MP HC sets 3-month limit for police hold on money

The Madhya Pradesh High Court has ruled that cybercrime police must conclude their proceedings on frozen assets within three months. This decision mandates that if the deadline is not met, the funds held can be released to the account holder.

The court's order, issued by Justice Sandeep N Bhatt on August 31, specifically addresses a case where a woman's bank account was frozen. The High Court instructed the State Bank of India to unfreeze the account and place the disputed sum of Rs 2,01,263.58 (approximately $2,400) into a fixed deposit. This amount can only be released upon an order from a competent judicial magistrate.

This ruling introduces a crucial time limit for investigations, empowering account holders by granting them access to their funds if the legal process extends beyond the stipulated period. This marks a departure from previous practices where asset freezes could persist for extended durations without clear resolution timelines.

The case is part of broader efforts in India to enhance the efficiency of cybercrime investigations. A Standard Operating Procedure (SOP) was introduced in early 2026 by the Ministry of Home Affairs, outlining guidelines for the custody and restoration of funds related to cybercrime complaints, typically setting a 90-day limit for such processes.

The High Court's decision underscores the importance of adhering to established deadlines and ensuring that investigations proceed justly without undue delay. While the ruling does not dismiss charges or acquit the accused, it serves to protect citizens' rights and prevent prolonged freezing of assets without legal justification.