Bank Accounts of Leading Diamond Companies in Surat Blocked Due to Cyber Crime Complaints

Sources reveal that the bank accounts were frozen due to the automated response mechanism that banks employ when cyber crime complaints are lodged on the cyber crime reporting portal.

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Surat : The bank accounts of approximately 27 prominent diamond companies in Surat, known as the world’s largest diamond cutting and polishing hub, have been unexpectedly blocked, causing significant disruptions to their transactions during the holiday season. The freezing of these accounts comes in the wake of cyber crime complaints reported in Telangana and Kerala, leading to a cascade of actions that have left the diamond industry in a state of uncertainty.

Sources reveal that the bank accounts were frozen due to the automated response mechanism that banks employ when cyber crime complaints are lodged on the cyber crime reporting portal. While the intent behind this measure is to protect against fraudulent activities, the lack of clear guidelines for bank officials has resulted in the entire accounts being blocked, rather than just the specific amounts suspected to be involved in any wrongdoing.

Law enforcement officials with insight into the situation acknowledge that bank nodal officers have been issued instructions to exercise caution and restraint while dealing with such complaints. The primary principle guiding their actions is to ensure that individuals who report fraudulent activities do not suffer financial losses, while also preventing undue harassment of account holders who may inadvertently receive the suspicious amounts.

The prescribed protocol stipulates that in cases of reported fraud, only the amounts associated with the alleged criminal activity should be frozen. This approach aims to safeguard both the complainant and the recipient of the funds, mitigating undue consequences for all parties involved. Bank nodal officers are expected to adhere to this framework, emphasizing a balanced approach in their actions.

The diamond companies affected by this sudden freeze have promptly communicated their plight to Surat’s Additional Police Commissioner, Sharad Singhal.

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