Centre forms high-level panel to tackle ‘digital arrest’ scams after push from Supreme Court

Following directions issued by the Supreme Court in a suo motu case regarding so-called ‘digital arrest’ scams, the Ministry of Home Affairs (MHA) has set up a high-level Inter-Departmental Committee to carefully review all issues connected with such scams. The Committee is chaired by the Special Secretary (Internal Security), MHA, and includes senior officers at the level of Joint Secretary and above from key ministries and agencies, including the Ministry of Electronics and Information Technology (MeitY), Department of Telecommunications (DoT), Ministry of External Affairs (MEA), Department of Financial Services, Ministry of Law and Justice, Ministry of Consumer Affairs, the Reserve Bank of India (RBI), Central Bureau of Investigation (CBI), National Investigation Agency (NIA), Delhi Police, and the Indian Cyber Crime Coordination Centre (I4C).

The Chief Executive Officer of I4C will function as the Member-Secretary, while the Chairperson may invite subject-matter experts as required. The Committee is expected to convene once every fortnight, with Attorney General R. Venkataramani also participating in the proceedings. Its mandate includes assessing operational challenges faced by enforcement agencies, reviewing recommendations made by the Amicus Curiae along with the Supreme Court’s directions, mapping existing legal and regulatory frameworks, identifying gaps in implementation, and proposing remedial measures along with inputs for future judicial directions.

According to a status report submitted by the MHA to the Supreme Court, the Committee held its inaugural meeting on December 29. During the meeting, the CBI proposed setting a financial threshold for digital fraud cases; cases exceeding the threshold could be investigated by the CBI, while smaller cases may be handled by State or Union Territory agencies with support from the MHA.

Also Read: Parents of J&K students in Iran urge govt to help in evacuation, ensure safety

The RBI informed the Committee that it has already issued advisories to banks on deploying artificial intelligence-based systems for fraud detection. It also stated that a Standard Operating Procedure (SOP) for freezing bank accounts linked to suspicious transactions is in the advanced stages of finalisation. MeitY stressed the urgent need to operationalize and strengthen the adjudication framework under Section 46 of the Information Technology Act, 2000. Meanwhile, the DoT indicated that draft rules under the Telecommunications Act, 2023, have been prepared and are currently undergoing stakeholder consultations. Once notified, these rules are expected to address issues such as careless issuance of SIM cards and multiple connections being issued to a single individual.

The I4C highlighted ongoing initiatives to reduce response times and improve coordination with banks and law enforcement agencies to ensure prompt freezing of illicit funds. It also shared that SOPs covering immediate freezing, unfreezing, recovery, and restitution of funds to victims are awaiting approval by the competent authority. Upgrades to the National Cybercrime Reporting Portal (NCRP) and the 1930 cybercrime helpline are also under active consideration.

The Committee also deliberated on the Amicus’s recommendations related to victim compensation. It concurred that accountability must be fixed where losses arise due to negligence, service deficiencies, or fraudulent conduct by banks, telecom service providers, or other regulated entities. It was noted that victims should not bear the consequences of systemic lapses or regulatory violations, and that compensation mechanisms must operate independently of other legal remedies.

Consequently, the Committee Chair directed the RBI, DoT, and MeitY to review existing frameworks and propose

enhancements to ensure effective enforcement. The MHA has requested at least one month from the Supreme Court to allow the Committee to conduct further deliberations and submit its inputs. The case is scheduled for the next hearing on January 20.