Sinana Farvin's plea to unfreeze bank account dismissed; court directs FIR under Bharatiya Nyaya Sanhita, 2023
The Kerala High Court, presided over by Justice M.A. Abdul Hakhim, has dismissed the writ petition filed by Sinana Farvin seeking to unfreeze her bank account amidst allegations of facilitating cyber fraud. In a significant move, the court has also directed the Tanur Police Station to register an FIR against her under Section 111 of the Bharatiya Nyaya Sanhita, 2023, which addresses organized cybercrimes.
The case arose when Farvin, a 21-year-old, petitioned for the unfreezing of her account with the Kerala Gramin Bank, arguing that the credited amount was part of legitimate transactions involving online currency trading through the Binance App. However, inconsistencies in her statements and lack of documentary evidence to support her claims led the court to question the legitimacy of the transactions.
The learned counsel for the petitioner sought to withdraw the writ petition, but the court denied the request, noting that such withdrawals have become common when petitions are unlikely to be successful. Justice Hakhim emphasized the growing menace of financial cyber fraud facilitated by mule accounts, which are often used to make illegal money trails untraceable. He underscored the court's discretion under Article 226 of the Constitution to deny relief when accounts are suspected of facilitating such frauds.
This judgment reflects the Kerala High Court's stringent stance against financial cybercrimes, reinforcing the need for thorough investigations to deter offenders and protect victims. The court's decision aligns with efforts by the Reserve Bank of India and the Indian Cyber Crime Coordination Centre to design mechanisms preventing money mules, as acknowledged by the Supreme Court in ongoing cases.
The case highlights the importance of ethical legal practices and the court's role in nurturing young lawyers, who have been drawn into filing writ petitions without fully understanding the implications or without the account holder's knowledge. Justice Hakhim reiterated the need for senior legal guidance to ensure proper conduct among junior lawyers.
As cybercrimes continue to rise, the court's decision marks a proactive approach to tackle the issue at its roots, calling for stringent measures and investigations into accounts suspected of being involved in cyber fraud. Farvin's case serves as a cautionary tale for individuals involved in cyber-related activities, emphasizing the legal consequences of operating mule accounts.
Bottom line:-
The Kerala High Court addresses the growing menace of financial cyber fraud, particularly the operation of mule accounts, and underscores its jurisdiction under Article 226 of the Constitution of India to deny reliefs in cases where accounts are suspected to facilitate cyber fraud.
Statutory provision(s): Article 226 of the Constitution of India, Section 111 of Bharatiya Nyaya Sanhita, 2023
Sinana Farvin v. Kerala Gramin Bank, (Kerala) : Law Finder Doc id # 2941398
