Supreme Court Suggests Compensation For Victims Of Digital Arrest Scams, Asks Centre To Discuss With Stakeholders

A bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi was hearing the suo motu case taken by it on the issue.

Senior Advocate NS Nappinai, the amicus curiae in the matter, submitted a suggestion of having a victim compensation scheme on the lines of the UK's model for Authorised Push Payment scams, which ensures mandatory reimbursement of victims through the intervention of the banking channel.

The CJI also added that there was a need for automatic systems for alarming the banks when such fraudulent transactions occur. 

AG R Venkataramani, appearing for the Union, submitted that the CBI has given certain inputs and has suggested an inter-departmental meeting for considering the suggestions by the Amicus. 

Considering the same, the bench passed the following order : 

"We have no reason to doubt that all stakeholders will, under the guidance of the AG, shall take appropriate decisions at their end and apprise this Court. The recommendations by the Amicus may also be considered by the concerned quarters."

Previously, the bench ordered the CBI to investigate the instances of digital arrest scams.

The Court is primarily focusing on digital arrest scams. Other categories of cybercrime may be considered later, depending on their impact and the need for further intervention.

Case no. – SMW (Crl.) 3/2025

Case Title: In Re: Victims of Digital Arrest Related to Forged Documents, SMW (Crl.) 3/2025