Supreme Court Labels ₹54,000 Crore Digital Fraud as 'Dacoity', Urges Government for SoP
On Monday, the Supreme Court labeled the embezzlement of more than ₹54,000 crore through digital scams as outright 'robbery or dacoity' and urged the Centre to formulate a standard operating procedure in collaboration with stakeholders such as the RBI, banks, and the Department of Telecommunications to address these incidents.
A panel including Chief Justice of India Surya Kant and Justices Joymalya Bagchi and N V Anjaria noted that the funds embezzled through digital fraud exceed the budgets of numerous small states.
Highlighting that these offenses might result from either the collusion or negligence of bank officials, the highest court emphasized the necessity for prompt actions from the RBI and the banks.
The Ministry of Home Affairs has been instructed to review the Standard Operating Procedure of the Reserve Bank of India, along with similar procedures or decisions from the Department of Telecom, and to draft a Memorandum of Understanding within four weeks to efficiently address these offenses.
The panel has also observed that the RBI has developed a standard operating procedure directing banks to temporarily suspend debit cards to avert cyber-related fraud.
It instructed the CBI to pinpoint cases involving digital arrests and requested the governments of Gujarat and Delhi to grant permission to the federal investigative agency to carry out investigations into these specific digital arrest cases.
The Supreme Court has instructed the RBI, the DoT, and other relevant parties to convene a meeting to establish a framework for compensating victims in digital arrest cases. The court emphasized the need for a practical and generous approach in awarding compensation to these victims and scheduled the plea for another hearing in four weeks.
It requested the authorities to submit new status reports prior to the upcoming hearing date.
On December 16, the bench requested the Centre to consider the recommendations made by the amicus curiae regarding compensation for victims of digital arrests, while expressing concern about the vast sums of money extracted from the country by cybercriminals.
Digital arrest is an increasing type of cybercrime where scammers impersonate law enforcement, court officials, or government agency staff to threaten victims via audio and video calls. They detain the victims and coerce them into paying money.
On December 1, the highest court instructed the CBI to conduct a nationwide investigation into digital arrest cases and questioned the RBI on its lack of use of artificial intelligence to identify and freeze bank accounts utilized by cybercriminals.
