In a move aimed at strengthening the fight against rising cyber fraud, the Ministry of Home Affairs (MHA) has constituted a high-level Inter-Departmental Committee to examine issues linked to so-called ‘digital arrest’ scams.
The decision follows directions issued by the Supreme Court in a suo motu case on such frauds. The Committee is chaired by the Special Secretary (Internal Security), MHA, and includes senior officers at the level of Joint Secretary and above from multiple ministries and agencies. These include the Ministry of Electronics and Information Technology, Department of Telecommunications, Ministry of External Affairs, Department of Financial Services, Ministry of Law and Justice, Ministry of Consumer Affairs, the Reserve Bank of India, the Central Bureau of Investigation, the National Investigation Agency, Delhi Police, and the Indian Cyber Crime Coordination Centre.
The Chief Executive Officer of the Indian Cyber Crime Coordination Centre will serve as the Member-Secretary. The Chairperson may also invite subject-matter experts when required. The Committee is expected to meet once every fortnight, with Attorney General R. Venkataramani participating in the discussions.
Its mandate covers reviewing operational challenges faced by enforcement agencies, examining recommendations of the Amicus Curiae along with Supreme Court directions, mapping existing legal and regulatory frameworks, identifying gaps in implementation, and suggesting corrective measures and inputs for future judicial directions.
According to a status report submitted to the Supreme Court, the Committee held its first meeting on December 29. During this meeting, the CBI proposed setting a financial threshold for digital fraud cases. Cases above this threshold could be probed by the CBI, while smaller cases may be investigated by State or Union Territory agencies with support from the MHA.
The RBI informed the Committee that advisories have already been issued to banks on using AI-based systems for fraud detection. It also said that a Standard Operating Procedure for freezing bank accounts linked to suspicious transactions is at an advanced stage of finalisation.
The Ministry of Electronics and Information Technology underlined the need to operationalise and strengthen the adjudication framework under Section 46 of the Information Technology Act, 2000. The Department of Telecommunications said draft rules under the Telecommunications Act, 2023, have been prepared and are under stakeholder consultation. Once notified, these are expected to address issues such as careless SIM issuance and multiple connections to a single user.
The Indian Cyber Crime Coordination Centre shared updates on steps to reduce response times and improve coordination with banks and law enforcement for faster freezing of illegal funds. Proposed SOPs on freezing, unfreezing, recovery, and restitution of funds are awaiting approval, while upgrades to the National Cybercrime Reporting Portal and the 1930 helpline are under consideration.
The Committee also agreed that accountability must be fixed where losses result from negligence or service failures by banks, telecom operators, or other regulated entities. It noted that victims should not suffer due to systemic lapses and that compensation should function independently of other legal remedies.
The Chair has directed the RBI, DoT, and MeitY to review existing frameworks and suggest improvements. The MHA has sought at least 1 month from the Supreme Court to submit further inputs. The next hearing is scheduled for January 20.
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