• Bank account frozen

Hello, I would like to learn more about this situation I'm finding myself in. 

My father passed away recently and assigned me as the nominee of his bank account including FD's. Few days after he passed away a deposit occurred into my fathers account. Now, the person concerned from whose account the money was deposited filed a police complaint that the transaction was fraudulent and that be returned back to him. The police went ahead and froze my fathers bank account for further investigation. 

I would like to know, if this is possible as per the law for the police to freeze the entire amount in my fathers account for which my father assigned me as the nominee? or the police is supposed to only freeze the amount in question for his investigation purpose?

I even went to the bank and advised them to reverse all deposits in my fathers account after his passing away but the bank said they cannot do it either. 

Is it possible under constitution of India to deny my fundamental rights as the nominee of my fathers account and block me from accessing the funds that my father assigned for me?

I do feel this situation as unjustified and therefore I would like to take an advice from a Lawyer.
Asked 4 years ago in Constitutional Law

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37 Answers

Police will investigate into the transaction if any made by your father as if the deposits are made towards consideration thereof. 

During this process police can freeze the account till completion of investigation. 

However if police take unreasonably long time to complete the investigation you can seek necessary directions to police for early completion of investigation and/or to unfreeze the account.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

Talk to police if they can unfreeze the account against any bond. There may be such possibilities. 

Reasonable time is that what you seem to be reasonable may be 2 to 3 months based on the complexity of the investigation process.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

If the deposits amount is very small compared to the total balance in the account it would be unjustifiable to freeze the entire amount. 

In such case if police disagree with the bond proposal you may approach court for necessary directions in this regard.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

Please do understand that the nominee will only be the custodian of the investment till it is given to its right beneficiary(s) .The account holders can change the nomination any time. 

For Settlement of Claims  you may  approach the bank with Claim Form ,Death certificate issued by municipal authorities / government department and Proof of Address & Photo ID of the Legal heirs / Survivor / Nominee (as required by the Bank).

If you get a replay about the freezing then approach the police or court for releasing the money.

Ajay N S
Advocate, Ernakulam
4072 Answers
110 Consultations

5.0 on 5.0

Kindly check the amount was given by on what conditions and what was the relationship with your father.

 

You that person had made the complaint in police station. 

 

Get the exact reason and court will also check the same to release or free the FD's.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

1) nominee is only trustee for legal heirs 

 

2) Police for purpose of investigations can freeze bank account

3) you can be blocked from accessing bank account pending completion of investigations 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Police ought not to take more than 6 months or so for completion of investigations 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Fixed deposit should not be frozen 

 

only bank account can be frozen 

 

you can execute indemnity bond to indemnify bank against claims made by third parties 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

No you should file a case before civil judge where your bank lies. 

Court will give direction to bank to release your remaining amount in your favour

Tarun Budhiraja
Advocate, Rohtak
379 Answers

4.8 on 5.0

No money is given on police bond. It is written guarantee given to the police that he will turn up Whenever required to do so by the police. 

Do not give any money to the police. Police can not claim any money.

You can also provide for surety for this purpose. But it solely depends on the police officer to accept or not. 


It is not indemnity bond. It is a police bond u/s 102 of Crpc. Bank is not permitted to accept indemnity bond to allow operation of the account unless the freezing of the account is removed by the police. Here bank has no role to play. Clear it. 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

You can execute separate indemnity bond to prove your bonafide 

 

no need to give money from other accounts 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

For the purpose of investigation, account has been seized. Tell the police what ever amount credited by mistake, can be return, you  have no role in trasfer of money.

Ask the polcie to provide you FIR,

 

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

Third party cannot claim more than amount due and payable 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Bank can not do anything from its own.  

Talk to police in this regard and inform the developments for further advice.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

No it's illegal. You can approach the court against bank and police. You can also go to consumer court for compensation against bank

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

No.

Withdrawal full amount except amount belong to him.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

1) nominee is only trustee for legal heirs 

 

2) you and your sister have equal share in money lying in bank accounts and fixed deposit 

 

3) bank can deny nominee access to funds 

 

4) better settle with your sister 

 

5) you can apply for succession certificate in your name and that of sister name so that bank can disburse funds to you both 

 

 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Nominee is not the owner. He holds it in trust on behalf of all legal heirs. 

As a general practice bank hands over the entire balance to the nominee who is liable to distribute it to all legal heirs. But if the same is disputed by any legal heirs, bank is well within its power to hold the money till legal heirship disputes are settled. Bank can claim legal heir certificates for proper disbursement of the money of deceased account holder. 

Police can instruct bank to hold or put on lien against any complaint directly liked to the account.

Your sister being a legal heir has right to raise objection to the disbursement of the fund to the nominee.

Provide legal heir certificate to the police with a copy to the bank for disbursement of the fund. 

 

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

No but in case of dispute bank can deny excess to account.

This is not a matter of police involvement and police action is without authority.

Yes. Account belongs to your father and she is heir and have inheritance right.

You are nominee, can withdraw amount and than shall be distributed among legal heirs.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

1 . It can be denied through an official order. 

2. Yes. But it can be challenged in court. 

3. Yes. 

Its already adviced. 

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

Dear

Nominee is just a custodian of the amount  lying in the account of the deceased because amount should be distributed among all legal heirs equally as per Indian succession laws. 

You need to get succession certificate from Court to claim the money in case if any dispute arises between the legal heirs 

Police have no right to freeze bank accounts on basis of GD entries you can approach court for mandatory injunction to bank for unfreezing of the account. 

 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

1) Nominee is a person of that particular assets to get handover from bank or bank gives handover to that particular person whose name is mentioned as nominee.

 

2) While legal heirs are real sharers in the property.

 

3) No need of police your sister also can instruct to bank not give deposit amount unless n until legal heirs certificate is produced.

 You should get succession certificate from court.

 


  • NOC or No Objection Certificate (from legal heirs other than the petitioner)
  • Any legal heir who wishes to relinquish his right to the estate, he must declare so in an affidavit.

Ganesh Kadam
Advocate, Pune
12910 Answers
253 Consultations

4.9 on 5.0

First of all find out that how this amount was deposited to your father's account.

In any case this account belonged to your deceased father hence as a nominee yo should have intimated the bank about your father's death and should have made it inoperative.

The bank cannot freeze the account on the instructions of police just because an amount was deposited into his account due to the mistake of bank staff.

As a nominee to your father's account you can issue a legal notice to the bank to release the account or else you can approach consumer forum with a complaint seeking relief as well as compensation for this deficiency in service.

The bank should probe into this fraudulent transaction instead of freezing the account because the police is not the authority for this.

 

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

You can issue a legal notice as suggested in my previous post and take steps to get the account released.

You have not stated that how and who was responsible for this fraudulent transaction.

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Once the account is frozen, it would be for the entire amount lying in the account and part amount cannot be frozen.

What kind of fraudulent transaction it is?

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

I am afraid that the police may not cooperate with you in this connection.

The police is of no use to you because the account has not been frozen, and also the police have just made some enquiry on this whereas the bank is trying to cover the mistake of its own staff.

You can approach the higher official of the bank in this connection, submit an application seeking its intervention and provide you relief.

You may also mention that due to the involvement of some bank staff, you as a customer is suffering , if there is no proper response you may approach consumer forum too.

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

Without ascertaining the facts you have posted the query with incorrect information.

If there was some problem with your sister in this regard, she should take legal action through court only and not through police.

The police have nothing to do with this.

As a nominee you can draw the money and disburse the same equally to all the legal heirs of the deceased account holder.

The bank cannot entertain any such complaint by an individual.

The bank can stop the payment only by a court order and not on any complaint before it.

 

 

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

He presence is not required. Only required information and signature may be required

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

You can engage a lawyer File Petition for issue of succession certificate 

 

2) serve her notice at her last known address 

 

3) bank would not disburse funds to your sister without court orders 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

Her presence not required.

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

She may take advantage of your absence in India and may even forge your signature to usurp the money lying in his account.

You can issue a legal notice to the bank in this regard stating that since you are the nominee, the amount lying in the account of the deceased has to be paid to you immediately or else you will drag them to the consumer forum for deficiency in service.

The bank cannot hold the amount in the absence of any court restraining order.

The police cannot instruct the bank to stop the payment just because they received a complaint.

You may approach even civil court seeking direction to the bank to pay the amount to the nominee especially when there is no restrictions for such payment by an order of a court of law.

You can issue a legal notice to the police also to not to interfere in the civil matter because there is no offence committed by anyone hence they do not have any rights to direct the bank authorities to stop the transaction or payment.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

There is no guarantee that she will honour her word 

 

2) better to obtain succession certificate for money lying in bank account in favour of legal heirs 

 

3) then apply to bank to unfreeze the account 

 

4) what’s app messages are admissible in evidence 

 

5) please note that litigation is long drawn and expensive proposition 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

IF she change her words, you can`t do anything. Such deals have no legal back up. File civil suit to un freeze account. Until she do not or give written permission to bank to un freeze account, don`t believe her.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22596 Answers
31 Consultations

4.4 on 5.0

Submit legal heirs certificate to bank and a copy to  police. Tell police to inform the bank that other party has produced legal heir certificate to the said bank balance and there by the allegation is resolved. Further retention is not required. Bank is free to disburse the money to the legal heirs under intimation to the police.

You do not deposit any money to your sister account. Tell bank to do the needful.

Kallol Majumdar
Advocate, Kolkata
2837 Answers
14 Consultations

5.0 on 5.0

it can be sent in local language 

 

2) not necessary it should be in english language 

Ajay Sethi
Advocate, Mumbai
94520 Answers
7485 Consultations

5.0 on 5.0

1. Yes. 

2. You need to execute and agreement of settlement with her and get it registered before transferring the amount. 

3. It's better you execute a draft agreement or detailed email but I will advice a registered draft agreement

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

For whatsapp message to be admissible it is not mandatory that language should be English. You need to produce the screenshot of Whtsapp messages along with certificate of 65-B evidence act 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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