Kerala High Court Allows Cybercrime Victim To Use Bank Account Frozen Over ₹1.16 Crore Fraud

Justice M.A. Abdul Hakhim was considering a writ petition preferred seeking a direction to the bank to unfreeze the account held in the name of the petitioner's LPG distributorship.

The petitioner's version was that she was defrauded by an establishment named “Zenith Finance” through Whatsapp offering a loan to her and she shared her account details, ID card information, etc. She added that it was this “Zenith Finance” that routed all the disputed transactions through her account. She produced the Whatsapp communications with “Zenith Finance” to substantiate her claims. The petitioner informed that she wishes to close her account.

The bank informed that there is a total lien of Rs. 1,16,32,892 on the account as per 21 requisitions received and the account balance was in the negative. The bank's statement stated that these disputed transactions occurred during a period of three day and there are no other requisitions to the account.

It further stated that the petitioner had promptly informed the bank about the fraud. Though the bank received court orders to transfer amounts to her account, it could not be complied with due to the negative account balance, it was added.

Taking note of the submissions, the Court opined:

“As per the materials available before this Court, it is clear that the disputed transactions are the result of the fraud committed on the Petitioner by the said Zenith Finance and the Petitioner is not responsible for the said transactions. In such case, the Petitioner can be permitted to operate the account, ignoring the 21 requisitions for Rs.1,16,32,892/-…If any request is made by the Petitioner to close the account, the Respondent/Bank shall process such request of the Petitioner ignoring the aforesaid 21 requisitions received by the Bank for Rs.1,16,32,892/-”

Thus, the Court disposed of the plea.

Counsel for the petitioner: Azeem Salih

Counsel for the respondents: Premchand M.