Rs 50 lakh loan cleared in 15 minutes: Karnataka HC stays criminal case against ‘digital arrest’ victim, pulls up bank

The court questioned the action of the bank in transferring the amount without any documents. It said, “How could the bank transfer the amount of Rs 50 lakh, without any documentation?”

Additional State Public Prosecutor B N Jagadeesh submitted before the court that it is not understandable as to how the bank could release the huge amount of public money into the account of the petitioner without any documentation. He urged the court to address the said issue as well.

Fraud committed in 2024

On September 17, 2024, the 32-year-old victim received a call from someone claiming to be a FedEx employee, informing that her Aadhaar number was used for purchasing drugs. He then transferred the call to someone claiming to be attached to the Mumbai police. That person informed that her Aadhaar card was used for multiple matters and her bank accounts were linked to several frauds. The call was then transferred to a person claiming to be a Deputy Commissioner of Police (DCP) who informed the victim that funds from her account were used to purchase an AK-47, etc.

He then transferred the call to a person claiming to be working with the Reserve Bank of India (RBI). That person told the victim that if she wished to clear her name, she must transfer some funds. He logged into her Skype account and they made her take an instant loan online.

The bank credited the loan amount of Rs 50 lakh to her account in 15 minutes, following which the fraudsters made the woman add three payees and transfer the entire amount to them on the assurance that she would get a No-Objection Certificate (NOC) the same day stating that she was cleared in all the cases.

Police recovered Rs 10 lakh

Advocate Suraj Sampath, appearing for the petitioner, informed the court that the victim was under ‘digital arrest’ continuously for around 10 hours in September 2024 during which time the fraudsters made her take an instant pre-approved loan of Rs 50 lakh from ICICI Bank. The amount was credited to her account without the bank taking any documents or verification, he said.

Sampath also argued that even when it is admitted by the bank that the amount is received out of fraud, misrepresentation and coercion, still they have filed the criminal proceedings. It was also pointed out that the police, during the investigation into the First Information Report (FIR) registered by her following the fraud, recovered Rs 10 lakh which had been forwarded to mule bank accounts. However, the bank did not want to recover that amount by following procedure before the magistrate court, but was pursuing the petitioner for recovery.

The court issued notice to the respondents and directed the state government to place on record the investigation report or papers of investigation carried out in the case filed by the victim in 2024. The court has now posted the matter for further hearing on February 20.