The Gauhati High Court on Monday stepped in to give partial relief to a small meat trader from Guwahati whose bank account had been frozen for months over a cyber crime complaint. Sitting in court, one could sense the bench trying to walk a tightrope-protecting an ongoing investigation while ensuring a running business is not pushed to the wall without reason.
Background
The case was filed by M/s Nepali Cutting Meat Shop, a micro enterprise operating from Maligaon, Guwahati. The shop maintains a current account with the Bank of Maharashtra, which had been active since October 2024. According to the petition, the account had a balance of over ₹12 lakh.
Trouble began in January 2025, when debit transactions suddenly stopped. On enquiry, the proprietor was told that the account had been frozen following a complaint from the National Cyber Crime Reporting Portal (NCCRP). No prior notice, no detailed explanation-just a freeze. A complaint to the RBI’s Banking Ombudsman also failed to bring relief.
The petitioner told the court that his business was legal, routine, and had no connection with any cyber fraud.
Court’s Observations
Justice Sanjay Kumar Medhi heard both sides and noted that the bank had acted on instructions linked to a cyber crime complaint. From the bank’s affidavit, it emerged that the disputed amount was relatively small-initially stated as ₹17,040, later clarified to be about ₹20,176.
The petitioner’s counsel relied on rulings from the Madras, Delhi, and Bombay High Courts, arguing that freezing an entire account without clearly identifying the disputed amount was unfair. The bench appeared to agree in principle. It observed that “under the guise of investigation, freezing the entire account” could seriously harm an otherwise innocent account holder.
At the same time, the court acknowledged the bank’s concern. Cyber fraud, the judge remarked in open court, has become a “menace,” and investigations cannot be taken lightly.
Decision
Balancing both sides, the court directed that the meat shop be allowed to operate its bank account, but with safeguards. The bench ordered that ₹1 lakh be kept in lien for six months.
The court made it clear that if, within this period, no material surfaces linking the petitioner to cyber crime or fraudulent transactions, the lien would automatically end. The petitioner was also directed to furnish an indemnity bond to protect the bank from any future loss arising from illegal activity connected to the account.
With these directions, the writ petition was disposed of.
Case Title: M/s Nepali Cutting Meat Shop vs Bank of Maharashtra & Others
Case No.: WP(C)/2288/2025
Case Type: Writ Petition (Civil)
Decision Date: 08 December 2025
