‘Irreparable prejudice’: Karnataka High Court asks private bank to unfreeze account over ‘receiving’ Rs 240 from cyber fraudsters

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2 min readBengaluruApr 24, 2026 05:16 PM ISTFile photo of the Karnataka High Court.The Karnataka High Court has directed a private bank to unfreeze an account that was frozen for having received ‘cybercrime proceeds’ amounting to Rs 240.In an order dated April 2, Justice Sachin Shankar Magadum allowed the petition filed by one Sayed Sarfaraz Ahmed, a milk vendor in Bengaluru, and said, “When the scope of investigation is confined to a minuscule sum, the freezing of the entire account, which contains funds far in excess of the disputed amount, would be manifestly arbitrary and disproportionate.”In March, DBS Bank India Limited had received communications from the Cyber Crime Cell, Patiala, Punjab, and the Cyber Crime Cell, Ahmedabad, which stated that cyber fraudsters had credited Ahmed’s bank account with Rs 120 each in two transactions.Acting on the communication, the bank froze the account that had around Rs 10,000 at the time.Advocate Sirajuddin Ahmed, appearing for the petitioner, argued that the measure adopted by the bank has the effect of disabling the petitioner from accessing a substantially higher amount than what is under dispute.Following this, the Bench noted, “The action (of Bank) not only causes undue hardship to the petitioner but also results in irreparable prejudice to his right to carry on his lawful avocation and financial affairs, without in any manner substantially advancing the object of the investigation.”Directing the bank to mark ‘lien’ only to the extent of the alleged disputed amount of Rs 240, the court said, “Such a course would strike a balance between the requirement of investigation and the petitioner’s fundamental right to operate his bank account and carry on his livelihood.”Story continues below this adAllowing the petition, the court permitted Ahmed to operate his bank account, subject to his maintaining a minimum balance of Rs 500. © The Indian Express Pvt LtdAdvertisementLoading Recommendations...Live BlogNews Today Live Updates, 24 April | Baramati belies hopes of a high turnout: 58.27% till 5 pm2 minutes agoUK Board Result 2026 Live Updates: Uttarakhand board Class 10th, 12th marksheets at 10 AM on April 252 minutes agoIran, US, Israel War Ceasefire News Live Updates: HRW urges Lebanon to join ICC after journalist’s killing3 minutes agoCUET PG Result 2026 Live Updates: Results soon; how to download scorecards once released?5 minutes agoIPL 2026 RCB vs GT Live Score, Playing 11 Updates: Bengaluru take on Gujarat Titans in final home game at Chinnaswamy Stadium6 minutes ago