'Absolute' robbery: Indian Supreme Court slams banks over Rs520-billion digital fraud
The Indian Supreme Court lashed out at the serious lapses of some banks and possible collusion by some officials in swindling the public through so-called ‘digital arrests.’ It described the siphoning of over Rs520 billion (Dh21 billion) by scammers from April 2021 to November 2025 as “absolute robbery or dacoity.”“We have seen bank officials are completely hand in glove with the accused in these cases of digital arrests,” Surya Kant, the chief justice of India, said while hearing a suo motu (the action initiated by the court on its own) case. “These banks are becoming a liability. Banks should know that they are trustees of the money, and they should not get overexcited with it. That trust should not be broken. The problem is these banks give loans to these fraudsters, and then the NCLT, NCLAT (National Company Law Tribunal and the National Company Law Appellate Tribunal) come into the picture when the fraudulent companies become involved in insolvency disputes.”Stay up to date with the latest news. Follow KT on WhatsApp Channels.Thousands of Indians, especially senior citizens, across the country have been targeted by gangs who inform them they are under ‘digital arrest’ in relation to a drug smuggling case where their names have been mentioned. The gangsters, posing as top police and security officials, exploit the senior citizens and dupe them of millions of rupees by accessing their bank accounts through fraudulent schemes.After a senior-citizen couple wrote to the Supreme Court in October last year, informing it of how they were cheated of Rs15 million (about Dh607,000) by fraudsters who posed as officials of investigative agencies and the judiciary. The court directed the Central Bureau of Investigation (CBI) to investigate such cases. It also ordered the finalisation of an MoU within four weeks and asked the Ministry of Home Affairs to roll out a standard operating procedure (SOP) issued by the RBI last month. “The RBI has crafted an SOP prescribing action by banks, whereby temporary debit holds can be placed to prevent cyber-enabled frauds. We direct the Union Ministry of Home Affairs to formally adopt and implement the SOP dated January 2, 2026, and that it be implemented across India for inter-agency coordination, location of defrauded parties, etc. Let rules be notified within two weeks,” the court ordered.BlueChip scam: Founder faces fresh remand as police recover crypto trail from phoneOver 60% of financial attacks starts with stolen login details: UAE Cyber Security Council Major UAE bank warns of fraudsters posing as senior executives
The Indian Supreme Court lashed out at the serious lapses of some banks and possible collusion by some officials in swindling the public through so-called ‘digital arrests.’ It described the siphoning of over Rs520 billion (Dh21 billion) by scammers from April 2021 to November 2025 as “absolute robbery or dacoity.”
“We have seen bank officials are completely hand in glove with the accused in these cases of digital arrests,” Surya Kant, the chief justice of India, said while hearing a suo motu (the action initiated by the court on its own) case.
“These banks are becoming a liability. Banks should know that they are trustees of the money, and they should not get overexcited with it. That trust should not be broken. The problem is these banks give loans to these fraudsters, and then the NCLT, NCLAT (National Company Law Tribunal and the National Company Law Appellate Tribunal) come into the picture when the fraudulent companies become involved in insolvency disputes.”
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Thousands of Indians, especially senior citizens, across the country have been targeted by gangs who inform them they are under ‘digital arrest’ in relation to a drug smuggling case where their names have been mentioned.
The gangsters, posing as top police and security officials, exploit the senior citizens and dupe them of millions of rupees by accessing their bank accounts through fraudulent schemes.
After a senior-citizen couple wrote to the Supreme Court in October last year, informing it of how they were cheated of Rs15 million (about Dh607,000) by fraudsters who posed as officials of investigative agencies and the judiciary.
The court directed the Central Bureau of Investigation (CBI) to investigate such cases. It also ordered the finalisation of an MoU within four weeks and asked the Ministry of Home Affairs to roll out a standard operating procedure (SOP) issued by the RBI last month.
“The RBI has crafted an SOP prescribing action by banks, whereby temporary debit holds can be placed to prevent cyber-enabled frauds. We direct the Union Ministry of Home Affairs to formally adopt and implement the SOP dated January 2, 2026, and that it be implemented across India for inter-agency coordination, location of defrauded parties, etc. Let rules be notified within two weeks,” the court ordered.
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