Delhi High Court grants dynamic injunction to TATA against fraud websites using its trademark

The Delhi High Court recently granted a dynamic injunction in favour of two TATA companies, allowing them to directly request domain name registrars (DNRs) to block fraudulent domains which misuse TATA trademark. .The order was passed after TATA Sons Private Limited and TATA Consumer Products moved the Court alleging that fraudsters were using fake websites with TATA trademark and collecting substantial payments from users by offering them non-existent dealership opportunities..Justice Amit Bansal took note the comprehensive nature of the fraud scheme and stressed upon the need to have a multi-layered enforcement mechanism."A review of the evidence filed by the plaintiffs demonstrates that the repeated instances of duping of customers has occurred through domains that have claimed to offer fake dealerships/distributorships and the presence of the trademark TATA along-with the word ‘dealerships'/'distributorships' and/or the word 'consumer' has led innocent public to believe that these are official TATA websites and consequently part with their hard-earned money," the Court observed in its order..In January 2025, TATA had allegedly received multiple complaints regarding fraudulent websites offering fake dealership and distributorship opportunities under the TATA trademark. The fraud operated through a systematic approach where defendants would initially request about ₹25,000 as 'registration fee' from potential victims.Following the initial payment, the fraudsters would demand additional substantial amounts running into lakhs under various pretenses including "Agreement Deposit," "Product Deposit," "NOC Deposit," "Travel," "Renovation & Equipment Deposit," and "Second Stock Purchase Deposit." Once victims made all requested payments, the defendants would cease communication. The Court noted that TATA's investigation had revealed multiple websites operating with identical methods, suggesting a network exploiting the TATA brand to deceive consumers seeking legitimate business opportunities. .The Court thus issued a broad restraining order against John Doe defendants, their employees, servants, agents and representatives, prohibiting infringement of TATA's registered trademarks in any manner. The injunction specifically covers domain names, websites, social media handles, hashtags, email addresses, bank accounts and business papers..The Court directed DNRs to suspend and lock specified domain names within timeframes prescribed under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. .Pertinently, the Court established a proactive enforcement mechanism under which TATA has been allowed to trigger immediate blocking of future fraudulent domains without requiring fresh court proceedings for each violation."In the event the plaintiff comes across domain names in the future which contain the trademark 'TATA' in conjunction with one of more of the words 'consumer', 'franchise', 'franchisee', 'distributor', 'distributorship', 'dealership', 'dealer', the plaintiff are permitted to send a written communication to the relevant Domain Name Registrar, listing out the said domain name and drawing attention to this order and seek locking and suspension of such websites," the Court directed.This injunction could be termed "dynamic plus plus injunction" that anticipates and counters future iterations of the same fraudulent scheme without requiring repetitive litigation..The case is scheduled for further hearing on November 11, with a joint registrar hearing set for September 8 to monitor compliance with service and pleading requirements..Tata was represented by advocates Shwetasree Majumder, Prithvi Singh, Rohan Krishna Seth, Prithvi Gulati and Ritwik Marwaha from Fidus Law Chambers. .The respondents were represented by advocates Krishan Kumar, Nitin Pal and Seemant Garg and Prashant Rawat. Union of India was represented by Government Pleader Prashant Rawat.Central Government Standing Counsel Saumya Tandon and advocate Gaurav Singh Sengar also appeared for the respondents..[Read Order]