The Punjab and Haryana High Court on Monday remarked that online frauds and cybercrimes erode public confidence in digital platforms and run counter to the aspirations of an advanced and digitally empowered 'Digitial Bharat' [Deepak v State of Haryana].

Justice Sumeet Goel made the observation while declining anticipatory bail to an accused in a case related to a bank account in which over ₹5.70 crore were deposited and withdrawn in a year even though it was opened for trading in vegetables and fruits with a declared annual turnover of ₹20 lakh.

The Court noted that the owner of the bank account denied any knowledge about the transactions. Further, it refused to accept the argument that the money was earned on gaming applications alone.

"Meanwhile, the police has received 14 cybercrime complaints relating to alleged cyber frauds connected to this account. The account has been linked to deposits originating from such fraudulent activities," the Court found.

In the order dated October 13, the single-judge commented on the larger issue of cybercrimes and how courts should adjudicate the bail please in such matters.

The Court batted for a meticulous evaluation of various factors in such cases.

"Paramount among these is the inherent gravity and seriousness of the offence, coupled with its potential societal ramifications," it said.

The Court also highlighted how such frauds affect the consumer confidence and in turn impact the confidence of public in digital transactions.

"The proliferation of online frauds and cybercrimes poses a significant threat, as it systematically erodes public confidence in digital financial transaction platforms. Such erosion runs counter to the aspirations of an advanced and digitally empowered "Digital Bharat" and thus warrants a heightened degree of judicial circumspection. These offenses are characterized by their capacity to aggrieve a multitude of victims simultaneously, often with a single act of commission," it said.

The consequences of cybercrimes transcend individual boundaries and imperil numerous unsuspecting citizens, the Court added.

"The gravity of such transgressions cannot, therefore, be understated. They not only jeopardize the financial security and trust reposed by individuals in financial payment gateways and platforms but also inherently expose the broader populace to analogous threats. Indeed, cybercrime in our nation operates akin to a silent virus — insidious, disruptive, and exacting a toll on society that extends far beyond mere pecuniary loss, encompassing the bedrock of trust, security, and natural progress," the Court said.

The present case was registered on directions of the Inspector General of Police, Cyber Haryana, after certain accounts across the State were identified as suspicious.

On investigation, the police found that the address provided for the account was a residential property with no sign of commercial activity. The mobile number linked to it was also found to be invalid. It was opened in name of one Pulkit Bhardwaj but was being run by other people.

Seeking protection from arrest, the counsel for accused Deepak submitted that money was earned on gaming platforms.

"The total transaction volume may appear large but it represents repeated betting of the same amounts and not actual income or profits," the Court was told.

However, the Court opined that the material on record and preliminary investigation appeared to establish a reasonable basis for the accusations.

"It goes without saying that in the instant the petitioner has not demonstrate any legitimate source of income to justify investment of such substantial amount in gaming applications. Given the volume of the transactions totalling to Rs.5,70,48,200/- which are allegedly routed through the account operated by the petitioner, a detailed and thorough investigation is indispensable to ascertain the true nature and origin of the funds," the Court said as it declined to grant pre-arrest bail to the accused.

Advocates Najar Singh and Navmohit Singh represented the petitioner.

Advocate Gurmeet Singh represented the State of Haryana.

[Read Order]