Amid a rising wave of online investment frauds across India, the Delhi High Court on Monday rejected the bail pleas of two men accused of defrauding investors of nearly ₹2.38 crore through fake online trading platforms.
The bench, led by Justice Ajay Digpaul, underscored that cybercrimes “know no geographical limits” and can be perpetrated remotely, leaving victims scattered across jurisdictions. The court further noted that granting bail in such cases could “dilute the deterrent effect” necessary to combat the rapid expansion of financial cybercrimes in India.
A Digital Trap: How WhatsApp and Telegram Became the Frontline of Investment Fraud
According to the case file, the accused allegedly operated an elaborate scam through online groups under the name CHC-SES on WhatsApp and Telegram.
Victims were lured with promises of high returns from trading on foreign exchange and crypto-based online platforms. Initially, small profits were shown to build trust, after which participants were persuaded to invest larger sums. Once significant amounts were transferred, access to the apps was blocked, websites vanished, and group administrators disappeared without a trace.
One complainant reported a personal loss of ₹29.5 lakh.
The case was registered following multiple complaints received by the Intelligence Fusion and Strategic Operations (IFSO) unit of the Delhi Police Special Cell, which has been investigating a surge in such online investment scams since 2023.
The Courtroom Battle: “False Implication” vs. “Organised Syndicate”
The accused argued that they had been falsely implicated, claiming no direct communication with the complainants and denying any benefit from the transactions.
However, Additional Public Prosecutor Meenakshi Dahiya, representing the Delhi Police, informed the court that the accused had induced multiple victims to transfer funds into 24 different bank accounts, resulting in collective losses amounting to ₹2.38 crore.
The investigation revealed an organised cyber-fraud network that used forged identities, multiple bank accounts, and digital masking techniques to obscure money trails. Funds were layered across accounts in various states before being siphoned off through digital wallets and crypto exchanges, making detection increasingly complex.
The Court’s Stand: “Cybercrime a New-Age Challenge to Justice”
Dismissing the bail pleas, the court stated —
“The alarming rise in cyber and financial crimes cannot be overlooked. Such offences transcend geographical boundaries and are often executed remotely through sophisticated digital networks. Granting bail at this stage would risk undermining deterrence in offences that are both trans-territorial and technologically complex.”
Justice Digpaul further remarked that preserving public confidence in the digital financial ecosystem was essential, as “once trust is eroded, the stability of digital transactions is compromised.”
The Rise of “Social Media Trading Scams”
Cybersecurity experts note that India has seen an exponential rise in social media-based investment scams. Fraudsters create groups on platforms like WhatsApp, Telegram, and Instagram, posing as financial advisors or brokers.
Victims are enticed through fake screenshots of profits, fabricated testimonials, and AI-generated support chatbots that mimic genuine trading platforms. In most cases, the masterminds operate from outside India, while local intermediaries handle money laundering through Indian bank accounts.
Cybercrime Landscape in India
According to official data, over 70,000 cases of cyber fraud were reported in India in 2024 alone, with a substantial portion linked to digital payments, phishing, and investment frauds.
Contents
A Digital Trap: How WhatsApp and Telegram Became the Frontline of Investment FraudThe Courtroom Battle: “False Implication” vs. “Organised Syndicate”The Court’s Stand: “Cybercrime a New-Age Challenge to Justice” The Rise of “Social Media Trading Scams”Cybercrime Landscape in IndiaBroader Implications
Regulatory and enforcement bodies like the Reserve Bank of India (RBI), CERT-In, and Delhi Police’s IFSO unit have ramped up coordination with banks and fintech platforms to trace financial flows in real time.
However, the evolving sophistication of cybercriminals — including the use of VPNs, crypto transactions, and synthetic digital identities — continues to challenge investigators.
Broader Implications
The Delhi High Court’s decision underscores a clear judicial shift toward zero tolerance for cyber-enabled financial crimes. It also reflects the judiciary’s growing awareness that technology-driven frauds demand both legal vigilance and institutional innovation.
For investors, the judgment serves as a cautionary reminder that “quick-return” investment schemes promoted via social media are often nothing more than sophisticated traps.
