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DR SAJEER , v. RESERVE BANK OF INDIA
Factual and Procedural Background
The writ petitions arise from incidents where various petitioners' bank accounts were frozen following allegations of cyber financial crimes connected to Unified Payment Interface (UPI) transactions. The National Cyber Crimes Portal (NCCP), established by the Ministry of Home Affairs under the Indian Cyber Crime Co-ordination Centre, facilitates victims of cyber crimes to register complaints, triggering investigations by police authorities. In these cases, it appears that money allegedly involved in cyber financial crimes was transferred to the petitioners' accounts, leading police authorities from different states in India to issue advisories to freeze those accounts. The petitioners, mostly small businessmen and retailers, claim they are unaware of the reasons for freezing and suffer significant business and personal losses as a result. These writ petitions challenge the freezing of their accounts and seek judicial intervention to safeguard their interests while investigations continue.
Legal Issues Presented
- Whether it is appropriate for police authorities to freeze the entirety of a bank account when only a specific amount is alleged to be involved in a cyber financial crime?
- What safeguards should be implemented to balance the investigation of cyber crimes with the protection of innocent individuals’ rights and business interests?
- What is the role and extent of the Ministry of Home Affairs and the NCCP in the investigation and freezing of accounts linked to cyber crimes?
Arguments of the Parties
Petitioners' Arguments
- The petitioners contend they are innocent law-abiding citizens caught in the crossfire of cyber crime investigations without knowledge of the alleged crimes.
- They assert that their entire bank accounts have been frozen without clear reasons, causing severe prejudice and loss to their businesses and daily lives.
- The petitioners highlight that many of the transactions were bona fide payments for legitimate business activities, such as retail sales and restaurant bills.
- They emphasize the erosion of trust in the UPI system due to indiscriminate freezing of accounts, urging the Court to introduce safeguards.
Respondents' Arguments
- The learned Central Government Counsel explained that the NCCP was established with the purpose of providing relief to cyber crime victims and ensuring prompt investigation.
- He stated that the orders to freeze accounts are issued by competent police authorities in various states as necessary steps to track and investigate proceeds of cyber crimes.
- The Ministry of Home Affairs does not have a further role beyond facilitating the NCCP, and it is the police authorities’ responsibility to inform the Court about the status of investigations and the necessity of continuing the freeze.
- Regarding the freezing of entire accounts, the counsel had no instructions and left the matter to the Court’s discretion.
Table of Precedents Cited
No precedents were cited in the provided opinion.
Court's Reasoning and Analysis
The Court acknowledged the significance of the UPI system as a transformative and internationally recognized financial platform in India, noting its widespread adoption and inherent security features. However, the Court also recognized the vulnerability of the system to cyber crimes, which have resulted in complex schemes involving multiple accounts to launder ill-gotten wealth.
The Court observed that the petitioners, despite being innocent and law-abiding citizens, have suffered due to the freezing of their entire bank accounts based on allegations linked to cyber crimes involving UPI transactions. The Court noted that investigations are ongoing and that it is premature to interfere substantively at this stage.
Nevertheless, the Court expressed concern over the indiscriminate freezing of entire accounts when police requisitions specifically mention only certain amounts suspected as proceeds of crime. The Court reasoned that unless the investigation reveals complicity or knowledge of the petitioners regarding the crime, they cannot be treated as accused persons.
The Court emphasized the need for safeguards to maintain public trust in the UPI system and to prevent undue hardship to innocent account holders. It directed that the freezing of accounts should be limited strictly to the amounts specified in police orders, allowing petitioners to transact freely with the remaining balance.
The Court further directed police authorities to communicate within eight months whether the freeze should continue and for what duration, and banks must act accordingly based on such communications. In the absence of such information, petitioners are free to approach the Court again, with all contentions preserved for future consideration.
Holding and Implications
The Court ordered that the freeze on the petitioners' bank accounts be confined only to the specific amounts mentioned in police requisitions, allowing the petitioners to operate the remainder of their accounts without restriction.
The police authorities are directed to inform the banks within eight months about the necessity and duration of continued freezing. Banks must comply strictly with such directions. If no information is received, petitioners may approach the Court afresh, with their rights and contentions fully reserved.
This decision directly alleviates the hardship faced by the petitioners by preventing the blanket freezing of accounts and seeks to restore confidence in the UPI payment system. The Court did not set any new legal precedent but provided procedural safeguards balancing investigative needs and innocent individuals' rights.
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 12960 OF 2023
PETITIONER:
DR SAJEER ,
AGED 32 YEARS
SAJEER MANZIL PATHIYARAKKARA PALAYAD KOZHIKODE, PIN
- 673105
BY ADV K.REEHA KHADER
RESPONDENT:
1 RESERVE BANK OF INDIA
REPRESENTED BY ITS GOVERNOR OF RBI NO. 6507, BAKERY
JUNCTION ROAD NANDAVANAM, PALAYAM
THIRUVANANTHAPURAM, KERALA-, PIN - 695033
2 THE AXIS BANK REPRESENTED BY ITS AUTHORIZED OFFICER
VADAKARA BRANCH, VADAKARA KOZHIKKODE-, PIN - 673101
BY ADVS.
Saju N. A. G.LEKHA(K/1507/2000) UMA.G.KRISHNAN(K/973/2004) P.J.FLONY(K/313/2007)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION
ON 25.09.2023, ALONG WITH WP(C).29319/2023, 30475/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
1
2
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 29319 OF 2023
PETITIONER:
FARASUL NISAN. N
AGED 32 YEARS
S/O. ABDUL KAREEM.N, NAMBUTHODIKA HOUSE,
KODIYATHUR (P.O), MUKKAM VIA, KOZHIKODE
DISTRICT, PIN - 673602
BY ADVS.
ABDUL SHUKOOR MUNDAMBRA
P.C.MUHAMMED NOUSHIQ
RESPONDENTS:
1 THE BANK MANAGER,
ICICI BANK LTD, BP BUILDING, MAIN ROAD, MUKKAM
KOZHIKODE, KERALA, PIN - 673602
2 THE DGP,
STATE CYBER CRIME CELL, 7TH FLOOR,BLOCK-2, KARMYOGI BHAVAN, SECTOR-10 A, GANDHI NAGAR 382010 GUJARATH EMAIL: HELPLINE-CYBER- CID@GUJARAT.GOV.IN, PIN - 382010
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
3
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 30475 OF 2023
PETITIONER:
ABOOJASIN
AGED 33 YEARS
S/O. SUBAIR T., THEKKINCHI HOUSE, MADAVOOR P.O., KOZHIKODE DISTRICT, PIN - 673585
BY ADVS.
K.RAKESH
RAJESH BABU CHELAT
RESPONDENTS:
1 THE UNION OF INDIA
REPRESENTED BY ITS SECRETARY, MINISTRY OF HOME
AFFAIRS, NEW DELHI, PIN - 110000
2 THE RESERVE BANK OF INDIA
REPRESENTED BY ITS GOVERNOR, HEAD OFFICE,
MUMBAI, MAHARASTRA, PIN - 400029
3 THE STATE POLICE CHIEF
POLICE HEAD QUARTERS, VAZHUTHACAUD,
THIRUVANANTHAPURAM, PIN - 695014
4 THE STATION HOUSE OFFICER
DIGGI TONK POLICE STATION, RAJASTAN, PIN -
304504
5 THE STATION HOUSE OFFICER
CYBER CRIME POLICE STATION, RACHAKONDA,
TELUNGANA, PIN - 508252
6 THE STATION HOUSE OFFICER
CYBER CRIME POLICE STATION, 3RD FLOOR, NEW
PANIGATE POLICE STATION BUILDING, OPPOSITE
PANIGATE WATER TANK, AJWA ROAD, VADODHARA CITY,
GUJARAT, PIN - 390001
7 THE STATION HOUSE OFFICER
TULINJ POLICE STATION, MAHARASHTRA, PIN -
4
401209
8 ICICI BANK
THAMARASSERI BRANCH, THAMARASSERI P.O.,
KOZHIKODE DISTRICT, REPRESENTED BY ITS BRANCH
MANAGER, PIN - 673574
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
5
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 30895 OF 2023
PETITIONER:
MANU RASHEED
AGED 23 YEARS
S/O ABDUL SALEEM T.P, THALAPPADIKKAL HOUSE
PALAKKUTTY, MANIPURAM P.O KODUVALLY, KOZHIKODE,
PIN - 673572
BY ADVS.
P.MOHAMED SABAH
LIBIN STANLEY
SAIPOOJA
FAIZEL K.
SADIK ISMAYIL
R.GAYATHRI
M.MAHIN HAMZA
ALWIN JOSEPH
RESPONDENT:
THE FEDERAL BANK
KODUVALLY BRANCH, IRIS TOWER KODUVALLY P.O,
KOZHIKODE REPRESENTED BY ITS MANAGER, PIN -
673572
BY ADVS.
Mohan Jacob George P.V.PARVATHY (P-41)(K/000036/1991) REENA THOMAS(R-364)
NIGI GEORGE(K/1169/2012) ANANTHU V.LAL(K/001233/2022)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
6
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 31060 OF 2023
PETITIONERS:
1 ABDUL KALAM M
AGED 50 YEARS
S/O. ABOOBACKER HAJI, MANNARIKKAL HOUSE, TC ROAD, TIRURANGADI TALUK, MALAPPURAM, PIN -
676306
2 HASHEER M
AGED 24 YEARS
S/O. KINHIMUHAMMED, MALANGADAN HOUSE,
SHAPPINKUNNU, KARAKKUNNU P.O., MALAPPURAM
DISTRICT, PIN - 676123
3 FOUSIYA
AGED 40 YEARS
W/O. USMAN, KARANATHODUVIL HOUSE, MANKADA, KOOTTIL P.O. MALAPPURAM DISTRICT, PIN - 679324
4 USMAN K.S.
AGED 60 YEARS
S/O. SAIDALI K., KARANATHODUVIL HOUSE, MANKADA, KOOTTIL P.O. MALAPPURAM DISTRICT, PIN - 679324
5 SHOUKATHALI V
AGED 53 YEARS
S/O. MUHAMMED V., VATTAMANNATHODI HOUSE,
MANKADA, KOOTTIL P.O. MALAPPURAM DISTRICT, PIN
- 679324
6 MUHAMMED SHAFI
AGED 27 YEARS
S/O. ABDUL HAKKEEM, KUNNUMMAL HOUSE, KALIKAVU P.O., MALAPPURAM DISTRICT, PIN - 676525
7 SHAKEEB C
AGED 27 YEARS
S/O. KUNHIMUHAMMED, CHUKKAN HOUSE, MELANGADI P.O., KONDOTTY, MALAPPURAM DISTRICT, PIN -
673638
8 MUHAMMED SHAFEEQUE
7
AGED 24 YEARS
S/O. KUNHIMUHAMMED, ERANIYIL HOUSE, MATTATHUR P.O., MALAPPURAM DISTRICT, PIN - 676528
9 JAMEELA
AGED 55 YEARS
W/O. SAIDALAVI, PALLIPPURAM HOUSE, VENGARA P.O., PARAMBIL PADI, MALAPPURAM DISTRICT, PIN -
676304
10 ILLYAS MANGADAN
AGED 32 YEARS
MANGADAN HOUSE, VENGARA P.O., PARAMBIL PADI,
MALAPPUAM DISTRICT, PIN - 676304
11 JOSHY P.J.
AGED 51 YEARS
S/O. JOSE P.T., PERUMBULLY HOUSE, THALIYAKANOM, MADIYAKANOM, THRISSUR DISTRICT, PIN - 680712
12 M/S KAZZE FINSERVE PVT. LTD.
2ND FLOOR, CM MATHEW BROTHERS ARCADE,
ERANHIPALAM, NEAR WESTWAY HOTEL, KOZHIKODE,
REPRESENTED BY THE MANAGING DIRECTOR, PRABHUL
ISSAC, KUNNUMPURATH HOUSE, MANKUVA P.O.,
CHINNAR, IDUKKI DISTRICT, PIN - 673005
BY ADVS.
K.RAKESH
AMEEN HASSAN K.
RESPONDENTS:
1 THE UNION OF INDIA
REPRESENTED BY ITS SECRETARY, MINISTRY OF HOME
AFFAIRS, NEW DELHI, PIN - 110001
2 THE RESERVE BANK OF INDIA
REPRESENTED BY ITS GOVERNOR, HEAD OFFICE,
MUMBAI, MAHARASTRA, PIN - 400029
3 THE STATE POLICE CHIEF
POLICE HEAD QUARTERS, VAZHUTHACAUD,
THIRUVANANTHAPURAM, PIN - 695014
4 THE SOUTH INDIAN BANK LTD.
CHEMMAD BRANCH, TIRURANGADI P.O., MALAPPURAM
DISTRICT, REPRESENTED BY ITS BRANCH MANAGER,
PIN - 676306
5 THE SOUTH INDIAN BANK LTD.
MANJERI BRANCH, MANJERI P.O., MALAPPURAM
DISTRICT, REPRESENTED BY ITS BRANCH MANAGER,
8
PIN - 676121
6 STATE BANK OF INDIA
MANKADA BRANCH, MANKADA P.O., MALAPPURAM
DISTRICT, PIN - 679 324 REPRESENTED BY ITS BRANCH MANAGER, PIN - 679324
7 THE FEDERAL BANK
MANKADA BRANCH, MANKADA P.O., MALAPPURAM
DISTRICT, PIN - 679 324 REPRESENTED BY ITS BRANCH MANAGER, PIN - 679324
8 THE SOUTH INDIAN BANK LTD.
KALIKAVU BRANCH, KALIKAVU P.O., MALAPPURAM
DISTRICT, REPRESENTED BY ITS BRANCH MANAGER,
PIN - 676525
9 THE BANK OF BARODA
KONDOTTY BRANCH, KONDOTTY P.O., MALAPPURAM
DISTRICT, REPRESENTED BY ITS BRANCH MANAGER,
PIN - 673638
10 THE HDFC BANK
KOTTAKKAL BRANCH, KOTTAKKAL P.O., MALAPPURAM
DISTRICT, REPRESENTED BY ITS BRANCH MANAGER,
PIN - 676503
11 THE SOUTH INDIAN BANK LTD.
VENGARA BRANCH, VENGARA P.O., MALAPPURAM
DISTRICT, PIN -676 304 REPRESENTED BY ITS BRANCH MANAGER, PIN - 676304
12 THE FEDERAL BANK
IRINGALAKUDA BRANCH, IRINGALAKUDA P.O.,
THRISSUR DISTRICT, REPRESENTED BY ITS BRANCH
MANAGER, PIN - 680121
13 THE STATION HOUSE OFFICER
CYBER CRIME POLICE STATION, VADODHARA, GUJARAT,
PIN - 390001
14 THE POLICE INSPECTOR
CEN POLICE STATION, NORTH EAST DIVISION,
BENGALURU CITY, KARNATAKA, PIN - 650002
BY ADV BEPIN VIJAYAN
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
9
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 28908 OF 2023
PETITIONER:
JALALUDHEEN V K
AGED 38 YEARS
KOYASSANVALIYA KIZHAKEYIL HOUSE THALAYAD P O
KOZHIKODE, PIN - 673574
BY ADVS.
SADCHITH.P.KURUP
VINOD JABAR
C.P.ANIL RAJ
SIVA SURESH
RESHMA RAJ
RESPONDENTS:
1 DBS BANK
GROUND FLOOR, EXPRESS TOWERS, NARIMAN POINT
MUMBAI- MAHARASHTRA REP. BY ITS MANAGER, PIN -
400021
2 STATION HOUSE OFFICER
CITY POLICE STATION VALSAD, GUJARAT, PIN -
396001
3 NATIONAL CYBER CRIME REPORTING PORTAL
(MHA PORTAL), NATIONAL HIGHWAY -8 MAHIPALPUR, NEW DELHI REP BY ITS DIRECTOR, PIN - 110037
BY ADV MANU S. DSG OF INDIA
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
10
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 31354 OF 2023
PETITIONER:
TINU SIBY ROY
AGED 35 YEARS
W/O NIYAS, D/O ROY GEORGE, PERMANENTLY RESIDING
AT KAVICHERIL HOUSE, AVOLY P.O., MUVATTUPUZHA,
PIN - 688670
BY ADVS.
K.V.SABU
NIKHIL K SABU
MINU SIBY ROY
RESPONDENTS:
1 MANAGER
PORUR SERVICE CO-OPERATIVE BANK LTD NO.M.357, CHERUKODE, MALAPPURAM, PIN - 679328
2 BRANCH MANAGER
SOUTH INDIAN BANK LTD, P.B. NO.3, ERAVIPEROOR
JUNCTION, ERAVIPEROOR P.O., PATHANAMTHITTA, PIN
- 689542
3 GENERAL MANAGER
SOUTH INDIAN BANK LTD, HEAD OFFICE, THRISSUR,
PIN - 680001
4 MANAGER
ICICI BANK LTD, NILAMBUR BRANCH MALAPPURAM, PIN
- 679329
5 SUB INSPECTOR OF POLICE
CYBER CRIME POLICE STATION, BUNGALOW NO.15,
NEAR IPS MESS, DAFNALA, SHAHIBAUG, AHMEDABAD,
GUJARAT, PIN - 380004
6 STATE POLICE CHIEF
AHMEDABAD, GUJARAT, PIN - 380004
11
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
12
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 18838 OF 2023
PETITIONER:
M/S PEEDIAKKAL AGENCIES,
AGED 45 YEARS
A PROPRIETARY CONCERN HAVING OFFICE AT VATTOLY
TOWERS, DOOR.NO. 65/4155 4A, SRM ROAD, KOCHI-
REPRESENTED BY ITS PROPRIETOR FASAL RAHMAN,AGED
45 YEARS, S/O MUHAMMADALI., PIN - 682018
BY ADVS.
M.A.MOHAMMED SIRAJ
S.SREEKUMAR (SR.)
RESPONDENTS:
1 THE STATE OF KERALA
REPRESENTED BY HOME SECRETARY GOVERNMENT
SECRETARIAT THIRUVANANTHAPURAM.-, PIN - 695001
2 THE STATION HOUSE OFFICER,
CYBER CRIME POLICE STATION, HYDERABAD CITY ,
TELANGANA,, PIN - 500001
3 THE BRANCH MANAGER,
UNION BANK OF INDIA, MARINE DRIVE BRANCH,
ERNAKULAM -, PIN - 682031
BY ADVS.
ADVOCATE GENERAL OFFICE KERALA
DIRECTOR GENERAL OF PROSECUTION(AG-10)
P.NARAYANAN, SENIOR G.P. AND ADDL.PUBLIC
PROSECUTOR()
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
13
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 18459 OF 2023
PETITIONER:
M/S PEEDIAKKAL AGENCIES,
AGED 45 YEARS
A PROPRIETARY CONCERN HAVING OFFICE AT VATTOLY
TOWERS, DOOR.NO. 65/4155 4A, SRM ROAD, KOCHI-
REPRESENTED BY ITS PROPRIETOR FASAL RAHMAN,AGED
45 YEARS, S/O MUHAMMADALI., PIN - 682018
BY ADVS.
M.A.MOHAMMED SIRAJ
S.SREEKUMAR (SR.)
RESPONDENTS:
1 THE STATE OF KERALA
REPRESENTED BY HOME SECRETARY GOVERNMENT
SECRETARIAT THIRUVANANTHAPURAM.-, PIN - 695001
2 CYBER CRIME POLICE STATION,
DEPUTY COMMISSIONER OF POLICE ,RACHAKONDA
POLICE COMMISSIONERATE,LB NAGAR, HYDERABAD-, PIN - 500074
3 THE BRANCH MANAGER,
STATE BANK OF INDIA, PANAMPILLY NAGAR BRANCH,
SBT AVENUE PANAMPILLY NAGAR P.O ERNAKULAM -, PIN - 682036
BY ADVS.
V.JOHN MANI
GILBERT GEORGE CORREYA
VARGHESE SABU(K/778/2019) SETHULAKSHMI K.K.(K/623/2017) MANJU ELSA ISAC(K/001668/2018) SHAMEENA K.Y.(K/959/2023) JIBIN P.GEORGE(K/001273/2022)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
14
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 17354 OF 2023
PETITIONER:
M/S PEEDIAKKAL AGENCIES,
A PROPRIETARY CONCERN HAVING OFFICE AT VATTOLY
TOWERS, DOOR.NO. 65/4155 4A, SRM ROAD, KOCHI-
REPRESENTED BY ITS PROPRIETOR FASAL RAHMAN,AGED
45 YEARS, S/O MUHAMMADALI., PIN - 682018
BY ADVS.
M.A.MOHAMMED SIRAJ
S.SREEKUMAR (SR.)
RESPONDENTS:
1 THE STATE OF KERALA
REPRESENTED BY HOME SECRETARY GOVERNMENT
SECRETARIAT THIRUVANANTHAPURAM.-, PIN - 695001
2 THE SUB INSPECTOR OF POLICE,
MANDYA RURAL POLICE STATION, MANDYA DISTRICT
KARNATAKA-, PIN - 571401
3 CYBER CRIME POLICE STATION,
RAJKOT CITY, GUJARAT-, PIN - 360001
4 BRANCH MANAGER,
ICICI BANK, KALOOR BRANCH KALOOR -, PIN -
682017
5 BRANCH MANAGER,
ICICI BANK, MANGALAPURAM BRANCH KARNATAKA -, PIN - 575002
6 BRANCH MANAGER,
ICICI BANK,EDAPPALLY BRANCH EDAPALLY-, PIN -
682024
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
15
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 16169 OF 2023
PETITIONER:
M/S PEEDIAKKAL AGENCIES,
AGED 45 YEARS
A PROPRIETARY CONCERN HAVING OFFICE AT VATTOLY
TOWERS, DOOR.NO. 65/4155 4A, SRM ROAD, KOCHI-
REPRESENTED BY ITS PROPRIETOR FASAL RAHMAN,AGED
45 YEARS, S/O MUHAMMADALI., PIN - 682018
BY ADV M.A.MOHAMMED SIRAJ
RESPONDENTS:
1 THE STATE OF KERALA
REPRESENTED BY HOME SECRETARY GOVERNMENT
SECRETARIAT THIRUVANANTHAPURAM.-, PIN - 695001
2 THE SUB INSPECTOR OF POLICE,
MANDYA RURAL POLICE STATION, MANDYA DISTRICT
KARNATAKA, PIN - 571401
3 STATION HOUSE OFFICER,
CYBER CRIME POLICE STATION, PANIPAT (HR), INDIA
HARYANA, PIN - 132103
4 BRANCH MANAGER,
FEDERAL BANK , ERNAKULAM/KALOOR BRANCH KALOOR - KADAVNTHRA ROAD, PIN - 682017
5 THEJASWI KH
HUCHE GOWDA BANNUR ROAD DAR MANDYA NEAR RURAL
POLICE STATION MANDYA DISTRICT KARNATAKA, PIN -
571401
BY ADVS.
Mohan Jacob George P.V.PARVATHY (P-41)(K/000036/1991) REENA THOMAS(R-364)
NIGI GEORGE(K/1169/2012)
16
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
17
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 14932 OF 2023
PETITIONER:
M/S PEEDIAKKAL AGENCIES,
AGED 45 YEARS
A PROPRIETARY CONCERN HAVING OFFICE AT VATTOLY
TOWERS, DOOR.NO. 65/4155 4A, SRM ROAD, KOCHI- REPRESENTED BY ITS PROPRIETOR FASAL RAHMAN S/O MUHAMMADALI., PIN - 682018
BY ADV M.A.MOHAMMED SIRAJ
RESPONDENTS:
1 THE STATE OF KERALA
REPRESENTED BY HOME SECRETARY GOVERNMENT
SECRETARIAT THIRUVANANTHAPURAM.-, PIN - 695001
2 THE POLICE INSPECTOR,
GANDHIDHAMA DIV KACHCHH EAST( GANDHIDHAM),
GUJARAT-, PIN - 370201
3 THE BRANCH MANAGER,
KOTAK MAHINDRA BANK, ALUVA BRANCH-ERNAKULAM, PIN - 683101
BY ADVS.
R.S.KALKURA
M.S.KALESH(K-275) HARISH GOPINATH(K/232/1999) SILPA S.(K/951/2017)
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
18
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 29455 OF 2023
PETITIONER:
PRAVEEN NANGALERY
AGED 39 YEARS
S/O KANARI M, NIRMALAM PUTHANPARAMBATH HOUSE,
PATHIRIYAD, SANKARANELLUR P.O., KUTHUPARAMBA
VAZHI, KANNUR, PIN - 670643
BY ADVS.
ANAND KALYANAKRISHNAN
C.DHEERAJ RAJAN
RESPONDENTS:
1 UNION OF INDIA
REPRESENTED BY ITS SECRETARY, MINISTRY OF HOME
AFFAIRS, NEW DELHI, PIN - 110001
2 NATIONAL CYBER CRIME REPORTING PORTAL
REPRESENTED BY ITS DIRECTOR, NATIONAL HIGHWAY - 8, MAHIPALPUR, NEW DELHI, PIN - 110037
3 STATE POLICE CHIEF
POLICE HEADQUARTERS, VAZHUTHACAUD,
THIRUVANANTHAPURAM, PIN - 695014
4 INSPECTOR OF POLICE
GHATLODIA POLICE STATION, 3G4V+X9M, NEAR PETROL
PUMP, PARAS NAGAR, MEMNAGAR, AHMEDABAD,
GUJARAT, PIN - 380061
5 STATION HOUSE OFFICER
CYBER POLICE STATION, ROHINI, SECTOR 17,
ROHINI, NEW DELHI, PIN - 110089
6 STATE BANK OF INDIA
KUTHUPARAMBA BRANCH, RHQ9+CCV, THOKKILANGADI, THALASSERY - COORG HIGHWAY, KUTHUPARAMBA, KANNUR - 670 643 REPRESENTED BY ITS MANAGER,
19
PIN - 670643
BY ADVS.
Girish Kumar V
GILBERT GEORGE CORREYA
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
20
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 30226 OF 2023
PETITIONER:
VIMAL KRISHNAN K
AGED 37 YEARS
S/O.VISWANATHAN NAIR, AISWARYA HOUSE,
SYAMKANDAM, PULIKKAL PO9ST, MALAPPURAM
DISTRICT, KERALA, PIN - 673637
BY ADV SAJI SANKARAN NAIR
RESPONDENTS:
1 ICICI BANK LTD
VYTILA BRANCH, REPRESENTED BY ITS BRANCH
MANAGER, PAREKKATTIL TOWERS,OPPOSITE WELCARE
HOSPITAL, S.A.ROAD, VYTTILA KOCHI., PIN -
682019
2 ZONAL MANAGER ICICI BANK LTD
2ND FLOOR, ARANGATH PULLEPADY, NEAR PADMA
JUNCTION, KOCHI, PIN - 682035
3 THE RESERVE BANK OF INDIA
REGIONAL MANAGER, X7RQ+VHG, BANARJI ROAD KALOOR, KOCHI, PIN - 682018
4 RAHUL RAJ
AGED 35 YEARS
S/O. RAJASEKAHARAN, RAJEEVAM, KALIKAVU POST,
NEAR BHAGAVATHY TEMPLE, MALAPPURAM DISTRICT.,
PIN - 676525
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
21
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 30433 OF 2023
PETITIONER:
RAHEEM. P
AGED 42 YEARS
S/O. AHAMMED, PANAMBULAKKAL HOUSE, AMBARA, KOTTAKKAL, MALAPPURAM DISTRICT., PIN - 676503
BY ADVS.
R.RANJITH (MANJERI)
A.P.NIDHIN KUMAR
RESPONDENTS:
1 THE FEDERAL BANK LTD
KOTTAKKAL BRANCH, VEE PEE TOWERS, MAIN ROAD,
KOTTAKKAL, MALAPPURAM DISTRICT, REPRESENTED BY
ITS BRANCH MANAGER (BRANCH HEAD)., PIN - 676503
2 THE CYBER CELL
NOIDA, UTTAR PRADESH POLICE, OFFICE OF THE
DEPUTY COMMISSIONER OF POLICE., PIN - 201301
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
22
IN THE HIGH COURT OF KERALA AT ERNAKULAM
PRESENT
THE HONOURABLE MR. JUSTICE DEVAN RAMACHANDRAN
MONDAY, THE 25TH DAY OF SEPTEMBER 2023 / 3RD ASWINA, 1945
WP(C) NO. 28797 OF 2023
PETITIONER:
M/S. DEENAR ENTERPRISES
AGED 51 YEARS
KMC, 1 THALANGARA, XVII/132C/THALANGARA P.O,
KASARAGOD REPRESENTED BY ITS SOLE PROPRIETOR,
USMAN.M, AGED 51 YEARS, S/O MAHAMOOD, KAZHILANE, THALANGARA, KASARAGOD, PIN - 671121
BY ADVS.
S.K.ADHITHYAN
ALTHAF NABEEL
ASHIQ MUHAMMAD S.
RESPONDENTS:
1 UNION OF INDIA
REPRESENTED BY ITS SECRETARY, MINISTRY OF HOME
AFFAIRS, NEW DELHI, PIN - 110001
2 RESERVE BANK OF INDIA
REPRESENTED BY ITS GOVERNOR, HEAD OFFICE,
MUMBAI, MAHARASHTRA, PIN - 400029
3 NATIONAL CYBER CRIME REPORTING PORTAL,
REPRESENTED BY ITS DIRECTOR, NATIONAL HIGHWAY - 8, MAHIPALPUR, NEW DELHI, PIN - 110037
4 STATE POLICE CHIEF,
STATE POLICE CHIEF, POLICE HEAD QUARTERS,
VAZHUTHACAUD, THIRUVANANTHAPURAM, PIN - 695014
5 DIRECTOR GENERAL OF POLICE,
LAKDIKAPUL RD, OPPOSITE RAVINDRA BHARATHI, RED
HILLS, LAKDIKAPUL, HYDERABAD, TELANGANA, PIN -
500004
6 THE STATION HOUSE OFFICER
MUNUGODE POLICE STATION TELANGANA, PIN - 508244
7 THE STATION HOUSE OFFICER,
TALLAGURJALA POLICE STATION DELLAMPALLI,
23
ADILABAD DISTRICT, TELENGANA, PIN - 504251
8 DIRECTOR GENERAL OF POLICE
POLICE HEADQUARTERS, 9TH FLOOR, TOWER 2,
GOMTINAGAR EXT. SHAHID PATH, LUCKNOW, PIN -
226002
9 STATION HOUSE OFFICER,
CYBER CRIME CELL, OFFICE OF THE DEPUTY
COMMISSIONER OF POLICE, SECTOR-6, NOIDA,
GAUTHAMBUDDHA NAGAR DISTRICT, UTTAR PRADESH,
PIN - 201301
10 DIRECTOR GENERAL OF POLICE,
FIRST FLOOR, POLICE BHAVAN, SECTOR 18,
GANDHINAGAR, GUJARAT, PIN - 382021
11 STATION HOUSE OFFICER,
OFFICE OF THE VEJALPUR POLICE STATION ,
VEJALPUR, GUJARATH, PIN - 380009
12 STATION HOUSE OFFICER,
CYBER CRIME POLICE STATION, VADODARA CITY, 3RD
FLOOR, ABOVE PANIGATE POLICE STATION, OPP.
WATER TANK, PANIGATE., VADODARA, PIN - 390006
13 ICICI BANK OF INDIA,
REPRESENTED BY ITS MANAGER, CITY CENTRE BRANCH,
BANK ROAD, KASARAGOD DISTRICT, PIN - 671121
BY ADV MANU S. DSG OF INDIA
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR
ADMISSION ON 25.09.2023, ALONG WITH WP(C).12960/2023 AND
CONNECTED CASES, THE COURT ON THE SAME DAY DELIVERED THE
FOLLOWING:
24
'C.R'
JUDGMENT
[WP(C) Nos.12960/2023, 29319/2023, 30475/2023, 30895/2023, 31060/2023, 29455/2023, 14932/2023, 16169/2023, 17354/2023, 18459/2023, 18838/2023, 28908/2023,31354/2023,30226/2023,30433/2023 & 28797/2023]
The 'Unified Payment Interface (UPI), has transformed the financial spectrum in India; and in particular, the manner in which people transact money. Its easy-to-use interface and ingrained security features, has made "UPI" the preferred mode of payment for millions of Indians, making it the fastest growing payments systems in the world.
2. However, like in many good initiatives, there are chinks in the armour - in a manner of speaking; Charlatans commit Cyber Crimes and create byzantine maze of accounts, through which ill-gotten wealth is moved and parked.
3. The National Cyber Crimes Portal (NCCP) has been set up by the Ministry of Home Affairs, under the aegis of the Indian Cyber Crime Co-ordination Centre, to enable any person - who becomes a victim of Cyber Crime, to register on the said portal; which then triggers an appropriate response and criminal investigation.
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4. Unfortunately, a situation as afore has thrown the petitioners in these cases in the cross hairs of the Police and their Banks, because it appears to be alleged that some one, who had indulged in a cyber financial crime in another part of India, had transferred money to their account; consequent to which, the competent Investigating and Police Authorities issued advisory to their Banks to freeze their accounts.
5. The petitioners assert that they have literally caught between the "Devil and the Deep Sea" because, for one, they do not know why their accounts have been frozen; and for the second, they are now facing incalculable loss in their business and unspeakable prejudice, with their accounts being rendered unavailable to them to operate, all because some unknown person, sitting in a far off and remote place in India or even abroad, is alleged to have made "UPI"
transactions in their accounts as part of small trading or payment against services bonafide rendered, including in restaurants and retail shops.
6. The petitioners assert that, on account of the orders of freezing of their accounts in this fashion, the trust of the business community in the 'UPI' system has been severely
26
shaken; and therefore, pray that this Court come to their aid, issuing appropriate orders and safeguards.
7. In response, Sri.Dayasindhu Sreehari - learned Central Government Counsel, affirmed that the Ministry of Home Affairs had initiated and set up the 'NCCP' with the laudable intent to protect and offer succour to victims of Cyber Crimes; and explained that when complaints are registered on it, it immediately generates an appropriate response from the jurisdictional investigating and Police Authorities. He predicated that the orders impugned in these cases - issued by various Police Authorities in other States in India - are necessary and imperative steps initiated by such Agencies to track the sums involved in Cyber Crimes, routed by the accused through different accounts. He argued that, therefore, the Ministry of Home Affairs do not have any further role to play in this matter; and that this for the Police Authorities concerned to inform this Court whether the investigations are still continuing and if the orders freezing the accounts of the petitioners, require to be maintained.
8. On hearing Sri.Dayasindhu Sreehari as afore, I pointedly asked him why the account of an individual should be frozen fully, even when the requisition for the same - made
27
by the Police Authorities concerned - refer to the alleged proceeds of crime involved. He submitted that he has no instruction in this regard, because such orders are issued by the Police Authorities; and thus left it to this Court to take appropriate decision.
9. The afore so recorded, I am fully cognizant that this is not the stage for this Court to intervene in the manner, as has been pleaded by the petitioners because, the investigation into the various Cyber Crimes - which are the genesis of the orders impugned in these cases - are still underway. However, the petitioners, who, prima facie, are all ordinary law abiding citizens, have little capacity to track or follow the cases, which has lead them to the present situation; or even to obtain its present status because, the requisitions to the Various Banks have been made by the Police Stations in other States - some very far off. They assert that their entire accounts are frozen, thus incapacitating their businesses and affecting their daily lives, solely because a person or persons - with whom they had no previous acquaintance - happened to transfer money from his/their account to theirs, using the 'UPI' platform, as part of bona fide business transaction - often against payment of
28
small bills qua retail sale, restaurant food sale etc. They assert that most of them are retailers and small businessmen, who trusted the 'UPI' regime of fiscal transactions for its convenience and safety; but has now been rudely shaken.
10. I am, therefore, of the firm view that, certain specific safeguards will have to be now infused into process, lest the people loose their faith in the 'UPI' system itself, especially when it is spear headed and recognised internationally as a vanguard initiative of India.
11. In the afore perspective, when the requisitions in these cases - by various Police Authorities in several States of India - mention the exact amount suspected to have been credited to the accounts of the petitioners herein, one fails to fathom why their bank accounts in full, should remain frozen. This is more so because, even when the sums in question may have found credit in the accounts of the petitioners, unless the investigation eventually reveals that they were complicit in the Cyber Crime, or had received the same being aware of it, they could never be construed to be accused.
12. In fact, should the criminal enquiry found otherwise, it will be doubtful if the amounts in question could be even recovered from the petitioners, if they have received
29
it as part of bonafide or other valid transactions, unaware of it being proceeds of crime.
In the conspectus of the above, I order these Writ Petitions with the following directions:
a. The respondent Banks arrayed in these cases, are directed to confine the order of freeze against the accounts of the respective petitioners, only to the extent of the amounts mentioned in the order/requisition issued to them by the Police Authorities. This shall be done forthwith, so as to enable the petitioners to deal with their accounts, and transact therein, beyond that limit.
b. The respondent - Police Authorities concerned are hereby directed to inform the respective Banks as to whether freezing of accounts of the petitioners in these Writ Petitions will require to be continued even in the afore manner; and if so, for what further time, within a period of eight months from the date of receipt of a copy of this judgment. c. On the Banks receiving the afore
information/intimation from the Police Authorities, they will adhere with it and complete necessary action - either continuing the freeze for such period as mentioned therein; or withdrawing it, as the case may be.
30
d. If, however, no information or intimation is received by their Banks in terms of directions (b) above, the petitioners or such among them, will be at full liberty to approach this Court again; for which purpose, all their contentions in these Writ Petitions are left open and reserved to them, to impel in future.
Sd/-DEVAN RAMACHANDRAN,
JUDGE
lsn
42
THE PETITIONER SHOWING THE OUTSTANDING
BALANCE OF RS.1,12,84,596.46/- Exhibit P14 TRUE COPY OF THE EMAIL COMMUNICATION
DATED 22-05-2023 Exhibit P15 TRUE COPY OF THE REPLY MAIL DATED 23- 05-2023 STATING THE DEBIT FREEZE WAS
BASED ON A POLICE NOTICE REGARDING
SOME FRAUDULENT TRANSACTIONS AND
FURTHER FORWARDED A NOTICE UNDERSIGNED
BY POLICE HEAD CONSTABLE CYBER CRIME
POLICE STATION,
Exhibit P16 TRUE COPY OF THE PETITIONER'S ACCOUNT
WITH RESPONDENT NO.5 BEARING AN
OUTSTANDING BALANCE OF RS. 1,85,000.0
CR
Exhibit P17 TRUE COPY OF THE THE QUERY MAIL SENT
BY THE PETITIONER TO RESPONDENT NO.5
ON 22-05-2023 REQUESTING TO FURNISH
THE COPY OF FREEZING ORDER
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