'AI-Generated Petitions': Kerala High Court Flags Rise In Fraudulent De-Freezing Pleas, Orders Mandatory Impleadment Of Local SHO

Noting increasing misuse of jurisdiction by false and forged cases, the Kerala High Court recently directed the Registry to ensure impleadment of Station House Officers of the police stations having jurisdiction over the area of residence of the petitioners that prefer pleas seeking de-freezing of their accounts.

Justice M.A. Abdul Hakhim passed the direction while considering a plea seeking defreezing of a bank account.

"The Registry of this Court is directed to ensure that the SHO of the Police Station which covers the area of the Petitioner's address is made a party in all the Writ Petitions pertaining to the de-freezing of accounts, before numbering the same, until further orders."

The Court noted that hundreds of similar pleas are coming before it in which accounts have been freezed by the bank, either on suspicion of cyber fraud or on getting requisition from police authorities and the National Cyber Crime Reporting Portal (NCCRP).

It further remarked that in most of these pleas, the petitioners state that they have no involvement in the alleged crime or that the amount was credited out of a genuine business transaction without knowledge of the crime. However, details of such genuine transactions or nature of business are not stated.

The Court also flagged that these type of writ petitions are generally being preferred by very young adults and filed through young lawyers, who seemed to be relying on AI for drafting the pleadings.

"Many Writ Petitions are filed by persons who have just crossed the majority...Another relevant factor is that most of these Writ Petitions are filed through young members of the bar, without sufficient pleadings and prayers. It appears that some of the Writ Petitions are AI-generated and do not contain the basic material facts. Instances are several where the Advocates are not even able to answer or explain the queries put to them by this Court with reference to the pleadings in the Writ Petitions. I understand from the Registry of this Court that it is under this subject that the highest number of cases are filed in this Court, which necessitated the constitution of a new subject roster for the listing of cases."

It then referred to an incident in which the Court received a letter from an incarcerated person stating that a plea has been filed in his name without his knowledge or consent.

Noting these, the Court felt that the High Court jurisdiction was being misused by cyber fraudster without the knowledge of the persons in whose names pleas are being filed.

"Banks report huge numbers of transactions involving Crores of Rupees within a short span after opening the accounts, which do not match the details furnished to the Banks by the Account Holders...This Court believes that the jurisdiction of this Court is being misused by the persons regularly involved in financial cyber fraud, even without knowledge of the Petitioners shown in the Writ Petition, by producing forged documents. The above-said facts persuade this Court to exercise greater caution while dealing with Writ Petitions seeking the de-freezing of accounts."

The Court, however, pointed out that there are instances where the account holders are innocent persons who receive money without being aware that this was part of the proceeds of crime. It felt that assistance of the requisitioning authorities was necessary to identify who are the wrongdoers and innocent victims of the cyber crime.

Thus, it thought it appropriate to implead the SHOs of police stations to assist the Court in forming a prima facie opinion while considering such pleas.

In this context, the non-responsive behaviour of requisitioning authorities, particularly those outside its jurisdiction, was also marked by the Court:

"In most of the cases filed in this Court, the Requisitioning Authorities beyond the State of Kerala do not respond to the notices issued to them by this Court in the Writ Petitions...The abstinence of the Requisitioning Authorities from appearing despite notice to them makes the situation more worse and allows the escape of the culprits, resulting in loss of money to the victims of financial cyber fraud."

Case No: WP(C) No. 43123 of 2025

Case Title: Blue Star Aluminium & Door House v. Federal Bank and Anr.

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