Businessman’s bank account put on hold after a Rs 2,253 transaction was flagged, requests to use the remaining balance went unanswered; High Court orders Axis Bank to release the money

A Kolkata businessman running small proprietorship firm spent nearly five months locked out of his own bank account after a single transaction worth Rs 2,253 got flagged in a cyber fraud case he says he knew nothing about. His account with Axis Bank, Dalhousie branch, held far more money than disputed amount, yet entire account stayed frozen on bank's instructions from Tamil Nadu cyber police.

Businessman repeatedly wrote to bank and police asking for details of case and requesting release of remaining balance so he could run his business. None of his letters got a response, and matter eventually reached Calcutta High Court, where Justice Rishad Medora ordered Axis Bank to immediately release non disputed funds.

What Happened To Businessman's Bank Account

Businessman's account at Axis Bank, Dalhousie branch Kolkata, was used for daily operations of his proprietorship firm Rohan Retail. In May 2025, bank received notice from Inspector of Police, Cyber Crime Wing, Central Branch, Tambaram Commissionerate in Tamil Nadu. Notice, issued under provisions corresponding to Section 102 of old criminal procedure code, directed bank to lien mark one transaction and freeze account in connection with an ongoing cyber crime investigation.

Transaction flagged by police was dated August 22, 2024, worth Rs 39,899, out of which disputed portion was only Rs 2,253. Despite such small amount under dispute, bank went ahead and froze entire account, cutting off businessman from all his funds.

Why Was Account Frozen Over Small Amount
Court record shows no explanation was given for why full account needed to be frozen when police notice itself only asked for a lien on one specific transaction. Businessman's advocate argued that direction to lien mark a particular amount did not justify blocking access to entire account balance, which ran well beyond disputed sum.

Judge Rishad Medora, hearing matter, noted he was unable to understand reasoning behind such a broad freeze when notice clearly pointed to only one transaction. Court observed action appeared to be without any justification.

What Did Bank Say About Unfreezing Account
Axis Bank, represented in court, said it was only acting on directions received from police and was bound to follow them. In a letter dated September 4, 2025, bank had informed businessman that account could not be unfrozen unless a formal revocation order came from authority that had originally directed freeze.

Bank's position essentially left matter entirely in hands of Tamil Nadu police, who businessman says never responded to any of his communications.

What Did Businessman Tell Court
Businessman told court he had no knowledge of cyber fraud case connected to his account and had never received any communication from investigating police. He said he remained willing to cooperate with authorities and provide any documents they needed, but could not even get basic information about case against him.

He further submitted that freeze had caused serious financial stress since his proprietorship depended on that very account for daily business, and he had been unable to access funds for months despite writing multiple letters to both bank and police seeking clarity.

What Did High Court Observe
Court noted that respondent police officer did not appear on any hearing date despite being served copy of writ petition through speed post as well as email. Justice Medora remarked that failure to respond to businessman's letters, combined with failure to appear before court, did not inspire confidence in police action.

Since disputed value in transaction was only Rs 2,253, court held there was no justifiable reason for freezing businessman's entire bank account. No affidavit in opposition was called for, meaning allegations made in petition were treated as not admitted by respondents, though order was passed largely based on record placed before court.

What Was Court's Final Order
Calcutta High Court directed Axis Bank to immediately defreeze businessman's bank account, allowing him access to his full balance. However, court made clear that lien on disputed amount of Rs 2,253 must continue, meaning businessman cannot withdraw that specific sum until further directions from Tamil Nadu police.

Petition was disposed of with no order as to costs. Businessman and bank were both directed to send copy of judgment to concerned police officer through email and speed post, since officer himself had chosen to stay away from proceedings throughout.