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Rajasthan High Court Denies Bail in ₹2 Crore 'Digital Arrest' Scam, Issues Landmark Directives to Combat Cybercrime

JODHPUR: In a significant order with far-reaching implications, the Rajasthan High Court has not only denied bail to two individuals accused of extorting over ₹2 crore from an elderly couple through a "digital arrest" scam but has also issued a comprehensive set of 35 directives aimed at overhauling the state's entire framework for combating cybercrime.

The single-judge bench of Hon'ble Mr. Justice Ravi Chirania , while dismissing the bail applications, used the occasion to address the systemic challenges posed by the exponential growth of digital crimes, laying down a detailed roadmap for administrative, legislative, and technological reforms.

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The Case: A Sophisticated 'Digital Arrest' Fraud

The bail applications were filed by Adnan Haidar Bhai and Rahul Jagdish Bhai Jadhav, who were arrested in connection with an FIR registered at the Cyber Police Station, Jodhpur. The prosecution alleged that the petitioners, along with other co-accused, impersonated police officials from Mumbai and extorted ₹2.02 crore from an 84-year-old man, Prem Mohan Govila, and his wife.

The accused allegedly placed the elderly couple under "digital arrest"—a form of virtual confinement through continuous video calls—threatening them with false implication in a ₹538 crore money laundering case. Under duress, the victims transferred the massive sum to nine different bank accounts between April 30 and May 8, 2025.

Arguments in Court

The petitioners' counsel argued for their innocence, claiming they had been falsely implicated and had not received any of the extorted money. They also contended that the alleged offences were triable by a Magistrate.

The prosecution vehemently opposed the bail, highlighting the gravity of the offence, the vulnerability of the elderly victims, and the nascent stage of the investigation. It was submitted that out of the extorted amount, ₹45 lakh was directly traced to the bank accounts of the petitioners, contradicting their claims of innocence.

Court's Rationale for Bail Denial

Justice Chirania dismissed the bail pleas, noting the seriousness of the offences and the petitioners' attempt to mislead the court by stating false facts. The court observed, "Considering overall facts and circumstances of the case, without making any comments on the merits of the present case, this Court is not inclined to enlarge the present applicants on bail."

A Judicial Blueprint to Tackle a Growing Menace

Beyond the bail order, the judgment delved deep into the systemic failures in tackling cybercrime. The court expressed grave concern over the lack of technical expertise within the state's investigating machinery.

> "The traditional police force, in which persons are recruited from arts, commerce and science backgrounds with zero or very little knowledge... cannot handle the digital challenges even with some part-time/temporary/contractual assistance of technical experts," the Court observed.

Recognizing this gap, Justice Chirania issued a sweeping set of 35 directions to various state authorities, including the Additional Chief Secretary (Home), the Director General of Police (DGP), and the Director General (SCRB & Cyber).

Key Directives Include:

• Institutional Framework:

  • Establish a Rajasthan Cyber Crime Control Centre (R4C) on the lines of the central government's I4C.
  • Launch a new state-specific toll-free number for automatic registration of FIRs in cybercrime cases by February 1, 2026.

• Specialized Policing:

  • Recruit technically qualified "IT Inspectors" with specialized domain knowledge, citing the recruitment model adopted by the State of Punjab.
  • Establish an accredited digital forensics lab as per Section 79(a) of the IT Act by February 1, 2026, with a mandate to provide reports within 30 days.

• Banking and Financial Sector Reforms:

  • Mandate banks and financial institutions to use AI tools like "Mule Hunter" to detect and monitor mule accounts.
  • Implement strict SOPs for sudden high-value transactions by elderly or vulnerable customers, including mandatory physical visits.
  • Restrict internet banking facilities for accounts with low transaction history or for digitally illiterate individuals.

• Regulation and Control:

  • Regulate the sale of all new and second-hand digital devices.
  • Limit the issuance of SIM cards to three per individual in the state.
  • Mandate registration for all call centers, BPOs, and platform-based gig workers (e.g., Ola, Uber, Zomato) with the DG Cyber.

• Legal and Awareness Initiatives:

  • Appoint Special Public Prosecutors with technical expertise in cyber law in every district.
  • Direct the Rajasthan State Legal Services Authority (RSLSA) to launch awareness drives and establish Cyber Security Awareness Cells.

Final Decision and Implications

The court ultimately dismissed the bail applications of Adnan Haidar Bhai and Rahul Jagdish Bhai Jadhav. However, the judgment's true impact lies in its proactive and prescriptive approach to a modern-day challenge. It serves as a judicial blueprint for systemic reform, urging the state to move beyond reactive measures and build a robust, technologically advanced ecosystem to prevent, detect, and prosecute cybercrimes effectively. This order is poised to become a reference point for other states grappling with similar challenges in the digital age.