‘Present machinery can’t handle traditional cybercrimes, AI/ Deep fake challenges’: Inside Rajasthan High Court’s detailed directions to curb cybercrimes

Disclaimer: This has been reported after the availability of the order of the Court and not on media reports so as to give an accurate report to our readers.

Rajasthan High Court: In an application filed by petitioner-accused seeking bail in a case where he was accused of extorting Rs. 2,02,00,000 from an elderly couple by putting them under digital arrest, a Single Judge Bench of Ravi Chirania, J., held that present machinery in the State is not well equipped to handle not only the traditional cybercrimes but also the upcoming serious future challenges of artificial intelligence and deep fake and other such technological challenges.

Thus, the Court issued directions to the Additional Chief Secretary (‘ACS’), Home, Director General of Police (‘DGP’), Director General (‘DG’), State Crime Record Bureau (‘SCRB’) and Cyber for issuance of necessary notifications, circulars, standard operating procedure (‘SOPs’) etc., to handle the issue of rising cybercrime in State of Rajasthan.

Background

In the present case, it was alleged that the petitioners extorted money from an elderly couple, more than 84 years of age, by putting them under digital arrest under the threat that some persons had committed cyber fraud of Rs. 538 crores in which 230 bank accounts were used, including the bank account of the complainant and his wife. They along with two other persons impersonated themselves as Sub-Inspectors of Cyber Police, Mumbai and other officials and extorted a total sum of Rs. 2,02,00,000, between April 2025 and May 2025, from the complainant. He had deposited the money from his nine bank accounts into nine bank accounts of the petitioners and other persons, as instructed, and Rs. 45,00,000 was deposited into the bank account of the petitioners, and the rest went into the bank accounts of the other untraced persons.

Consequently, an FIR was registered under Sections 308(2), 308(6), 318(2), 318(4), 319(2), 336(3), 338, 66C, 66D, and 61(2) of the Bharatiya Nyaya Sanhita 2023 (‘BNS’). Thereafter, the petitioners were arrested and thus, they moved a bail application before the Trial Court which came to be rejected by the Additional Sessions Judge.

Issues, Analysis and Decision

The Court noted the seriousness of the offences and stated that cases of digital arrest committed by misuse of information technology are growing at a fast pace and modus operandi in all cases is almost the same. Thus, the Court stated that it was not inclined to enlarge the accused on bail and dismissed the application at hand.

Considering the difficulty faced due to cybercrimes, the Court discussed the issue as to why cybercrimes have become a serious challenge today?

The Court stated that while hearing many bail applications involving cybercrime, it noted improper/insufficient investigation, lack of knowledge and understanding within the investigating machinery of the State regarding cybercrime and related technical issues, and the plight of victims. The speed with which the digital world is moving now has put the entire system, including society, in difficult conditions as they are not able to adjust and move along with it rather, they are seriously lagging far behind due to various factors. The digital world has seriously affected the following:

1. society and personal life of common man,

2. economy of the country,

3. law and order,

4. education system,

5. banking system, etc.

The Court stressed that majorly all cybercrimes are committed for money or for destroying or damaging the infrastructure, the reputation or restricting the working of the people/system. As far as the cybercrimes, which are committed for money are concerned, the major problem lies with the banking system which has been put into a precarious situation by the cyber criminals who are far ahead with the system. Further, the Court noted that the banks, even after taking all necessary steps, are facing the following problems in dealing with digital crimes which are:

1. Issue of mule account and mule money

2. Misuse of internet banking by small account holders who are illiterate or have zero digital literacy

3. Bulk posting/transfer of mule money/fraud money in multiple bank accounts

4. Misuse of ATMs of mule account holders by unauthorized persons

5. Fast and easy conversion of money received through cyber fraud into digital assets, i.e. crypto currency, etc.

6. Lack of control over daily payments and UPI, etc.

Further, the Court noted that the Government of India had requested the States/UT’s to set up their regional cybercrime co-ordination center in convergence with Indian Cyber Crime Co-ordination Centre (‘Indian Cyber Centre’) in 2023 but still there is no effort or initiative on the part of the State Government to establish Regional Cyber Crime Coordination Centre (‘Regional Cyber Centre’). Thus, the Curt directed that every State is required to have its own system in place to monitor, control, investigate, and take other measures to control the menace of growing cybercrimes.

The Court also addressed the issue pertinent to the need of digital experts and inspectors to control and investigate cybercrimes in the State.

The Court stated that the present machinery in the State under Director General (‘DG’) SCRB and Cyber is not equipped to handle not only the traditional cybercrimes but also the upcoming serious future challenges of artificial intelligence and deep fake and other such technological challenges. The country and the economy are now moving fast towards adoption of artificial intelligence in the system and to handle the challenges which have started coming due to artificial intelligence and deep fake but the Government and all its departments, wings, etc., at the state level are hardly prepared. Thus, the Court issued directions to the State machinery.

Directions To ACS Home, DGP, DG SCRB and Cyber

1. ACS Home should issue a notification for the establishment of the Rajasthan Cyber Crime Control Centre (‘Rajasthan Cyber Centre’) on the lines of Indian Cyber Centre for prevention, detection and investigation of cybercrimes in the State of Rajasthan.

2. ACS Home would ensure that the Rajasthan Cyber Centre has all powers in the State similar to Indian Cyber Centre but not in conflict with its working,

3. The State should start a toll-free number for automatic registration of FIRs on reporting of a complaint which must start from 1-2-2026.

4. ACS Home, after consultation with the Department of Personnel and other Departments, should take steps for appointment of Inspectors exclusively for the office of DG (Cyber) without taking much time in administrative consent.

5. The Information Technology (‘IT’) Inspectors would not be transferred to any other department except on deputation or until and unless required by other investigation agencies with due permission from ACS, Home and DG, Cyber.

6. ACS Home should expedite the process of establishment of the required accredited lab under Section 79(a) of the IT Act, 2000 and ensure its effectiveness by 1-2-2026.

7. ACS Home should ensure that the accredited lab must have all the required latest digital technology and infrastructure including qualified manpower in place.

8. ACS Home, DGP and DG Cyber would jointly take quarterly meetings with all Investigating and Law Enforcement Agencies of the State apart from Banks, Telecom Service Providers, Internet Service Providers & Intermediaries etc., and would issue necessary directions for coordination.

Directions in respect of Banks, Financial Institutions, Fintech Companies, etc.

1. ACS Home and DG, Cyber should instruct them to use Artificial Intelligence (‘AI’) Tools in ATM software to detect and stop/block the use of multiple ATM cards when it is used by unauthorized persons.

2. ACS, Home should ensure that they long with the authority of Reserve Bank India (‘RBI’) in the State, strictly act to control and monitor mule accounts in the State.

3. All banks and financial institutions etc. must use the Mule Hunter (AI) tool as developed by RBI to detect mule accounts and trace mule money.

4. The KYC of all mule accounts detected and suspected one be re-done and be investigated and if Bank officials are found to be involved in opening of such accounts, then necessary instructions would be issued by ACS, Home to highest authorities of the banks, etc. to take necessary disciplinary action against them.

5. All dead or inactive bank accounts should be put under strict vigil, and their KYC must be done again.

6. All banks, financial institutions, etc. should be directed by ACS, Home and DG Cyber, to not permit or stop internet banking facilities for accountholders whose activities appear to be suspicious. The daily UPI limits should also be set for such account holders.

7. The ACS, Home should ensure that they strictly monitor and control bulk transfers of amounts by unknown person or unauthorized and suspicious person excluding Central Government, State Government and the authorities controlled by them.

8. The ACS, Home would also issue directions to the top authorities of banks, financial institutions, etc. to strictly monitor the working of their officials

Directions for regulation of sale and purchase of all digital devices and sim cards, call centre/Business Process Outsourcing (‘BPO’) etc.; social networking sites in the State, etc.

1. The ACS, Home should issue directions for the registration of and regulation of the sale and purchase and other connected activities of all companies, shopkeepers etc. which are engaged in the commercial activity of sale and purchase of original and secondhand devices.

2. DG Cyber should create the system, by 1-2-2025, in the form of software for such registration and regulation of connected activities but shall ensure that there is no violation of privacy or any applicable law.

3. The ACS Home, DG, SCRB & Cyber, in coordination with Department of Information Technology & Communication (‘DOIT’), Rajasthan, telecom service providers should ensure that no individual person is issued more than three SIM cards in the State.

4. All Call Centre, BPO, etc. involved in any kind of telemarketing, digital communication & for providing any other digital service, etc., operating in the State must be registered with DG, cyber.

5. The ACS, Home, by a detailed circular, should ensure that all users of digital or social networking sites who are residents of the State or residing in the State shall have genuine IDs connected with their Aadhar No. or such identity details so as to ensure that no impersonation is done by any person in the State.

6. ACS Home should issue notification regulating the affairs of all youtubers or other such digital influencers having their YouTube channels, etc. who commercially work in the digital space interests who are either resident of the Sate or residing in the State.

Directions in respect of E-commerce Companies, Courier Delivery Companies etc. and Gig Workers

1. All gig workers should be registered with DG Cyber, and a common uniform with a QR code and ID card for their identification shall be made mandatory from 1-2-2026.

2. All Ola, Uber etc. cars and bike riders, and all gig workers of companies like Swiggy, Zomato, etc. should be compulsorily registered with the State Transport Department with a commercial number plate. They must also be registered with DG Cyber.

3. All E-commerce and other such companies should be directed by ACS, Home to appoint a gig worker after Police verification and complete background check.

4. ACS Home, for the safety of female passengers, should ensure that the companies like Ola, Uber, etc. are encouraged to have at least 15% female drivers within six months.

Directions in respect of government departments, authorities, etc. for digital audit

1. ACS Home should direct all Government departments, authorities etc. to conduct a monthly audit of all the digital transactions & digital activities of the department to detect and stop any financial and other digital fraud in the government/department machinery which involves public money.

2. ACS Home should direct all banks, financial institutions, fintech companies etc., to issue a joint SOPs to be followed mandatorily by their officials up to the bottom level to closely monitor sudden high-value transactions by elderly couple or vulnerable account holders etc.

3. The ACS, Home should direct-Banks, financial institutions etc., to identify customers vulnerable to fraud and shall monitor their activities for protection.

Directions To ACS Home, Director Prosecution, Government of Rajasthan

1. ACS, Home & Director Prosecution, State of Rajasthan, in consultation with the Department of Law & Justice (State), should appoint at least one Special Public Prosecutor (‘SPP’) in each district, one SPP each for Principal Seat and the other Bench of Rajasthan High Court and one Cyber Law Consultant in the Office of Director Prosecution.

Directions for issuance of SOP for children under 16 years for use of mobile phones in school, online games, social networking sites, etc.

1. ACS, home should issue direction regarding the use of smart phones/keypad phones in schools for children up to class 9th or below the age of 16 years for safety and protection of children from being the victim of cybercrimes within four months.

Directions in respect of Digital Personal Data Protection Act, 2023 (‘DPDP Act’) and Digital Personal Data Protection Rule, 2025 (‘DPDP Rules’) and other digital laws

1. ACS, Home and DG Cyber, should ensure timely and strict compliance of the DPDP Act, DPDP Rules and other digital laws in the State.

Directions for Awareness

1. The Member Secretary, Rajasthan State, Legal Service Authority should initiate necessary steps for prevention of cybercrimes by starting awareness drive and establishing Cyber Security Awareness Cell and may also appoint IT experts, lawyers with knowledge of Cyber Laws for providing legal assistance and information to the litigants up to the District and Taluka level.

2. DG, Cyber should initiate awareness drive about cybercrimes in all government departments, colleges, schools and other institutions etc.

[Adnan Haidar Bhai v. State of Rajasthan, S.B. Criminal Miscellaneous Bail Application No. 7940 of 2025, decided on 27-11-2025]

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Advocates who appeared in this case:

For the Petitioner: Ram Singh Rawal and Surendra Bagmalani, Advocates

For the Respondent: Rajeev Kumar Sharma, Sachin Mittal, Om Prakash, Deepak Choudhary Additional Advocate General-cum-GA, Nisheeth Dixit- Advocate, Urja Ram Kalbi, PP, Prakash Bishnoi, Mahipal Singh, Shiv Singh, Pushpendra Singh, RPS, Tej Karan Parihar, Nitin Dave, Barshi Lal, Advocates