SC issues fresh directions to strengthen fight against digital arrest scams

New Delhi, Aug 4 (AHN) The Supreme Court on Tuesday issued a fresh set of nationwide directions to strengthen the institutional response against the growing menace of "digital arrest" scams, directing the Reserve Bank of India (RBI) to frame a Standard Operating Procedure (SOP) on mule accounts within four weeks and asking all states and Union Territories (UTs) to operationalise cyber fraud grievance redressal and money restoration mechanisms.

A Bench of Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and V. Mohana passed the directions after taking on record the fourth status report filed by the Indian Cyber Crime Coordination Centre (I4C), Ministry of Home Affairs, on the steps taken by various ministries, regulators, investigating agencies, telecom service providers and intermediaries pursuant to the apex court's earlier orders.

The top court also directed the Centre's Inter-Departmental Committee to examine a shared liability and victim compensation framework for victims of digital arrest scams, while asking states to notify and operationalise their State Cyber Crime Coordination Centres within four weeks and adopt the e-Zero FIR mechanism in consultation with I4C.

"The Reserve Bank of India shall, within four weeks, prepare and circulate a Standard Operating Procedure (SOP) for dealing with mule accounts/accounts linked to money laundering activity and cyber-enabled fraud," the CJI-led Bench ordered, adding that a copy of the final SOP should also be furnished to the Registrar General of every High Court.

The apex court further directed the Registrar General of every High Court to bring the grievance redressal mechanism to the notice of courts and adjudicating authorities dealing with freezing of bank accounts in cyber fraud cases, clarifying that while aggrieved persons may ordinarily be encouraged to first avail the mechanism, it would not bar constitutional or statutory remedies.

Directing authorities to ensure expeditious disposal of matters relating to freezing of bank accounts arising out of cyber-enabled financial frauds, the top court also recommended that State Legal Services Authorities immediately undertake public awareness initiatives on digital arrest scams, cybercrime prevention, and mechanisms available for recovery of defrauded amounts.

Recording the progress made so far, the CJI-led Bench recorded that complaints relating to digital arrest scams received on the National Cyber Crime Reporting Portal had declined from 1,23,672 in 2024 to 58,249 in 2025, and further to 16,377 till June 30, 2026.

"The corresponding reported defrauded amounts have also substantially reduced. While this trend is certainly encouraging, it bears saying that continued monitoring remains indispensable," it observed.

"While the progress reported at this stage is appreciable, the mechanisms already put in place require wider adoption, faster implementation, and continued follow-up," it added.

The matter has been posted for further hearing on September 16.

The proceedings arise out of the Supreme Court's suo motu exercise initiated after a senior citizen couple informed the apex court that they had been defrauded of their life savings through a "digital arrest" scam.

In earlier orders passed on December 1, 2025, the apex court had entrusted investigation of digital arrest scams to the CBI, directed telecom service providers and intermediaries to cooperate with the probe, ordered states to facilitate pan-India investigations, and called for measures to curb misuse of mule bank accounts and SIM cards.

Subsequently, on February 9, 2026, the CJI-led Bench directed the Union Ministry of Home Affairs to implement a uniform SOP for grievance redressal and restoration of defrauded money, asked the RBI to finalise its SOP on temporary debit holds for suspicious accounts, and called upon various authorities to evolve a victim compensation framework.