Delay in reporting unaccounted money found in one's bank account can land an individual in legal trouble, as highlighted by a recent Supreme Court case. The apex court refused to grant protection from arrest to a man who took four months to inform the police about a substantial sum of ₹20 lakh appearing in his account from an unknown source. The court's decision underscores the importance of promptly reporting suspicious financial activity to the authorities.

The case involved a resident of Shivnagar village in Bihar's Nawada, who sought anticipatory bail after being summoned by the Delhi police for cyber fraud related to the unexpected deposit. He claimed that his tenant had misused his account details, obtained under the guise of facilitating an online loan transfer. The tenant allegedly hacked the account after gaining access to the details.

A bench of Justices Sandeep Mehta and P B Varale questioned the advocate representing the petitioner, Rakesh Singh, about the timeline between receiving the money and reporting it to the police. Upon learning of the four-month delay, the bench dismissed the petition, emphasizing that such a delay could not be justified.

The details revealed that multiple transactions, totaling over ₹5 crore, had occurred in the account on a single day, originating from various locations across the country. One of these transactions, a ₹20 lakh transfer, was linked to a cyber fraud case registered in Delhi. The deposited amount was quickly transferred to three other accounts within hours.

This case serves as a stark reminder of the legal obligations surrounding unexplained wealth and the potential consequences of failing to report it promptly. Financial institutions are mandated to report suspicious transactions to regulatory bodies, and individuals also have a responsibility to report any unusual or unexpected deposits to the police. The Supreme Court's stance indicates a strict approach towards such delays, reinforcing the need for vigilance and transparency in financial dealings.

There may be legitimate reasons why funds appear in an account unexpectedly, such as errors or misdirected transfers. However, delaying the reporting of such incidents can raise suspicion and potentially implicate the account holder in illegal activities. The burden of proof may then shift to the individual to demonstrate the legitimacy of the funds and their lack of involvement in any illicit scheme.

This ruling also brings to light a previous case regarding unaccounted cash found at the residence of a Delhi High Court judge. In March 2025, the Supreme Court addressed allegations of "huge sums of unaccounted money" discovered at the official residence of Justice Yashwant Varma, following a fire. The court made public various reports, documents, photos, and videos related to the discovery. While this case is different in nature, it similarly deals with the issue of unaccounted wealth and the questions it raises.