Cyber Fraud Compromise Rejected: Rajasthan HC Shields Digital Trust from Private Settlements

In a firm stance against treating cyber crimes as mere personal squabbles, the Rajasthan High Court at Jodhpur dismissed petitions to quash an FIR despite a settlement between the accused and victim. Justice Baljinder Singh Sandhu ruled on May 6, 2026, that offences like identity theft and online impersonation under the IT Act demand broader societal protection, prioritizing public interest over private peace.

The Scam That Sparked a Legal Battle

The case traces back to FIR No. 07/2024, filed on June 25, 2024, at Jodhpur East's Cyber Police Station. Complainant Surendra Bhandari accused petitioners—including Mohammad Rahil Belim, Mohammad Yasin, Jishan Sheikh, Rashid Alam, and Yunus Khan—of posing as police and CBI officials via phone calls and digital means. They allegedly coerced him into transferring money under threats of arrest, invoking Sections 384 (extortion), 419/420 (cheating and impersonation), 120-B (criminal conspiracy) of the IPC, and crucially, Sections 66-C (identity theft) and 66-D (cheating by personation using computer resources) of the Information Technology Act, 2000.

Petitioners, facing charges in interconnected petitions (S.B. Criminal Miscellaneous Nos. 7795/2025 and 4371/2025), sought relief under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (equivalent to old Section 482 CrPC), arguing the dispute was settled amicably.

Settlement Plea Meets Prosecution Pushback

Petitioners' counsel, Mr. Buddhpal Singh and Mr. RC Joshi, highlighted the compromise: the complainant no longer wished to pursue the case, urging quashing to end proceedings and avoid process abuse.

Opposing fiercely, Public Prosecutor Mr. Vikram Rajpurohit stressed the FIR's gravity. Cyber offences aren't private tiffs—they erode trust in digital systems. As noted in media summaries of the ruling, these crimes "affect the digital ecosystem and public confidence in electronic transactions," making compromise insufficient grounds for dismissal.

Precedents Draw a Line: Private vs. Public Wrongs

Justice Sandhu meticulously dissected Supreme Court landmarks to justify refusal. In Gian Singh v. State of Punjab (2012), quashing suits civil-flavored disputes post-settlement, but cautions against serious crimes. Narinder Singh v. State of Punjab (2014) and Parbatbhai Aahir v. State of Gujarat (2017) refine this: economic offences harming state finances or society defy easy erasure.

Cyber specifics shone through Sharat Babu Digumarti v. Government of NCT of Delhi (2017), affirming IT Act's primacy over electronic offences. Echoing State of Madhya Pradesh v. Laxmi Narayan (2019) and CBI v. Maninder Singh (2016), the court noted such frauds are " public wrongs " with "serious repercussions on the community." Neeharika Infrastructure Pvt. Ltd. v. State of Maharashtra (2021) urged sparing use of inherent powers—only in rarest cases.

Here, impersonation via digital tools endangers all relying on e-transactions, transcending the victim-accused rift.

Key Observations from the Bench

The judgment packs punchy insights:

"Cyber crimes are therefore not merely disputes between private individuals but are offences which affect the digital ecosystem and public confidence in electronic transactions."

"Such acts, by their very nature, transcend private disputes and assume the character of offences impacting society at large."

"Permitting quashing of such offences solely on the basis of compromise between the parties would defeat the purpose and object of the legislation enacted to curb cyber crimes."

These underscore why IT Act violations demand unyielding scrutiny.

FIR Stands: A Win for Cyber Justice

Dismissing the petitions outright, the court held: "this Court does not find any ground to exercise its inherent jurisdiction under Section 528... for quashing of the FIR No.07/2024." Clarifying its views don't prejudice trial, the ruling signals to future cases: compromises won't dissolve cyber probes, safeguarding India's growing digital economy from fraudsters. Victims may settle personally, but society demands accountability.

This decision reinforces legislative intent, as echoed in reports: quashing here would undermine anti-cyber crime efforts, ensuring deterrence beyond individual resolutions.