SC directs SOPs, time-bound refunds to tackle 'digital arrest' scams
The Supreme Court on Tuesday directed the Centre, state governments, the Reserve Bank of India (RBI) and telecom authorities to formulate standard operating procedures (SOPs) to curb the rising menace of “digital arrest” scams. The court also ordered the operationalisation of mechanisms for grievance redressal, criminal action through zero FIRs against cyber fraudsters, and time-bound restoration of money lost by victims.
Digital arrest refers to a scam where fraudsters pose as police or other officials over video calls and extort money from victims. The court was hearing a matter pertaining to this issue and took note of a status report filed by the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs.
According to the report, complaints against digital arrests dropped substantially from 1,23,672 in 2024 to 58,249 in 2025, and further to 16,377 in the period ending June 30, 2026. However, the court said it was essential to continue monitoring the situation.
The court noted the data-sharing memorandum of understanding between the RBI Innovation Hub and I4C, executed on May 11, 2026. It also observed that the grievance redressal mechanism portal now covers 1,23,590 branches of 69 banks. Additionally, the Money Restoration Mechanism Portal has 57 participating banks and covers all 36 states and Union Territories, with restoration completed in 36,290 cases involving an aggregate amount of ₹18.05 crore.
The court further noted that the e-Zero FIR mechanism is functional in 19 states, while only 14 states have notified their State Cyber Crime Coordination Centres. It also mentioned that the Telecommunications (Radio Equipment Possession Authorisation) Rules, 2025 have been notified, while the Telecommunications (User Identification) Rules, 2025 is in the final stage of notification.
On the CBI’s investigation, the court said the agency has registered 10 digital arrest cases and several connected cases. In one investigation, the CBI identified 238 victims, 67 first-layer bank accounts, and transactions of approximately ₹80 crore, and conducted searches at 93 locations across 16 states.
The court recorded the suggestion of the Inter-Departmental Committee that the CBI take up cases involving amounts lower than the existing ₹10-crore threshold. It directed the RBI to prepare and circulate an SOP to deal with mule accounts and those linked to money laundering and cyber-enabled fraud.
States and Union Territories were asked to frame modules for grievance redressal and money restoration in line with the Ministry of Home Affairs’ SOP on the National Cyber Crime Reporting Portal and Cyber RMS, dated January 2, 2026. The court also directed states to notify Cyber Crime Coordination Centres and operationalise the e-Zero FIR mechanism within four weeks.
Further, the court said the next status report should include state-wise and bank-wise details of grievances registered and disposed of, summary restoration orders issued, summary restorations completed, and amounts restored. It also said cases involving freezing of bank accounts arising out of cyber-enabled financial frauds should be dealt with expeditiously.
