• Help for unblocking my current account

In this case, I used letter:
"Z" for Arunachal Pradesh state, Itanagar police station where F.I.R is registered. "Y" for my customer who has done fraud - Karnatka, Tumakuru. "X" for my firm state - Uttar Pradesh, ghaziabad.

Business Background : I am running website for online payout/money transfer service, where customer can signup after KYC verification and bank account validation. I accept funds from my customer via third party payment collection service through virtual bank account number (which is unique for every customer registered on my website). My customer can send funds to that virtual account number only from his linked bank account which is verified (account holder name is matched with kyc). When my customer send funds to virtual account, third party sends confirmation data to my website database and then my automated script credit that fund in my customer wallet on my website. Once fund gets credited in customer wallet then customer can upload excel file of beneficiaries list for bulk transfer of money to their customers/agents/vendors. I take fee on every transaction as server fee from my customer. Transaction is processed by private bank (ABC) through "Money Transfer API" or "Payout API" and they are authorized by RBI. I am also authorized to use their money transfer api service as per agreement done with my banking partner - ABC.

Legal Issue : One of my customer misused our money transfer service by sending "fraud" money (6 crore) to virtual bank account from his own firm bank account and then he sends all that "fraud" money (6 crore) to his beneficiaries and F.I.R registered against his firm u/s 420 and police Investigation Officer send directions to my "Private Bank ABC" to take necessary action.

My Issue : Now my "Private Bank ABC" after receiving instructions from IO blocked my current account without any giving notice. All of my other customers money (18 lakh) stuck and my business reputation ruined because of account blocked and bank replied saying that you need NOC from police than we will unfreeze your bank account. I talked to IO of state "Z" and he asked me to send beneficiary list to whom fraud money is distributed. I gave all the beneficiary list with account number, ifsc, amount, imps transaction ID, date/time, etc in excel file with total amount 6 crore. I requested to IO to unfreeze my account as all fraud money (6 crore) is already withdrawn by my customer to his beneficiary accounts, but he denied. My firm registered in "X" state and my customer firm registered in "Y" state and F.I.R is registered in "Z" state from where "fraud" money came initially. Fraud money trail is from state "Z" to state "Y" (my customer state) and then to my state "X".

In this case, my first priority is for unblocking my current account. What should I do?
Note : Balance in my freeze current account is very less (18 lakh) compared to misused/fraud money (6 crore) so lien on current account will not work.
Asked 9 days ago in Criminal Law
Religion: Hindu

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9 Answers

It seems that your website transfers money like a wallet. The fraud was committed from karnataka and the fir was lodged in Arunachal Pradesh. You live in ghaziabad. Now you should pursue the case where the fir has been lodged.

Moreover file a petition in the high court for vacating the stay which has been imposed which is detrimental to your business interests.

Rahul Mishra
Advocate, Lucknow
12251 Answers
29 Consultations

5.0 on 5.0

You can issue a legal notice to the bank which froze your account on the basis of oral instructions from police 

After that you can escalate the matter to the higher office of the bank for relief and remedy.

If you do not get any proper response from the higher officals also, then you can drag the bank to consumer forum for deficiency in service as well as for compensation for mental agony they caused you by this act

T Kalaiselvan
Advocate, Vellore
72168 Answers
1078 Consultations

5.0 on 5.0

The SHO of the police station where the FIR has been registered may not give NOC to unblock the frozen bank account since the case may be under investigation. Try for anticipatory bail at sessions or High court, since there are chances that you may be arrested. In the meantime, If you are aware of the facts of the so-called "fraudulent transactions" and if you could solve the issue without the intervention of the police, you can approach the competent court (CJM/Sessions/or any designated court by the state government) to close the case and unblock the bank account or approach the High Court to quash the FIR.  

Muraleedharan R
Advocate, Trivandrum
22 Answers

5.0 on 5.0

File writ petition in HC to direct IO to unblock your account 


2) submit list of your customers who are affected by the blocking of account 

Ajay Sethi
Advocate, Mumbai
82096 Answers
5156 Consultations

5.0 on 5.0

Dear Sir,

 You may approach concerned High Court and get a direction for de-freezing your bank account.

Kishan Dutt Kalaskar
Advocate, Bangalore
5787 Answers
283 Consultations

4.8 on 5.0

Apply to the court to de freeze the account.  Without the permission of court bank is going to do nothing. 

Devajyoti Barman
Advocate, Kolkata
22341 Answers
343 Consultations

5.0 on 5.0

Dear sir/mam,

you need to inform the bank regarding the fraud in writing, if they do not coordinate with you, you can send a legal notice to the bank.. later, you can send that person a legal notice for the same and file an FIR. further, if the issue is not resolved, you can file a case against that person under section 420, criminal breach of trust, fraud, misrepresentation, harassment, etc. since the fir was filed in Itanagar police station, it can be contested in that state high court. you only have an option to contest this case in court so that your issue is resolved.

  • For more assistance, you can book a consultation with me.
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Anik Miu
Advocate, Bangalore
1125 Answers
10 Consultations

5.0 on 5.0

- As per your submissions , no offence made out against your said firm as the same role is only limited to accept and transfer the amount .

- If your account has been freezed on the instruction of the I.O of the case, then you should approach the court for getting direction in your favour. 

- Further, the bank and said I.O having no right to freeze the account without giving a notice to you. 

- You can lodge a compliant with the higher official of the bank against this services. 

Mohammed Shahzad
Advocate, Delhi
6719 Answers
71 Consultations

5.0 on 5.0

You need to approach the court for unfreezing the same 

Prashant Nayak
Advocate, Mumbai
23361 Answers
49 Consultations

4.4 on 5.0

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