Chandigarh: Amid the growing threat of cybercrime in the country, the Punjab and Haryana High Court has expressed serious concern over the existing legal framework and punishment prescribed for cyber fraud offences. While hearing a bail plea in an alleged cyber fraud case involving approximately ₹73 lakh, the court observed that the existing legal framework and prescribed punishment do not appear to be sufficiently deterrent. The court also highlighted the growing fear among bank account holders that their funds could be siphoned off through fraudulent means.
The case concerns an alleged online fraud of around ₹73 lakh involving Gurugram resident Vikram Midha. Sanjay Singh, an accused in the case, had approached the High Court seeking regular bail. He had remained in custody for around 11 months. During the hearing, the court considered the growing threat posed by cybercrime and its impact on the security of banking transactions.
According to the case details, the accused received a WhatsApp link related to online trading. Attracted by the prospect of earning money through online trading, he allegedly clicked on the link and transferred funds into different bank accounts. The victim reported the matter to the cyber police in September 2025, following which approximately ₹20 lakh was recovered.
During the bail hearing, the defence highlighted a major challenge in investigating cyber fraud cases. It was argued that the actual masterminds behind such frauds often remain beyond the reach of law enforcement, while bank account holders and intermediaries who allegedly provide their accounts for relatively small amounts of money are arrested.
The defence further submitted that in several cases, account holders may not know who is actually operating their accounts or where the money is ultimately being transferred. Such individuals are allegedly persuaded to provide their bank accounts in exchange for small financial incentives, after which transactions involving lakhs or even crores of rupees may be routed through those accounts.
The court was also informed that only two of the five prosecution witnesses had been examined so far. Considering the accused’s prolonged incarceration of around 11 months and the progress of the trial, the defence sought regular bail.
While granting bail, the High Court expressed concern over the wider cybercrime situation. The court observed that the alarming increase in cybercrime has created a sense of apprehension among bank account holders that money lying in their accounts could be siphoned off through fraudulent means at any point, leaving them helpless and vulnerable.
The court further observed that, considering the growing menace of cybercrime and its serious consequences, the existing legal framework and punishment prescribed for such offences do not appear to be sufficiently deterrent. The observation underlines the challenges faced by investigators in tracing the actual perpetrators, establishing the flow of funds and bringing the masterminds of cyber fraud networks within the reach of law enforcement.
The High Court also directed that a copy of its judgment be sent to the Directors General of Police of Haryana, Punjab and Chandigarh. The concerned authorities have been asked to circulate the order among the cyber cells and personnel involved in the detection and investigation of cybercrime cases so that the court’s observations can be taken into consideration during investigations.
However, while granting bail, the court imposed a significant condition on the accused. It made it clear that if he is found involved in any similar offence in the future while the pending trials are continuing, he would not be entitled to seek bail in subsequent cases. The prosecution has also been directed to approach the concerned courts if the accused is found involved in any similar offence and bring the present order to their notice.
The case highlights the growing challenge of bank accounts being used as channels for moving funds generated through cyber fraud. For investigators, tracing the source of the money, identifying the ultimate beneficiaries and establishing the complete network behind fraudulent transactions remain critical. The High Court’s directions could serve as an important reference for cybercrime units dealing with such cases and pursuing the financial trail to the actual perpetrators.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
