The High Court of Karnataka has refused to quash criminal proceedings against a telecom promoter accused of possessing and attempting to sell dozens of pre-activated SIM cards. Justice Suraj Govindaraj dismissed the petition filed by Mallikarjuna, who had sought the cancellation of charges registered by the HAL Police Station in Bengaluru. Beyond the specific criminal case, the court issued significant, wide-ranging directions to the Cyber Command of the Karnataka Police and major mobile service operators to address the systemic risks associated with unauthorized SIM card activation.

The case originated from a suo motu First Information Report (FIR) registered on September 8, 2022 , after police received intelligence that the petitioner, then employed as a promoter for Reliance Jio , was using customers’ Aadhaar card details and photographs to procure unauthorized SIM card activations. The prosecution alleged that the petitioner was found in possession of 55 Jio SIM cards and 20 Vodafone SIM cards—all of which had already been activated in the names of individuals unconnected to him—with the intent to sell them at inflated prices. The petitioner faced charges under Sections 406, 419, and 420 of the Indian Penal Code , relating to criminal breach of trust and cheating.

Allegations of Misuse and Procedural Irregularities

In his petition to the High Court, the accused argued that his possession of the SIM cards was entirely lawful and incidental to his professional role. He maintained that he had been entrusted with the cards by his employer for legitimate business purposes. Counsel for the petitioner relied on the statement of an Area Manager, designated as CW-8, to argue that promoters were authorized to handle non-activated cards, and contended that no actual sale had been completed. He further asserted that he had not personally activated the cards or committed any act of fraud.

However, the Court found the petitioner’s explanation insufficient to warrant the quashing of proceedings. Justice Suraj Govindaraj noted that the petitioner’s employment with Jio did not account for his possession of Vodafone SIM cards, and that possessing 75 activated cards in the names of third parties was a significant circumstance that required a full-fledged trial. The court emphasized that the authority to distribute non-activated cards does not confer the power to handle pre-activated connections, particularly those linked to unsuspecting customers.

“The jurisdiction exercised by this Court to quash criminal proceedings is intended to prevent abuse of the process of the Court and to secure the ends of justice ,” the Court observed. It held that the prosecution had raised sufficient material to warrant a trial where the validity of the evidence could be tested and the petitioner’s defense fully ventilated.

Addressing Systemic Risks in Telecom Security

The Court’s ruling extended beyond the individual dispute, identifying the broader threat posed by pre-activated SIM cards to public safety and national security. A mobile connection, the Court noted, serves as the cornerstone of modern digital identity, linking users to financial accounts, government services, and sensitive personal data. When these cards are activated without consent, they provide a cloak for illicit actors to conduct cybercrimes while remaining anonymous.

“Pre-activated SIM cards, when circulated without the knowledge or consent of the persons in whose names they stand registered, may facilitate the concealment of the identity of the actual user and complicate the tracing of persons involved in unlawful activities,” the Court stated.

To mitigate these risks, the Court issued a comprehensive set of directives to the Cyber Command of the Karnataka Police . The authorities are now mandated to examine how unauthorized activations are currently detected and to coordinate with jurisdictional police to ensure that any credible reports of such activities are investigated promptly. Furthermore, the court requested the Cyber Command to assess whether incidents involving multiple pre-activated cards point to a broader pattern of criminal infrastructure that requires a coordinated investigative response.

Mandatory Compliance and Future Oversight

The directives further require the Cyber Command to compel mobile service operators, specifically mentioning Jio and Vodafone , to overhaul their internal controls. Operators must now conduct an audit of their existing procedures for appointing, training, and supervising third-party promoters. The Court specifically asked for the implementation of tracking systems that reconcile the number of non-activated cards issued to intermediaries against those eventually sold, cancelled, or returned.

Other requirements include strengthening customer verification processes to prevent the misuse of identification documents, ensuring that consumers have an accessible and efficient mechanism to report unauthorized activations, and establishing clear protocols for how companies should inform affected customers when their data has been compromised. The Court made it clear that these measures must be implemented in accordance with existing telecommunications and data protection laws.

The High Court emphasized that its order was preventative in nature and did not constitute a finding of guilt against the petitioner. The court explicitly noted that the directions should not be interpreted as authorizing indiscriminate surveillance or infringing on the rights of innocent employees or distributors. The legal proceedings in C.C. No. 26756/2024 remain pending before the III Additional Chief Metropolitan Magistrate in Bengaluru, where the evidentiary stage will determine the final outcome of the case. The matter has been relisted for November 27, 2026 , to allow the Director General of Police, Cyber Command, to report on the progress and compliance with the issued directions.