The Madhya Pradesh High Court has set a three-month deadline for cybercrime police to hold disputed funds in bank accounts, ruling on August 31 that only the contested amount of Rs 2,01,263.58 in a woman’s State Bank of India account can be frozen. The court ordered the disputed sum to be placed in a fixed deposit and released only upon a judicial magistrate’s order, underscoring a time-bound approach to such cases, according to medianama.com.
The court’s directive follows the Ministry of Home Affairs’ January 2, 2026 Standard Operating Procedure issued via the Indian Cyber Crime Coordination Centre, which mandates banks to freeze only the disputed amount and not the entire account balance. Banks must upload grievances within seven days, and investigating officers have fifteen days to decide on the hold. The SOP caps the maximum hold period at 90 days, a timeline the courts have reinforced throughout the year, as detailed by medianama.com.
This ruling addresses concerns over prolonged freezing of entire bank accounts during cybercrime investigations, which can cause financial hardship. By enforcing the SOP’s timelines and limiting freezes to disputed sums, the court aligns with regulatory efforts to balance investigation needs with account holders’ rights. The case highlights judicial support for procedural clarity in cybercrime financial disputes, a growing area of legal scrutiny in India’s digital economy, according to medianama.com.
The Madhya Pradesh High Court’s order marks a precedent in setting enforceable time limits on cybercrime-related fund holds, with the three-month deadline now binding for police investigations. This decision is expected to influence similar cases across India, reinforcing the Ministry’s SOP and judicial oversight in cybercrime financial matters, medianama.com reported.