New Delhi, Aug 30: Chief Justice of India Surya Kant has said the Indian judiciary has taken proactive steps to tackle emerging financial frauds, including “digital arrest” scams, instead of waiting for Parliament to enact specific laws.
Addressing the closing session of the 43rd International Symposium on Economic Crime in London, the CJI said the Supreme Court had recently taken suo motu cognisance of digital arrest scams, in which fraudsters impersonate police officers, judicial officials and bureaucrats through video calls to deceive and extort money from citizens.
He said the court had directed the Union and state governments to assess the scale of the problem and consider creating a separate offence with penalties proportionate to the harm caused.
“This exemplifies a broader pattern: an Indian Judiciary that proactively responds to emerging fraudulent schemes, rather than waiting for Parliament to address them,” Kant said.
The CJI said India’s response to economic crime had evolved into a layered legal and institutional framework developed over several decades. He cited laws such as the Prevention of Money Laundering Act, 2002, and the Fugitive Economic Offenders Act, 2018, as key components of this framework.
Kant, however, acknowledged concerns over the alleged misuse of anti-money laundering laws, including claims of arrests without adequately stated reasons and prolonged custody. He said the judiciary had stepped in whenever such issues came before it.
Referring to a Supreme Court ruling, he said the grounds for arrest must be communicated to an accused in writing rather than merely being read out.
He also referred to the case of Arvind Kejriwal versus the Central Bureau of Investigation, saying the court upheld the legality of the arrest but granted bail on the principle that prolonged pre-trial detention must not become punishment by another name.
The CJI said due process, proportionality and the presumption of innocence have remained central to the Supreme Court’s jurisprudence despite changes in law and technology.
He also highlighted the role of the Insolvency and Bankruptcy Code, 2016, in enabling civil recovery proceedings to continue alongside criminal cases.
On international cooperation, Kant said Mutual Legal Assistance Treaties often provide a more reliable mechanism for recovering illicit assets from abroad than extradition proceedings.
Citing global estimates of money laundering, he underlined the enormous scale of illicit financial flows and the very small proportion of such wealth that is ultimately recovered.
The CJI also invoked Kautilya’s Arthashastra, noting that concerns over officials misappropriating state funds date back centuries.
He concluded by stressing the need for greater vigilance, international cooperation and adherence to the rule of law to combat economic crime and fraud effectively.
