Bank Account Freezing

Key laws & sections

• BNSS, 2023 — Section 91 (replaces Section 102 CrPC)

  The provision invoked by IOs to freeze beneficiary accounts that received fraud proceeds. The same provision is used to seek release — by representation to the IO, then to the Magistrate.

• Prevention of Money Laundering Act, 2002 — Sections 5, 8, 17

  ED’s power to attach “proceeds of crime”. Defence runs through the Adjudicating Authority under Section 8, then the Appellate Tribunal under Section 26.

• RBI Master Direction on Customer Protection (2017, as amended)

  Limits a customer’s liability where the unauthorised debit is reported within 3 working days — and obligates the bank to provide reasoned communication on freeze grounds.

• I4C / 1930 framework & National Cyber Crime Reporting Portal

  The infrastructure layer — inter-bank holds during the “golden hour” on suspect transactions, with debit-freeze on the receiving account pending verification.

• Constitution of India — Articles 226 & 21

  Where statutory remedies are slow, futile or denied, we move the High Court — frozen accounts are increasingly recognised as a deprivation of livelihood requiring expedited release.

How we run the matter

1. 1
   Freeze diagnosis

   First, we identify the freeze type — I4C lien, Section 91 BNSS, PMLA attachment, tax lien, or bank-level STR. Each has a different remedy. Wrong-route applications waste 3–6 weeks. We pull the freeze letter, IO contact, and the underlying allegation if any.

2. 2
   I4C / Section 91 BNSS representation

   For I4C and Section 91 BNSS holds, we file a written representation to the IO with bank statements, source-of-funds documents, invoices / contracts proving the credit was legitimate. Most genuine releases happen in 7–18 days at the IO stage.

3. 3
   Magistrate / Sessions application

   Where the IO refuses or delays, we move the Magistrate under Section 91 BNSS for release. Where the Magistrate refuses, the matter moves to Sessions and then High Court under Article 226.

4. 4
   PMLA defence — Adjudicating Authority & Tribunal

   For PMLA attachments, we file response before the Adjudicating Authority within the 180-day window, contesting both the “proceeds of crime” characterisation and the genuineness of the underlying scheduled offence. Appeal to the Appellate Tribunal under Section 26 if confirmed.

5. 5
   Writ remedy — Article 226

   Where the freeze is mala fide, jurisdictionally bad, or violates RBI customer-protection norms, we move the Delhi or Allahabad High Court under Article 226 — typically with interim direction for partial release of subsistence funds within the first listing.

Why Shield for this

• Most active defreezing practice in Delhi NCR. Hundreds of bank accounts released over the past three years — including individual savings accounts, MSME current accounts, exporter accounts with FIRC documentation and crypto-P2P merchant accounts.
• Direct working relationships with bank nodal officers.We don’t route through call centres. We have written-channel contacts at the nodal-officer level for every major Indian bank and most cyber cells in Delhi NCR.
• Speed where the matter allows it. Recent USDT P2P merchant matter — current account frozen on a chained complaint from Andhra Pradesh; Section 91 BNSS representation filed with KYC of all counterparties and trade history; account released in 14 days without court intervention.
• Court remedy where representation fails. Article 226 writ in the Delhi HC for an exporter whose account had been frozen for 8 weeks on an unproven allegation — interim direction at first listing for release of ₹15 lakh towards salary and statutory dues pending final disposal.

Questions clients ask first