Supreme Court's Directive on Digital Arrests and Cyber Crime
The Supreme Court of India issued a comprehensive directive to curb digital arrest scams and enhance mechanisms for grievance redressal, involving stakeholders like the Centre, State governments, the Reserve Bank of India (RBI), and telecom authorities.
Key Statistics and Developments
- Complaints against digital arrests drastically decreased from 1,23,672 in 2024 to 16,377 by June 30, 2026.
- A data-sharing Memorandum of Understanding (MoU) between the Reserve Bank Innovation Hub and the Indian Cyber Crime Coordination Centre (I4C) was formalized on May 11, 2026.
- The grievance redressal portal now covers 1,23,590 branches across 69 banks.
- The Money Restoration Mechanism Portal involves 57 banks and is active across all 36 States and Union Territories, with ₹18.05 crore restored in 36,290 cases.
Mechanisms and Rules
- The e-Zero FIR mechanism is operational in 19 States, with 14 States notifying their Cyber Crime Coordination Centres.
- The Telecommunications (Radio Equipment Possession Authorisation) Rules, 2025 are notified, while the User Identification Rules are nearing completion.
Investigation and SOPs
- The Central Bureau of Investigation (CBI) registered 10 digital arrest cases, identifying 238 victims and ₹80 crore in transactions.
- The court directed the RBI to develop an SOP for banks to temporarily hold mule accounts linked to fraud, with the SOP shared with High Courts.
- States and Union Territories must create modules for grievance redressal and money restoration aligned with the Ministry of Home Affairs' SOP.
Future Directives
- Upcoming reports will detail State-wise and bank-wise grievances, restoration orders, and restored amounts.
- States are required to notify Cyber Crime Coordination Centres and operationalize e-Zero FIR mechanisms within four weeks.
- Rapid handling of cases involving bank account freezing due to cyber-enabled financial fraud is emphasized.
