The Kerala High Court has sounded a clear note of caution while dealing with a growing flood of petitions seeking de-freezing of bank accounts linked to cyber fraud cases. Hearing a writ petition filed by a Thrissur-based businessman, the court remarked that such cases now form one of the largest categories before it, often filed with sketchy details and raising serious concerns about misuse of judicial process.
Background
The petition was moved by Blue Star Aluminium, represented by its proprietor, seeking directions to a private bank to lift a freeze imposed on its account. The freeze was triggered following requisitions received in connection with suspected cyber fraud transactions.
Justice M.A. Abdul Hakhim noted that banks freeze accounts either on police requests or on their own suspicion, especially when transactions appear unusual. In recent months, the court has been dealing with nearly 200 such cyber-fraud related matters daily. Many of these involve accounts that witness crores of rupees moving within a short span after being opened, patterns that do not match the account holder’s declared business profile.
Court’s Observations
The bench made some unusually candid observations from the dais. “In most of the writ petitions, petitioners claim innocence but fail to even explain the nature of their business or the transaction in question,” the court observed.
The judge pointed out that several petitions are filed by very young individuals, sometimes just past the age of majority, with little clarity on how such large sums passed through their accounts. The court also flagged that some pleadings appear to be AI-generated, lacking basic facts, leaving even advocates struggling to answer simple queries during hearings.
Importantly, the court explained that even if there are procedural lapses in how an account was frozen, relief is not automatic. If circumstances suggest that an account may have been used to facilitate cyber fraud, the High Court can refuse to intervene under its constitutional powers.
Justice Abdul Hakhim also acknowledged the complexity of cyber fraud investigations. Some account holders may be innocent recipients of money legally due to them, while others may be operating so-called “mule accounts” to launder stolen funds. The situation is worsened, the court said, when police authorities from outside Kerala fail to respond to court notices, making it difficult to identify victims and culprits.
Decision
Taking note of instances where writ petitions were allegedly filed without the knowledge of the named petitioners, even using forged documents, the court decided to tighten the process. It directed that in all cases seeking de-freezing of bank accounts, the Station House Officer of the police station covering the petitioner’s address must be made a party.
The registry was instructed not to number such petitions unless the concerned SHO is impleaded. In the present case, the petitioner was directed to implead the local SHO, and the matter was posted for further consideration on December 15, 2025.
Pointwise Case Title & Details in Short English? Like Case Title, Case No., Case Type, and Decision Date only.
Case Title: Blue Star Aluminium v. The Federal Bank Ltd. & Others
Case No.: WP(C) No. 43123 of 2025
Case Type: Writ Petition (Civil)
Decision Date: 10 December 2025
