The Supreme Court on Monday transferred the investigation into the nationwide “digital arrest” scam to the Central Bureau of Investigation, citing the magnitude, complexity and cross-border nature of the cyber fraud that has targeted victims across multiple states, particularly senior citizens.
A bench led by Chief Justice of India Surya Kant directed that the CBI would act as the first and primary investigating agency for all cases linked to the scam, which involves fraudsters posing as law enforcement or government officials, coercing victims into staged online “arrests” and extracting large sums of money through fear and deception. The court observed that the expanding footprint of the fraud demanded a centralised and coordinated investigation.
In a significant step, the court authorised the CBI to invoke provisions of the Prevention of Corruption Act to examine the possible role of bankers who facilitated the opening and operation of accounts used to channel proceeds of the crime. The bench indicated that accountability would not be limited to direct perpetrators, but would extend to systemic enablers who allowed fraudulent financial flows to continue unchecked.
The court also issued notice to the Reserve Bank of India, making it a party to the ongoing suo motu proceedings. The RBI has been asked to assist the court in determining realistic timelines for deploying Artificial Intelligence and Machine Learning tools capable of identifying suspicious banking patterns, flagging mule accounts and automatically freezing suspected proceeds of cybercrime.
To ensure seamless investigation, the bench directed that all authorities must comply with CBI requisitions made under the Information Technology Intermediary Rules, 2021. It further ordered states that have not granted general consent to the CBI to allow the agency to investigate cases registered under the IT Act within their jurisdictions, noting that lack of cooperation could hamper nationwide operations against organised cybercrime networks.
Recognising the transnational elements often involved in large-scale cyber fraud, the court permitted the CBI to seek assistance from Interpol wherever required. It also instructed the Department of Telecommunications to submit a proposal on regulating the issuance of SIM cards, including stricter norms for multiple SIMs issued under a single identity, which the court said remains a key vulnerability exploited by fraudsters.
The bench directed state governments to speed up the establishment of cybercrime centres and to flag any administrative or logistical bottlenecks that may be delaying operational readiness. Emphasis was placed on the preservation of digital evidence, with directions that mobile phone data from all devices seized in cybercrime-related FIRs must be safeguarded without delay.
All states and Union Territories have been instructed to transfer FIRs registered under the IT Act, 2021, related specifically to the digital arrest scam, to the CBI to enable consolidated investigation. The court noted that after it took suo motu cognisance of the issue, several victims approached the judiciary and multiple FIRs were filed across states, underscoring the widespread and coordinated nature of the fraud.
The bench observed that the seriousness of the offence was evident from the consistent targeting of senior citizens, who were subjected to psychological pressure, intimidation and financial exploitation. It stressed that while all cyber offences warrant detailed investigation, the digital arrest scam required urgent intervention by the country’s premier investigating agency given its scale and evolving methods.
The matter has been listed for further hearing after two weeks, during which progress on coordination, regulatory proposals and investigative steps is expected to be reviewed by the court.
