SC mandates SOPs, mechanisms to curb ‘digital arrests’, facilitate time-bound refunds

Published 4 August 2026 · india

The Supreme Court on Tuesday (August 4, 2026) passed a detailed order directing the Centre, States, the Reserve Bank of India and telecom authorities to

The Supreme Court on Tuesday (August 4, 2026) passed a detailed order directing the Centre, States, the Reserve Bank of India and telecom authorities to prepare a standard operating procedures (SOPs) to curb "digital arrests" scams and operationalise mechanisms to redress grievances of victims, initiate criminal action through zero FIRs against cyber fraudsters, and restore the monetary losses of those defrauded in a time-bound manner. The court referred to a status report submitted by the Indian Cyber Crime Coordination Centre (I4C) under the Ministry of Home Affairs, which said the complaints against digital arrests had substantially reduced from 1,23,672 in 2024 to 58,249 in 2025, and further reduced to 16,377 during the period ending June 30, 2026.

However, the court said it was essential to continue to monitor the situation. “As per the fourth status report, a data-sharing MoU between the Reserve Bank Innovation Hub and I4C was executed on May 11, 2026. The grievance redressal mechanism portal now covers 1,23,590 branches of 69 banks. Additionally, the Money Restoration Mechanism Portal has 57 participating banks and covers all 36 States and Union Territories, with restoration completed in 36,290 cases, involving an aggregate amount of ₹18.05 crore,” the court noted. The court said the e-Zero FIR mechanism was functional in 19 States, while only 14 States had notified their State Cyber Crime Coordination Centres. Similarly, the Telecommunications (Radio Equipment Possession Authorisation) Rules, 2025 had been notified, while the Telecommunications (User Identification) Rules, 2025 was at the final stage of notification.

“As far as the CBI’s investigation is concerned, the report reveals that the agency has presently registered 10 digital arrest cases and several connected cases. In one investigation, it identified 238 victims, 67 first-layer bank accounts, transactions of approximately ₹80 crore, and conducted searches at 93 locations across 16 States,” the court said. The Bench recorded the suggestion made by the Inter-Departmental Committee that the CBI take up cases involving amounts lower than the ₹10-crore threshold. The court directed the RBI to prepare and circulate a Standard Operating Procedure (SOP) to deal with mule accounts and those linked to money laundering and cyber-enabled fraud. States and Union Territories were asked to frame modules for grievance redressal and money restoration as per the Ministry of Home Affairs’ SOP concerning the Cyber Crime Reporting Portal and Cyber RMS, dated January 2, 2026.