The Supreme Court has issued notices to the Centre, Central Bureau of Investigation (CBI), Reserve Bank of India (RBI), and several private banks on a plea filed by a 78-year-old retired banker who was defrauded of nearly ₹23 crore in a sophisticated cybercrime involving a month-long “digital arrest”.
A bench headed by Chief Justice Surya Kant and Justice Joymalya Bagchi sought responses from the authorities and banks after hearing the petition filed by Naresh Malhotra, a resident of Gulmohar Park in South Delhi, who was allegedly duped by fraudsters posing as officials of the Enforcement Directorate (ED) and CBI.
According to the plea, Malhotra was coerced by the imposters into believing that his Aadhaar credentials were linked to grave criminal acts including narcotics trafficking, terror funding, and even the Pulwama attack. Using this fabricated narrative, the fraudsters isolated him in his home for nearly a month under the guise of an investigation.
Police reports suggest that the cybercriminals directed the victim not to leave his house and manipulated him into making large fund transfers from his bank accounts to those specified by the scammers. Threats of arrest and dire consequences were allegedly used to keep him from contacting anyone.
The ordeal began on August 4, 2025, when Malhotra received a phone call from a person claiming to be a Mumbai Police officer, accusing him of being part of a drug racket. Over the following days, individuals impersonating ED and CBI officials intensified the psychological pressure. Fearing for his safety and reputation, the elderly man complied and continued transferring funds over a period of several weeks.
It wasn’t until September 19, 2025, that Malhotra managed to file a complaint on the National Cybercrime Reporting Portal. The matter was then handed over to the Intelligence Fusion and Strategic Operations (IFSO) unit of Delhi Police. An FIR was lodged, and investigations led to the freezing of ₹12.11 crore of the siphoned amount across various bank accounts.
In his petition before the apex court, Malhotra has sought directions for the banks involved in the transactions—Kotak Mahindra Bank, HDFC Bank, Axis Bank, ICICI Bank, IndusInd Bank, City Union Bank, and Yes Bank—to reimburse the defrauded amount of ₹22.92 crore, claiming lapses in detecting and stopping suspicious fund movements.
The Supreme Court has now sought replies from all parties involved. The case is expected to test the accountability of private banks in detecting large-scale cyber frauds, particularly when vulnerable citizens are targeted.
The case highlights a rising trend of “digital arrest” scams, where victims are subjected to psychological confinement and extorted over extended periods using impersonation of law enforcement. Experts have warned that elderly individuals are increasingly being targeted due to their perceived compliance and lower digital literacy.
The next hearing in the matter is expected after the respondents file their replies.
