entertained after those 90 days, except in exceptional cases. To report cyber fraud, use https://cybercrime.gov.in or helpline 1930.

Source: High Court judgment