New Delhi: To tackle the growing threat of “digital arrests,” the Ministry of Home Affairs (MHA) has informed the Supreme Court that it has set up a high-level inter-departmental committee (IDC) aimed at addressing systemic gaps and providing real-time protection for victims of cybercrime.

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.

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The bench also directed that the recommendations put forth by the Amicus Curiae be considered by the relevant authorities alongside the directives issued on December 1 last year.

In its status report filed on January 12, the Ministry of Home Affairs (MHA) outlined a coordinated multi-agency effort involving the CBI, RBI, Telecom Department, and key IT ministries to target transnational syndicates exploiting forged documents and “digital arrest” tactics to defraud unsuspecting citizens.

Following the court’s instructions, the report stated that the CBI has officially taken charge of a high-profile fraud case in Delhi, in which a 76-year-old widowed pensioner was allegedly cheated of Rs 1.64 crore. The victim was reportedly threatened by impersonators using fabricated documents in a classic “digital arrest” scam.

The CBI also 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.

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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. PTI