The Supreme Court has stressed the urgent need to tackle digital arrest frauds with an ‘iron hand,’ following a disclosure that Indian citizens have lost approximately ₹3,000 crore to such scams. A bench led by Justice Surya Kant highlighted the escalating nature of the problem, stating, “If we ignore this problem or cow down now and don’t pass stringent orders, the problem will magnify. We are determined to deal with this problem with an iron hand.”
These strong remarks were made after the court examined a sealed report from the Ministry of Home Affairs (MHA) and the Central Bureau of Investigation (CBI). The proceedings were initiated suo motu based on a letter from an elderly couple who lost over ₹1 crore to a digital arrest scam orchestrated by individuals impersonating law enforcement officers.
Recognizing the gravity of the issue, the court has appointed senior advocate NS Nappinai as amicus curiae to assist in finding solutions. Justice Surya Kant, alongside Justices Ujjal Bhuyan and Joymalya Bagchi, expressed shock at the scale of the fraud, noting that the reported ₹3,000 crore loss pertains only to India and global figures are unknown.
Solicitor General Tushar Mehta informed the court that the MHA has a dedicated unit to coordinate these cases. The court has requested a summary of the MHA and CBI reports to seek suggestions from the amicus curiae.
Previously, on October 27, the court had directed all states and Union Territories to provide data on digital arrest cases. Given the transnational nature of these crimes, the court hinted at consolidating all such cases under a single agency, preferably the CBI.
The suo motu proceedings were launched on October 17, with the court issuing notices to the Centre, CBI, and the Haryana government. The court’s concern stems from criminals using fake court orders and law enforcement impersonations to extort money, thereby undermining public trust in the justice system.
Mr. Mehta also pointed out a significant challenge: the use of artificial intelligence (AI) by fraudsters to create simulated courtroom environments during calls, often made through platforms like WhatsApp, making the origin of the calls untraceable. He further noted that criminals often operate from countries that do not have mutual legal assistance treaties with India.