Supreme Court pushes Centre to define 'digital arrest' as standalone crime with tougher punishment amid rising deepfakes, frauds & fake calls

The Supreme Court on Tuesday suggested that the Centre consider introducing a separate legal definition for ‘digital arrest’ in India’s penal laws and making it a standalone criminal offence with stricter punishments to tackle the growing menace of cyber fraud.

Hearing a matter related to cyber-enabled financial frauds, a Bench headed by Chief Justice of India (CJI) Surya Kant, along with Justices Joymalya Bagchi and V Mohan, observed that existing laws may not be sufficient to address evolving online crimes such as digital arrests and deepfakes.

The court also indicated that the assets of accused persons could be frozen once a prima facie case is established based on reasoned evidence.

What did the Supreme Court say on digital arrests?

The Bench suggested that the Centre formally recognise digital arrests as a distinct offence under criminal law.

“You may need to formally define ‘digital arrests’ in penal laws. It also has elements of extortion and robbery. Perhaps, you need to define this as a standalone offence with serious consequences, along with a provision that when something is found against an accused, his assets could be frozen,” CJI Surya Kant observed, as quoted by PTI.

The court’s observations come amid a sharp rise in cyber scams in which fraudsters impersonate police officers, investigating agencies, court officials or government personnel through video and audio calls to intimidate victims into transferring money.

Supreme Court flags growing threat of deepfakes

The Bench also highlighted the increasing misuse of deepfake technology, saying that laws need to evolve to tackle emerging cyber threats.

“We now have deepfakes. It can be used for cheating and impersonation. You fight with the given tooth, but you need to chisel it as well. Under Article 142, we cannot define a crime,” Justice Joymalya Bagchi said, as quoted by PTI.

The court emphasised that while it can issue directions, creating new criminal offences remains the responsibility of Parliament.

Centre says draft law on digital arrests and deepfakes is being prepared

Responding to the court’s observations, Solicitor General Tushar Mehta informed the Bench that the government is already working on legislation covering digital arrests, deepfakes and other emerging cybercrimes.

“There is a draft Bill which is coming up. Possibly it will take care of digital arrests, deepfakes etc. and other online crimes,” Mehta told the court, as quoted by PTI.

Attorney General R Venkataramani also informed the Bench that an Inter-Departmental Committee (IDC) is finalising a comprehensive report to identify systemic gaps and recommend legal and administrative reforms.

Government seeks stronger banking safeguards against cyber fraud

During the hearing, the Attorney General sought several directions from the court to strengthen the country’s response to cyber-enabled financial fraud.

He urged the court to direct the Reserve Bank of India (RBI) to formally adopt and implement a Standard Operating Procedure (SOP) allowing banks to temporarily place debit restrictions on accounts suspected to be mule accounts used in cyber fraud.

The Centre also sought directions for all states, Union Territories and law enforcement agencies to quickly operationalise grievance redressal and money restoration mechanisms, while ensuring speedy disposal of cases involving the freezing of bank accounts linked to cyber fraud.

The Supreme Court said it would issue further directions on Wednesday.

CBI investigating major digital arrest fraud cases

The Attorney General informed the court that the Central Bureau of Investigation (CBI) is currently probing around 20 major digital fraud cases involving losses exceeding Rs 10 crore, while state police forces are investigating other cases.

Earlier this year, the Ministry of Home Affairs (MHA) informed the apex court that it had constituted a high-level Inter-Departmental Committee to address systemic gaps and strengthen real-time protection for cybercrime victims.

The committee was formed following the Supreme Court’s December 2025 directions for inter-ministerial consultations under the supervision of the Attorney General.

Delhi widow’s Rs 1.64 crore digital arrest case under CBI probe

The MHA also informed the court that the CBI has taken over the investigation into a high-profile Delhi digital arrest scam, in which a 76-year-old widowed pensioner allegedly lost Rs 1.64 crore after fraudsters posing as officials threatened her using forged documents.

According to the CBI, such scams are increasingly being orchestrated by organised transnational cybercrime syndicates. The agency is now using INTERPOL channels to trace international networks and dismantle overseas modules.

What is a digital arrest?

A digital arrest is a form of cyber fraud in which criminals impersonate police officers, CBI officials, Enforcement Directorate personnel, judges or other government authorities through phone or video calls. Victims are falsely told that they are under investigation or have been “digitally arrested” and are pressured into transferring money or sharing sensitive financial information.

Inputs from agencies