'Absolute robbery': SC on siphoning of over Rs 54,000 crore in digital arrest cases; asks Centre to frame SoP

NEW DELHI: The Supreme Court on Monday termed the siphoning of over Rs 54,000 crore through digital arrests as nothing short of “robbery or dacoity” and directed the Centre to formulate a standard operating procedure (SoP) to tackle such offences.A bench led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and NV Anjaria, noted that the money lost to digital fraud exceeds the annual budgets of several small states.“These offences may occur due to either collusion or negligence on the part of bank officials. This necessitates prompt action by the RBI and banks,” the bench observed, according to PTI.The top court pointed out that the Reserve Bank of India has already framed an SoP requiring banks to temporarily block debit cards to prevent cyber-enabled fraud. It directed the Ministry of Home Affairs (MHA) to examine the RBI’s SoP, along with similar protocols or decisions taken by the Department of Telecom (DoT), and prepare a draft memorandum of understanding (MoU) within four weeks to effectively address such crimes.The bench also instructed the CBI to identify cases involving digital arrests and directed the Gujarat and Delhi governments to grant sanction to the agency to proceed with investigations in these matters.Further, the Supreme Court asked the RBI, DoT, and other stakeholders to hold a joint meeting and develop a framework for compensating victims of digital arrest scams. Emphasising the need for a “pragmatic and liberal approach” in awarding compensation, the court posted the matter for further hearing after four weeks and asked authorities to submit fresh status reports before the next date.Earlier, on December 16 last year, the bench had asked the Centre to consider suggestions made by the amicus curiae on ensuring compensation for victims, while expressing concern over the massive sums siphoned out of the country by cybercriminals. On December 1, it had directed the CBI to conduct a unified pan-India probe into digital arrest cases and questioned the RBI on why artificial intelligence was not being used to trace and freeze bank accounts linked to such crimes.Digital arrest is an emerging form of cybercrime in which fraudsters impersonate law-enforcement officials, court authorities, or government personnel to intimidate victims through audio or video calls, hold them virtually hostage, and coerce them into transferring money.