Supreme Court entrusts CBI with pan-Indian probe into digital arrest cases

Supreme Court has asked the CBI to prioritise its investigation into digital arrest scams, directing all states and government agencies to cooperate and empowering the agency to examine bankers

Don't want to miss the best from Business Standard?

The Supreme Court on Monday directed the Central Bureau of Investigation (CBI) to take charge of the probe into digital arrest scams across India, flagging the issue as a matter requiring “immediate attention”.

 

A bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi ordered that the agency treat such scams as its first priority while dealing with cybercrimes that also include investment and part-time job frauds. The direction came in a suo motu case taken up by the court in October to address the rise in online extortion rackets.

 

"Digital arrest scams require immediate attention of the premier investigating agency of the country. Therefore, we proceed with a clear direction that the CBI shall firstly investigate cases on digital arrest scams. The other categories of scams shall be taken up in the next stages," the court ordered.

 

The bench noted that these scams involve impersonation of law enforcement officials, and coercion of victims — often senior citizens — into transferring large sums of money under threat of arrest.

 

"Since cognizance was taken, several victims have approached the court. The magnitude of this organised crime is evident from the multiple FIRs (first information reports) registered across states,” the order stated.

 

The court gave the CBI a free hand to examine the role of bankers under the Prevention of Corruption Act, wherever fraudulent accounts have been used to facilitate digital arrest scams. The Reserve Bank of India (RBI) was also asked to assist the court by exploring whether artificial intelligence (AI) or machine learning (ML) systems could be engaged to detect suspicious accounts and automatically freeze proceeds of crime.

 

Authorities governed by the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, such as social media platforms, have been directed to cooperate fully with the CBI during the investigation. To ensure uniformity of action, states that have not yet granted general consent to the CBI have been told to do so immediately, enabling the agency to carry out investigations across India without jurisdictional barriers.

 

Recognising the global reach of such frauds, the court further authorised the CBI to seek the assistance of Interpol whenever required. The Department of Telecommunications (DoT) has also been asked to propose safeguards to prevent misuse of SIM cards, especially where multiple numbers are issued in the same name.

 

State governments, meanwhile, have been directed to hasten the establishment of dedicated cybercrime centres. Any state that faces administrative or financial constraints should inform the bench, so that remedial steps can be considered, the top court said.

 

At an earlier hearing, the court had been told that nearly ₹3,000 crore had been siphoned off through digital arrest and related scams. The suo motu case itself was triggered by a letter from an elderly couple who lost ₹1.5 crore to fraudsters posing as CBI and judicial officers. The scammers used forged Supreme Court documents and video calls to intimidate the victims into paying under threat of arrest.

 

The court also took note of media reports suggesting that similar scams had occurred across several states and sought responses from the Centre and the CBI on October 17. It also requested the assistance of the Attorney General of India.