Thalakkad Service Cooperative Bank Ltd. succeeds in securing court directive for police investigation into alleged mule accounts involved in fraudulent transactions.
In a significant legal development, the Kerala High Court has directed the police to register an FIR and conduct an investigation into a major financial cyber fraud case involving the Thalakkad Service Cooperative Bank Ltd. The court's decision comes in response to a writ petition filed by the bank after its mirror account was frozen due to fraudulent activities conducted by certain account holders.
Presiding over the case, Justice M.A. Abdul Hakhim addressed the bank's plight, which highlighted its inability to take action against the offending account holders who withdrew disputed amounts before identification. The court was presented with evidence detailing the involvement of multiple individuals using mule accounts to facilitate the cyber fraud, leading to significant financial losses for the bank.
During the hearing, the petitioner's counsel brought attention to a prior petition submitted to the local police station, identifying four individuals who opened accounts solely for executing fraudulent transactions. Despite the bank's efforts, no action had been taken by the police, prompting judicial intervention.
The court order mandates the police to register an FIR against the individuals named in the petition and to conduct a thorough investigation into the offenses, which include violations under Section 111 of the Bharatiya Nyaya Sanhita. Furthermore, the bank has been instructed to continue identifying account holders involved in such activities and report them to the police for appropriate criminal action.
The case has been adjourned for a further hearing on July 16, 2026, to review the progress of the investigation and any additional steps required to curb financial cyber fraud. This ruling underscores the judiciary's commitment to combating cybercrime and protecting financial institutions from fraudulent activities.
Bottom line:-
Financial cyber fraud - Bank's mirror account frozen due to fraudulent transactions by account holders - Bank unable to proceed against offending account holders as they withdraw disputed amounts before identification - Police directed to register FIR and conduct investigation against identified individuals.
Statutory provision(s): Section 111 of the Bharatiya Nyaya Sanhita, 2023
