Supreme Court Cyber Fraud SOP: Massive ₹54,000 Crore Loss Under Scanner

Internet News: As per news available on the internet, the Supreme Court has expressed strong concern over large-scale cyber fraud amounting to over ₹54,000 crore, terming it “robbery and theft,” and has directed the Centre to frame a comprehensive Standard Operating Procedure (SOP) within four weeks to tackle digital scams in coordination with key regulatory and enforcement agencies.

Supreme Court’s sharp observations on digital scams

A Bench comprising Chief Justice Surya Kant, Justice Jomalya Bagchi, and Justice NV Anjaria observed that the amount siphoned off through cyber fraud exceeds the annual budgets of several small states. The Court remarked that such massive financial crimes point to serious systemic failures and may involve collusion or negligence on the part of bank officials.

Directions to Centre, RBI, Banks and DoT

The Supreme Court directed the Union government to formulate a robust SOP framework within four weeks, in consultation with the Reserve Bank of India (RBI), banks, and the Department of Telecommunications (DoT). It also asked the Ministry of Home Affairs to draft a memorandum of understanding (MoU), incorporating the SOPs and suggestions put forth by the RBI and DoT.

Role of RBI and preventive measures

The Court took note of the RBI’s existing SOP that empowers banks to temporarily suspend debit cards to prevent cyber-based fraud. It underlined the need for swift and coordinated action by banks and regulators to curb the growing menace of digital scams.

CBI probes and ‘Digital Arrest’ cases

The Bench directed the Central Bureau of Investigation (CBI) to identify cases involving so-called “digital arrests” linked to cyber fraud. It further requested the Gujarat and Delhi governments to grant permission for the CBI to proceed with investigations in the identified cases.

Compensation framework for victims

Highlighting the plight of victims, the Court instructed the RBI, DoT, and other stakeholders to jointly hold a meeting to formulate a framework for compensation in digital arrest and cyber fraud cases. It stressed that a practical and liberal approach must be adopted while granting compensation to affected individuals.

Next hearing in four weeks

The Supreme Court stated that the matter will be taken up again after four weeks and directed all concerned authorities to submit a fresh status report ahead of the next hearing, signaling close judicial monitoring of the issue.