Delhi High Court Issues Notice On PIL Seeking Comprehensive Guidelines To Prevent UPI Frauds, Faster Recovery For Victims

The Delhi High Court has issued notice on a Public Interest Litigation (PIL) seeking framing of comprehensive guidelines to curb rising frauds through the Unified Payments Interface (UPI).

A division bench comprising Chief Justice DK Upadhyaya and Justice Tejas Karia sought response of the Union of India through Ministry of Finance, Reserve Bank of India and National Payments Corporation of India.

The plea, moved by one Pankaj Nigam, seeks creation of an effective regulatory and investigative framework to prevent UPI-based financial frauds and ensure prompt recovery mechanisms for victims.

According to the petition, the issue assumes urgency due to the “staggering surge” in digital payment frauds in recent years.

Nigam claims to have been duped of Rs. 1.24 lakh in February 2024 while searching for rental accommodation online. The plea alleges that despite filing complaints, no recovery has been made nor details of the fraudsters shared.

The plea seeks a direction on the authorities to make it mandatory for all the Banks or Financial Institutions to allow only KYC-Complete Bank Accounts to participate in UPI Payments Interface.

A direction is sought to create a dedicated platform, seamlessly integrating the National Cyber Crime Helpline Portal with UPI Applications, Banks, Payment Service Providers and Telecom Operators, allowing the victims to report such crime in a simplified and time sensitive manner.

The plea further seeks framing of guidelines for including UPI Frauds under Rs.10 Lakhs under the e-Zero FIR initiative, automatically registering FIR for serious online financial frauds, and streamlining the hurdles regarding multiplicity of applicable laws and jurisdictional delays in reporting to correct cyber crime police station.

It also seeks creation of an standard operating procedure beyond the Information Technology Act for investigation of UPI frauds involving several victims across multiple jurisdictions.

Counsel for Petitioner: Adv. Nishchaya Nigam, along with Adv. C.Ankeeta Appanna

Title: Pankaj Nigam v. UoI & Ors