Supreme Court took suo motu cognisance of digital arrest scam, directing Union & states to assess and create a distinct offence with proportionate penalties.
Judiciary has rectified misuse of PMLA, ensuring written arrest warrants and preventing pre‑trial detention from becoming punishment.
International Mutual Legal Assistance Treaties recover illicit assets far better than extradition; less than 1% of global money laundering is recovered globally.
Proactive Judicial Response to Digital Arrest Scams Chief Justice Surya Kant delivered a powerful address at the 43rd International Symposium on Economic Crime in London, emphasizing the Indian judiciary’s willingness to act before Parliament. The Supreme Court has already taken suo motu cognisance of the “digital arrest” scam, where fraudsters impersonate police or judicial officials over video calls. The court has instructed the Union and states to evaluate the scope of the problem and has called for a distinct offence with penalties proportionate to the harm caused.
Strengthening Legal Frameworks and Due Process The CJI highlighted the layered architecture of India’s economic‑crime response, citing the Prevention of Money Laundering Act (PMLA), 2002 and the Fugitive Economic Offenders Act, 2018. He noted that while these laws are powerful, misuse has been reported—arrests without articulated reasons and extended custody beyond facts. The judiciary has stepped in to correct such instances, ensuring that grounds for arrest must be provided in writing and that pre‑trial detention does not transform into punishment. In the landmark case of Arvind Kejriwal vs. CBI, the Supreme Court upheld the legality of an arrest but granted bail, underscoring the principle of proportionality.
International Cooperation and Asset Recovery CJI Kant underscored the importance of Mutual Legal Assistance Treaties (MLATs) in recovering illicit assets. He pointed out that MLATs, though imperfect, are more reliable than extradition in retrieving stolen wealth. With global money‑laundering estimates suggesting enough illicit funds to buy a modest laptop for every person on Earth, less than 1% of that money is ever recovered. The judiciary’s insistence on due process, proportionality, and cooperation with foreign jurisdictions is therefore pivotal in curbing economic crime and safeguarding the nation’s financial integrity.
