New Delhi: The Supreme Court on Monday described the ₹54,000 crore digital fraud reported across the country as nothing short of “robbery and plunder”, observing that the amount involved is more than the annual budgets of several small Indian states. The court directed the Central Government to frame comprehensive guidelines to tackle the growing menace of digital fraud and ensure compensation for victims.
Bench Flags Possible Collusion or Negligence of Bank Officials
A bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice N.V. Anjaria observed that such massive financial crimes could not have occurred without either collusion or gross negligence on the part of bank officials.
The court said the scale and sophistication of these crimes raise serious questions about systemic failures in banking and regulatory mechanisms.
RBI, DoT, Banks Asked to Frame Compensation Mechanism
The Supreme Court directed the Reserve Bank of India (RBI), the Department of Telecommunications (DoT), and banks to jointly develop a framework for compensating victims of digital fraud.
Additionally, the court ordered the Union Ministry of Home Affairs to:
- Examine existing RBI and DoT regulations
- Prepare a draft compensation framework within four weeks
- The next hearing in the matter has been scheduled four weeks later.
- CBI Handed Over Probe; Gujarat and Delhi Directed to Grant Approval
The court has already handed over the investigation of the digital fraud cases to the Central Bureau of Investigation (CBI). It also directed the Gujarat and Delhi governments to grant the necessary approvals for a CBI probe.
The court underlined the need for a centralised investigation, given the nationwide and cross-border nature of the frauds.
December 16, 2025: SC Stressed Compensation for Victims
During the previous hearing on December 16, 2025, the Supreme Court had explicitly stated that victims of digital fraud must be compensated. The court was hearing cases related to online frauds such as digital arrests, where victims are coerced through fake legal proceedings.
Suo Motu Case Based on Complaint of Elderly Haryana Couple
The Supreme Court had taken suo motu cognisance of a complaint filed by an elderly couple from Haryana, who alleged that fraudsters posing as police officers and court officials had digitally arrested them and siphoned off their entire savings.
Expressing grave concern, the court noted that such crimes involve:
- Misuse of judiciary’s name
- Fake court seals and orders
- Impersonation of judges and police officers
The court said these offences strike directly at public trust in the justice system, making them far more serious than routine cyber fraud.
Gangs Operating from Abroad, Interpol Help Sought
The Supreme Court observed that many cyber fraud gangs:
- Operate from foreign jurisdictions or tax havens
- Transfer money out of India through complex digital routes
It directed the CBI to seek assistance from Interpol to trace and dismantle such networks.
IT Intermediaries Directed to Assist Investigation
The court also made it clear that IT intermediaries, including:
- Social media platforms
- Messaging applications
- Other online service providers
must provide complete information and technical assistance to the CBI. This cooperation, the court said, is crucial to identify and apprehend gangs using digital platforms to defraud citizens.
Supreme Court Calls for Nationwide Crackdown
Since taking suo motu cognisance, the Supreme Court has repeatedly emphasised the need for strict nationwide action against:
- Digital arrest scams
- Fake court orders
- Misuse of judges’ names and identities
The court reiterated that unchecked digital fraud poses a serious threat to financial security, institutional credibility, and public confidence.
