India’s response to rising “digital arrest” scams is set to tighten as a high-level committee under the Ministry of Home Affairs has recommended fixing responsibility on banks and telecom companies when victims suffer losses due to negligence or service lapses. The panel was formed following directions of the Supreme Court in a suo motu case and held its first meeting on December 29. The matter is scheduled for hearing on January 20.
The inter departmental committee is chaired by the Special Secretary for Internal Security and includes Joint Secretary level officials from MeitY, DoT, MEA, Department of Financial Services, Ministry of Law and Justice, Ministry of Consumer Affairs, RBI, CBI, NIA, Delhi Police and I4C. The CEO of I4C serves as Member Secretary, while Attorney General R Venkataramani attends meetings held every 2 weeks. The panel is examining enforcement gaps, victim compensation frameworks and legal issues including provisions under Section 46 of the IT Act 2000.
A key outcome of the discussions is a unanimous view that banks, telecom service providers and other regulated entities must be held liable if losses occur due to negligence, fraud or deficiencies in service. The committee stressed that victim compensation should be ensured without affecting other legal remedies. The RBI has already issued advisories to banks on AI based fraud detection and is finalising standard operating procedures for freezing suspicious accounts. The DoT has also proposed draft rules to address negligent SIM issuance and misuse of multiple SIMs by a single individual. The CBI suggested setting a monetary threshold so that high value cases are handled centrally while smaller cases continue with state agencies.
The Supreme Court had taken suo motu cognisance of “digital arrest” scams registered as SMW Crl 3 2025, directing CBI probes and coordination among ministries. The MHA has submitted a status report detailing the first meeting and has sought a one-month extension to continue deliberations. Recommendations by the Amicus Curiae on victim support are under active review along with inputs from enforcement agencies.
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