MHA forms inter-ministerial panel to deal digital arrests; CBI takes over Rs 1.64 crore fraud probe

New Delhi: In a bid to crack down on the rising menace of "digital arrests", the Ministry of Home Affairs (MHA) has informed the Supreme Court that it has constituted a high-level inter-departmental committee (IDC) to eliminate systemic gaps and ensure real-time protection for cybercrime victims.

A bench headed by Chief Justice Surya Kant on December 16, 2025 ordered inter-departmental ministerial consultations under the guidance of Attorney General R Venkataramani on the issue and apprised it of the outcome.

The bench further directed that the recommendations made by the Amicus Curiae should also be considered by the concerned quarters alongside the directions already issued on December 1 last year.

The status report filed by the MHA on January 12 detailed a multi-agency offensive involving the CBI, RBI, Telecom Department and top IT ministries to dismantle transnational syndicates using forged documents and "digital arrest" tactics to siphon funds from innocent citizens.

Acting on the directions of the bench, the report said the CBI has officially taken over the investigation into a high-profile fraud case of Delhi where the victim, a 76-year-old widowed pensioner, was allegedly duped of Rs 1.64 crore through a "digital arrest" scam where she was threatened by impersonators using fake documents.

The CBI informed the court that these scams are often perpetrated by "organised and transnational cybercrime syndicates" and that the agency is now utilising INTERPOL channels to dismantle international modules. The MHA has established an IDC under the chairmanship of the special secretary (internal security).

The panel includes joint secretary-level officers from the Ministry of Electronics and Information Technology (MeitY), Department of Telecommunications (DoT), Reserve Bank of India (RBI), Ministry of External Affairs (MEA) and Indian Cyber Crime Coordination Centre.

It said the committee is mandated to identify legislative gaps, suggest corrective measures and ensure "time-bound compliance" across the banking and telecom sectors.

The DoT reported significant progress in curbing "spoofed" calls (calls from foreign locations appearing as Indian numbers), it said.

Through the newly introduced Central International Out Roamer (CIOR) mechanism, the government successfully blocked approximately 1.35 crore spoofed calls in October 2024 alone, bringing the current volume down to roughly 1.5 lakh calls.

Furthermore, it said the DoT is finalising rules under the Telecommunications Act, 2023, to address negligent issuance of SIM cards by point-of-sale (PoS) agents and enforcement of the 9-SIM-per-person cap and the regulation of 'SIM Boxes' used by fraudsters.

The RBI informed the IDC that 23 banks have already implemented "MuleHunter AI", a specialised tool to detect "mule accounts" used by criminals to launder stolen money.

The panel also discussed key banking reforms like mandatory "cooling-off" periods and a delay mechanism for suspicious transactions to preserve the "golden hour" for law enforcement.

It also referred to proactive freezing of the defrauded amount by using Section 12AA of the Prevention of Money Laundering Act (PMLA) before funds are moved.

It also discussed putting in place standard operating procedures (SOPs) for ensuring uniform guidelines for banks to identify and close dormant accounts.

The court-appointed amicus curiae, senior advocate N S Nappinai, has proposed a landmark shift in victim relief and suggested that releasing frozen proceeds to victims based on portal complaints and indemnity bonds, without mandating a formal FIR registration in all cases.

The amicus also suggests that platforms like WhatsApp and Telegram limit the duration of video calls from unknown numbers to prevent prolonged coercion.

The government has requested a one-month extension from the Supreme Court to consolidate inputs from all stakeholders.

The committee's next focus will be on strengthening the "Adjudication Mechanism" under Section 46 of the IT Act and finalising a national online portal for cybercrime adjudication.

"In view of the foregoing facts and circumstances, it is most respectfully prayed that this Hon'ble Court may be pleased to grant a period of at least one month to enable the respondents to obtain inputs from the remaining members of the Inter-Departmental Committee and to undertake further 4 deliberations thereon, so as to place a consolidated and considered outcome before this Hon’ble Court," the MHA said in its status report.