New Delhi: Calling the siphoning of monies by scamsters in digital arrest cases as “absolute robbery and dacoity”, the Supreme Court on Monday raised serious concerns over the possible “collusion” or “negligence” of bank officials in such fraudulent transactions
“In their over anxiety of doing business they have forgotten that they are trustees of public money”, Chief Justice of India (CJI) Surya Kant, speaking for a division bench, verbally remarked. The remark fell from the CJI during the resumed hearing of a suo motu case relating to digital scandals. In a sharp remark, the CJI orally remarked that “these banks are becoming a liability. Banks should know that they are a trustee of public money and they should not get over excited with it. That trust should not be broken”.
The CJI made it clear that such conniving bank officials “should be punished and put behind bars if they are recklessly lending money (to fraudsters)”. In a connected matter, earlier in the day, the CJI verbally remarked “We have seen bank officials are completely hand in gloves with the accused in these cases of digital arrest”.
Weighing in, Justice Joymalya Bagchi verbally remarked that “banks are more in business mode than compliance mode”. The bench remarked that the Central bank (RBI) needs to give points to banks for “better compliance”. Justice Bagchi lamented the fact that the banks’ annual reports only reveal profits made and not compliance.
Appearing on behalf of the Central government, Attorney General for India (AG) R Venkataramani informed the bench that while implementing measures put in place by the RBI, mule bank accounts were detected. The AG also informed the bench that an inter-departmental committee has been set up by the Centre to coordinate action against such fraudsters. The Bench was further told that the Central Bureau of Investigation (CBI) has identified Rs 10 crores as the amount amassed in digital arrest scams.
Also, RBI and Department of Telecom (DoT) have been directed to hold a joint meeting to create a compensation framework for victims of digital arrest fraud cases.
