Procedure for the Release of Seized Cyber Fraud Amount

One of the most common queries we receive at our office regarding cyber fraud is when the Cyber Cell informs a client that their money has been frozen in a bank account. The police typically advise the victim to obtain a court order to release these funds.

So, what do you do now? And what documents are necessary before filing an application or consulting a lawyer?

Let’s break it down step by step.

Step 1: Collect Your Documents

Before you consult a lawyer, it is crucial to have all your paperwork in order. Being prepared will save time and allow your legal counsel to act quickly. Ensure you collect the following documents:

1. Freeze Confirmation Letter: Proof from the bank or police confirming that the account is frozen.

2. FIR or Complaint Number: The official reference number of the cyber crime complaint you filed.

3. Cyber Police Station Details: The name and jurisdiction of the police station handling the case.

4. Amount Seized: The exact amount of money that has been held/frozen.

5. Date of Seizure: When the money was frozen.

   
   

Step 2: The Legal Procedure

Once you have these documents, your lawyer will file an application for the release of the funds.

Under what provisions is this application filed?

The lawyer will file the application under Section 503 of the Bharatiya Nagarik Suraksha Sanhita (BNSS).

Section 503. Procedure by police upon seizure of property:

(1) Whenever the seizure of property by any police officer is reported to a Magistrate under the provisions of this Sanhita, and such property is not produced before a Criminal Court during an inquiry or trial, the Magistrate may make such order as he thinks fit respecting the disposal of such property or the delivery of such property to the person entitled to the possession thereof, or if such person cannot be ascertained, respecting the custody and production of such property.

(2) If the person so entitled is known, the Magistrate may order the property to be delivered to him on such conditions (if any) as the Magistrate thinks fit and if such person is unknown, the Magistrate may detain it and shall, in such case, issue a proclamation specifying the articles of which such property consists, and requiring any person who may have a claim thereto, to appear before him and establish his claim within six months from the date of such proclamation.

Understanding the Law in Layman’s Terms

This section applies when property (in this case, money) has been seized by the police but is not currently being presented as evidence in a Criminal Court inquiry or trial. The Magistrate has the authority to decide what happens to this property.

Here is how the process works based on the owner's status:

A. If the Owner is Known

If the rightful owner (you) is identified, the Magistrate has two main options:

• Order Delivery: The Magistrate can order the property (money) to be returned to the owner.

• Conditions: The court may set specific conditions before releasing the funds, such as requiring proof of ownership or a surety bond.

  
  

B. If the Owner is Unknown

If the rightful owner cannot be identified, the Magistrate will:

• Detain the Property: Keep the money in custody.

• Issue a Proclamation: Make a public announcement detailing the seized property.

• Claim Period: Allow any person claiming ownership to come forward and prove their claim within six months from the date of the proclamation.

In a cyber fraud scenario where the victim is identified, the owner is known. Therefore, after your lawyer presents the evidence and documents mentioned in Step 1, the court will analyze the claim and pass an order for the release of the seized amount back to you.