MHA Forms Panel to Tackle Digital Arrests; CBI Investigates Rs 1.64 Crore Fraud

PTI, NEW DELHI, FEB 9, 2026: 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, had ordered inter-departmental ministerial consultations under the guidance of Attorney General R. Venkataramani and was apprised of the outcome. The status report filed by the MHA on January 12 detailed a multi-agency initiative 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 in Delhi, where a 76-year-old widowed pensioner was allegedly duped of Rs 1.64 crore through a "digital arrest" scam. In this scheme, the victim was threatened by impersonators using fake documents. The CBI informed the court that such scams are often perpetrated by "organised and transnational cybercrime syndicates" and that the agency is now using INTERPOL channels to dismantle international modules.

The MHA has established the IDC under the chairmanship of the Special Secretary (Internal Security), tasked with identifying legislative gaps, suggesting corrective measures, and ensuring "time-bound compliance" across the banking and telecom sectors. The Department of Telecommunications (DoT) reported significant progress in curbing "spoofed" calls, i.e., calls appearing as Indian numbers though originating from foreign locations. Through the Central International Out Roamer (CIOR) mechanism, the government successfully blocked approximately 13.5 million spoofed calls in October 2024, reducing the current volume to roughly 150,000 calls. The DoT is finalising rules under the Telecommunications Act, 2023, to regulate negligent issuance of SIM cards, enforce the 9-SIM-per-person cap, and control 'SIM Boxes' used by fraudsters.

The RBI informed the IDC that 23 banks have implemented "MuleHunter AI," a specialised tool to detect "mule accounts" used by criminals to launder stolen money. The panel also discussed key banking reforms, including mandatory "cooling-off" periods and delayed processing of suspicious transactions to preserve the "golden hour" for law enforcement. Proactive freezing of defrauded amounts before funds are moved was also highlighted.

The court-appointed amicus curiae, senior advocate N.S. Nappinai, proposed a landmark shift in victim relief, suggesting that frozen proceeds could be released to victims based on portal complaints and indemnity bonds, without requiring formal FIR registration in all cases. The amicus also recommended that platforms like WhatsApp and Telegram limit the duration of video calls from unknown numbers to prevent prolonged coercion.