Supreme Court Orders Nationwide Action Against Digital Arrest Scams, Directs RBI to Frame SOP
New Delhi: The Supreme Court on Tuesday issued a series of nationwide directions to strengthen India’s response to digital arrest scams and cyber-enabled financial fraud. The court directed the Reserve Bank of India (RBI) to prepare a Standard Operating Procedure (SOP) on mule bank accounts within four weeks and called for faster implementation of cyber fraud redressal systems across the country. Click Here To Follow Our WhatsApp Channel
The directions were issued by a Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi, and Justice V. Mohana while hearing a suo motu case on digital arrest scams.
The Bench considered a status report submitted by the Indian Cyber Crime Coordination Centre (I4C) under the Union Ministry of Home Affairs before issuing its directions.
RBI Asked to Prepare SOP on Mule Accounts
The Supreme Court directed the RBI to formulate a Standard Operating Procedure (SOP) to deal with mule accounts—bank accounts used by fraudsters to receive or transfer money obtained through cybercrime.
The SOP must be prepared within four weeks and shared with the Registrar General of every High Court.
Faster Cyber Fraud Redressal
The Court instructed all States, Union Territories and law enforcement agencies to quickly implement the:
- Grievance Redressal Module
- Money Restoration Module
These systems operate under the Ministry of Home Affairs’ Standard Operating Procedure issued on 2 January for the National Cyber Crime Reporting Portal and Cyber RMS.
The objective is to speed up complaint handling and help victims recover money lost in cyber fraud.
Public Awareness Campaigns Ordered
Recognising the growing number of digital arrest scams, the Supreme Court directed all States and Union Territories to launch awareness campaigns.
Authorities have been asked to educate people about:
- Digital arrest scams.
- How fraudsters impersonate police or government officials.
- Official cybercrime reporting channels.
- Available grievance redressal mechanisms.
High Courts and Lower Courts to Be Informed
The Bench directed the Registrar Generals of all High Courts to inform courts and adjudicating authorities dealing with bank account freezing cases about the newly established grievance mechanisms.
This would allow affected individuals to first use these systems before pursuing other legal remedies, without affecting their constitutional or statutory rights.
States Directed to Set Up Cyber Crime Centres
The Supreme Court also ordered States that have not yet established State Cyber Crime Coordination Centres to notify them within four weeks.
In addition, States have been directed to adopt the e-Zero FIR mechanism in consultation with the Indian Cyber Crime Coordination Centre (I4C) to improve the registration and investigation of cybercrime complaints.
Technology Measures Under Review
The Court directed the Ministry of Electronics and Information Technology (MeitY), the Department of Telecommunications (DoT) and the Indian Cyber Crime Coordination Centre to consult technology companies and intermediaries on additional safeguards.
The agencies have been asked to examine proposals including:
- Restrictions on telecom services used for fraudulent audio and video calls.
- Improved systems to recover money lost in cyber fraud.
- Better technological support for cybercrime investigations.
- Stronger compliance by banks and digital intermediaries.
Fresh Status Report Due in September
The Supreme Court will hear the matter again on 16 September.
By then, authorities have been asked to submit a fresh consolidated report containing:
- State-wise cyber fraud complaints.
- Bank-wise grievance data.
- Number of money restoration orders issued.
- Number of completed recoveries.
- Total amount restored to victims.
Background
The Supreme Court initiated the suo motu proceedings last year after a sharp rise in digital arrest scams, in which fraudsters impersonate police officers, CBI officials, judges or other government authorities to intimidate victims into transferring money.
Many victims, particularly senior citizens, have suffered significant financial losses through these fraudulent schemes.
(With inputs from ANI)
