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Taking a firm stand against the rapid rise in cyber fraud, the Rouse Avenue Court has observed that cybercrime has emerged as a serious threat to society and courts must refrain from granting anticipatory bail in such cases. The court made these remarks while rejecting anticipatory bail pleas filed by three accused in a major online fraud case.
Describing cyber fraud as a form of “new-age dacoity”, the court noted that its impact goes far beyond financial loss, striking at the very foundation of public trust, institutional credibility and the security of digital transactions. Citing available data, the court said that Delhi residents alone lost around ₹1,250 crore to cyber fraud over the past year. At the national level, the estimated loss has crossed ₹20,000 crore—an amount comparable to the annual budget of a small state.
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Fraud Orchestrated Using 7,721 SIM Cards
According to the first information report (FIR), a private company—M.S. Lord Mahavir Services India Private Limited—procured 7,721 SIM cards from a telecom operator during 2024–25. Investigating agencies allege that these SIM cards were used as a key tool to carry out large-scale cyber fraud operations.
The investigation revealed that callers impersonated officials from the Telecom Regulatory Authority of India (TRAI), law enforcement agencies and other government bodies to intimidate victims and extract money. The prosecution informed the court that the company had submitted a fake list of end users to obtain the SIM cards, which were issued in the names of individuals who were not company employees.
Fake Documents, Organised Criminal Network
The court was told that the misuse of SIM cards was part of a well-organised criminal network. According to the prosecution, SIM cards were obtained using forged documents and then deployed across multiple cyber fraud modules. Taking note of these facts, the court observed that the intent of the accused clearly pointed towards deep involvement in organised cybercrime.
Given the seriousness of the allegations and the material collected so far, the court rejected the anticipatory bail pleas of the three accused—Anik Jain, Amardeep Sharma and Arihant Jain. The accused are facing charges related to criminal conspiracy, cheating and multiple provisions of the Information Technology Act. The case has been registered by the Central Bureau of Investigation (CBI).
Investigation at a Crucial Stage
In its order, the court noted that the investigation is still at an initial stage and the actual number of victims is yet to be fully identified. Custodial interrogation of the accused may be required at a later stage to uncover the full extent of the operation. Granting any form of relief at this point, the court said, could adversely affect the investigation.
Modus Operandi: SIM Boxes and Mule Accounts
Police investigations have revealed that the accused used illegal ‘SIM boxes’ to route international calls. This technology allowed calls originating from abroad to appear as domestic Indian numbers on victims’ phones, increasing the likelihood of trust and compliance.
To siphon off and launder the defrauded money, the accused allegedly relied on ‘mule bank accounts’. These accounts are typically opened in the names of economically vulnerable individuals, who are lured with small commissions. In recent months, investigators have also flagged signs of possible collusion within parts of the banking system in facilitating such accounts.
Rising Crime, Improved Recovery
While cybercrime incidents continue to rise sharply, law enforcement agencies have managed to improve recovery rates through faster response mechanisms and better coordination. In Delhi, the recovery rate has increased from around 10% earlier to nearly 24%, according to official data.
What Victims Should Do
Experts stress that speed is critical in cases of cyber fraud. The sooner a complaint is registered, the higher the chances of freezing the stolen funds. Citizens are advised to report incidents within 24 hours by calling the toll-free helpline 1930 or by lodging a complaint on the National Cyber Crime Portal.
Concluding its observations, the court said that tackling the growing menace of cybercrime requires not only a strict legal approach but also heightened public awareness and greater institutional accountability to protect citizens in an increasingly digital economy.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
