Supreme Court Condemns Digital Arrest Scams as 'Robbery', Mandates National Action Plan
The Supreme Court of India, in a landmark ruling on Monday, has equated the massive siphoning of funds through digital arrest scams to acts of "robbery or dacoity." The court has issued a series of directives to the Central government, demanding the formulation of a comprehensive Standard Operating Procedure (SOP) to effectively combat these sophisticated cybercrimes.
Unprecedented Financial Losses Exceed State Budgets
A bench presided over by Chief Justice of India Surya Kant, alongside Justices Joymalya Bagchi and NV Anjaria, highlighted the staggering scale of the financial hemorrhage. The court noted that the over Rs 54,000 crore lost to digital fraud surpasses the annual budgets of several smaller Indian states, underscoring the severity of the crisis.
"These offences may occur due to either collusion or negligence on the part of bank officials. This necessitates prompt action by the RBI and banks," the bench observed, according to PTI reports. The statement points to potential systemic vulnerabilities within financial institutions that require immediate rectification.
Court Directs Multi-Agency Coordination and SOP Development
The apex court acknowledged existing efforts, noting that the Reserve Bank of India (RBI) has already framed an SOP requiring banks to temporarily block debit cards to prevent cyber-enabled fraud. However, the bench directed the Ministry of Home Affairs (MHA) to examine this RBI SOP, along with similar protocols or decisions taken by the Department of Telecom (DoT).
The MHA has been instructed to prepare a draft Memorandum of Understanding (MoU) within four weeks to create a unified, effective strategy to address such crimes. This move aims to streamline inter-departmental cooperation and eliminate gaps in the current regulatory framework.
CBI Investigations and Victim Compensation Framework Ordered
In a significant enforcement directive, the Supreme Court instructed the Central Bureau of Investigation (CBI) to identify all cases involving digital arrests. Furthermore, the court directed the governments of Gujarat and Delhi to grant necessary sanctions to the CBI to proceed with investigations in these matters, facilitating a smoother legal process.
Emphasizing justice for victims, the bench has asked the RBI, DoT, and other stakeholders to hold a joint meeting. The objective is to develop a robust framework for compensating victims of digital arrest scams. The court stressed the need for a "pragmatic and liberal approach" in awarding compensation, recognizing the traumatic and financial devastation caused to individuals.
Background and Previous Court Interventions
This ruling builds upon earlier interventions by the Supreme Court. On December 16 last year, the bench had asked the Centre to consider suggestions from the amicus curiae regarding victim compensation, expressing deep concern over the massive sums being siphoned out of the country by cybercriminals.
Earlier, on December 1, the court had directed the CBI to conduct a unified, pan-India probe into digital arrest cases. It had also questioned the RBI on why artificial intelligence was not being leveraged to trace and freeze bank accounts linked to such crimes, pushing for technological solutions in the fight against cyber fraud.
Understanding the Menace of Digital Arrest
Digital arrest represents an emerging and pernicious form of cybercrime. In these scams, fraudsters impersonate law-enforcement officials, court authorities, or government personnel. They intimidate victims through audio or video calls, hold them virtually hostage, and coerce them into transferring large sums of money under threat of legal action or arrest.
The Supreme Court has posted the matter for further hearing after four weeks, asking all concerned authorities to submit fresh status reports before the next date. This ongoing judicial oversight signals the court's determination to ensure concrete action is taken to protect citizens from this digital-era plunder.
