'Why Freeze Entire Bank Account Of Traders Just Because Unknown Cyber Criminals Paid Them Through UPI?' Kerala High Court

The Kerala High Court recently directed Banks to limit the freezing orders issued in respect of persons into whose accounts amounts had been transferred via UPI platform as part of a cyber financial crime, to the amount involved in the crime as mentioned in the order/requisition issued by the Police Authorities. The Court in this case was considering a batch of pleas by persons who were aggrieved of having their bank accounts frozen due to a person/persons with whom they had no acquaintance, transferring certain amounts to the formers' accounts using the UPI platform, as part of a cyber financial crime. ".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. 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 small bills qua retail sale, restaurant food sale etc.