Bank account frozen in cybercrime probe? Karnataka CID helpdesk offers relief

The initiative follows the Karnataka High Court’s intervention in cases involving the freezing of bank accounts during cybercrime investigations.

Dr Pronab Mohanty appointed nodal officer

During a hearing on June 22 in Selladurai vs Reserve Bank of India and Others, Justice Suraj Govindaraj observed that Karnataka needed an appropriate grievance-redressal mechanism for complaints arising from debit freezes and liens ordered by investigating officers.

The court observed, “Insofar as actions initiated within the State are concerned, it would be necessary for the State of Karnataka to establish an appropriate grievance redressal mechanism to address complaints arising out of debit freezing and/or marking of lien pursuant to orders passed by any Investigating Officer within the State of Karnataka.” It then appointed Dr Pronab Mohanty, Director General of Police, Cyber Command, as the nodal officer.

The court also flagged the need for investigating officers to specify the amount for which a lien was sought, record reasons for a complete debit freeze, standardise procedures for freezing and de-freezing accounts, and periodically review freeze orders.

In a subsequent proceeding, the Karnataka High Court directed a petitioner and the bank representative to appear before the CID helpdesk with communications and orders received from the police stations relating to the freezing of the account.

Helpdesk to mediate frozen-account disputes

“The helpdesk will essentially function as a mediation centre, helping people understand why their bank accounts have been frozen and identifying possible ways to resolve the issue,” Mohanty told The Indian Express.

“If the freezing order has been issued by the Karnataka Police, we can examine the reasons behind it and, where appropriate, help expedite the process. If it has come from another state, we can coordinate with the concerned authorities there and also take up the matter with the bank. In each case, we will assess whether the entire account needs to remain frozen or whether placing a lien would be sufficient,” he said.

The helpdesk is currently operating on an experimental basis, and has conducted sessions on four Thursdays so far. Around seven to eight cases originating in Karnataka have been resolved, officials said, while cases from other states remain pending due to the need for coordination with the respective investigating agencies.

One such case involving a victim from Tamil Nadu highlights the plight of bona fide account holders whose accounts are frozen during cybercrime investigations. The case involved a property seller who had executed a registered sale deed and received the sale consideration from the purchaser. His bank account was subsequently frozen after investigating authorities alleged that part of the funds transferred by the purchaser was linked to a cyber fraud. The seller is unable to access the sale proceeds despite having transferred ownership of the property. The matter was subsequently referred to the CID helpdesk, but has yet to be resolved.

The CID is also using the Grievance Redressal Module introduced by the Indian Cyber Crime Coordination Centre, through which affected account holders can register complaints and submit documents.

6.11 lakh cases in 2024: Cybercrime surge in Karnataka

The National Cybercrime Reporting Portal data for 2024 shows that Karnataka recorded losses of Rs 2,915 crore across 6.11 lakh cybercrime cases, nearly four times the Rs 660 crore reported in 2023.

Between December 2025 and February 2026, the Cyber Command centre registered 60 First Information Reports in which 869 bank accounts were linked to cybercrimes. Investigators also received 8,788 complaints through the National Cybercrime Reporting Portal. The police alleged that account details were collected from the public and accounts were opened in the names of relatives to facilitate fraudulent transactions.

The funds were allegedly routed through these accounts before being withdrawn as cash, converted into cryptocurrency or transferred further, in some cases to handlers outside India. A coordinated crackdown during the period led to the arrest of 68 alleged mule-account handlers and account operators during searches at 35 locations across Karnataka.

The broader scale of cybercrime is reflected in government data. Bengaluru recorded 9,326 cybercrime cases up to November 15, 2025, involving losses of Rs 1,543 crore, of which only 716 cases had been solved. Across Karnataka, 13,000 cases were reported during the same period, involving losses of Rs 2,038.85 crore, with Rs 127 crore recovered.