‘Hit the mobile on the wall’: CJI Surya Kant's blunt remark on digital arrest scams

The Supreme Court on Thursday (Oct 29) expressed frustration over the continued rise of digital arrest scams, questioning why educated people were still falling victim to such fraud despite awareness campaigns and repeated court warnings. The bench also proposed holding banks accountable for compensating victims when failures in due diligence contribute to the fraud.

“Hit the mobile on the wall, and the arrest goes,” Chief Justice of India Surya Kant observed while hearing a suo motu case related to digital arrests and online scams. The bench also included Justices Joymalya Bagchi and V Mohana.

‘What is the fear of arrest on mobile?’

Senior advocate NS Nappinai, who is assisting the court as amicus curiae, said she continued to receive reports of people being duped despite efforts to curb digital arrest scams.

She told the bench that a woman had lost Rs 2.5 crore in such a scam last week.

“What is wrong with these victims? How are these victims being trapped like this? Can't they understand this basic thing? What's fear of arrest on mobile?” the bench asked.

Reacting to the incident, the CJI said, “We feel frustrated that all educated people are getting duped.

What will you pass on to the next generation if you get digitally arrested at this age? People can go to the court's website to find if there's an order.”

The bench also remarked, “You are victimising yourself,” questioning why people believed they could be arrested through a mobile phone.

Also Read: ‘People will celebrate’: Piyush Goyal says India will have ‘strong comparative advantage’ after US trade deal

SC proposes bank compensation and prosecution

The bench said banks should act as a “protective umbrella” for customers vulnerable to digital fraud. It indicated that financial institutions could be directed to compensate victims and face prosecution if lapses in due diligence enabled the scams.

“We are proposing to direct that wherever such fraud takes place, the bank will compensate the victim and suffer prosecution. It has to be done,” the CJI said.

The court also said victims should receive compensation for at least the amount they lost when the fraud could be linked to a financial institution's failure to carry out proper checks.

Attorney General R Venkataramani told the bench that digital arrest cases had declined by 50 per cent following the court's intervention. He added that banks were flagging suspicious transactions and that he had held meetings with the Reserve Bank of India (RBI) on framing rules to address the problem.

The bench asked the RBI to submit a list of all authorised financial institutions by the next hearing. It indicated that any directions could apply to all such institutions without requiring individual banks to be made parties to the case.