Cyber Cell Directed to Reassess Freezing Criteria; Protects Professional Duties of Advocates
In a landmark judgment, the Allahabad High Court has delivered a significant ruling on the freezing of bank accounts by the Cyber Cell of the Uttar Pradesh Police. The court made it clear that the Cyber Cell cannot indiscriminately freeze an entire bank account based on allegations of fraudulent transactions unless those funds are directly linked to suspicious activities or crimes. The judgment, delivered by Justices J.J. Munir and Arun Kumar, emphasized that freezing an Advocate's bank account without concrete evidence infringes upon the professional duties of legal practitioners, as enshrined in the Advocates Act.
The case arose when Ayush Bajpai, an advocate, found his bank account frozen by the Cyber Cell following reports of fraudulent transactions. The court highlighted two critical aspects in its decision: firstly, only the proceeds directly linked to criminal activities or suspicious transactions should be subject to freezing. Secondly, the court underscored the professional implications for advocates whose accounts are frozen without sufficient grounds, potentially hampering the administration of justice.
The court referenced previous decisions, including "Khalsa Medical Store v. Reserve Bank of India" and "Marufa Begum v. Union of India," to reinforce its position. These cases set a precedent that the Cyber Cell's authority to freeze accounts must be exercised judiciously and not extend to funds unconnected with any alleged crime.
Acknowledging the modest transactions in Bajpai's account, the court questioned the grounds for freezing the account and demanded an affidavit from the Additional Chief Secretary (Home), U.P., to clarify the procedure for handling such seizures. The court also ordered the respondents to file counter affidavits, with the matter scheduled for a fresh hearing on July 17, 2026.
The judgment serves as a reminder of the judiciary's role in safeguarding the rights of individuals against arbitrary actions by law enforcement, ensuring that professional duties, especially those of advocates, are not hindered without just cause.
Bottom line:-
Cyber Cell of Police cannot freeze an entire bank account due to fraudulent transactions unless the amount frozen directly relates to proceeds of suspicious transactions or crime. Freezing an Advocate's account without valid grounds interferes with the functioning of justice and professional duties under the Advocates Act, unless the Advocate is personally involved in criminal activities.
Statutory provision(s): Advocates Act, Cyber Crime regulations, Banking Law regarding freezing of accounts.
Ayush Bajpai v. State of U.P., (Allahabad)(DB) : Law Finder Doc id # 2933178
