The Delhi High Court recently provided interim relief to a woman who was defrauded online, nearly losing INR 4.5 crores. The court affirmed the trial court's order, instructing the bank to restore the amount to the woman using its own funds.

The bench of Justice Anoop Kumar Mendiratta held, “Petitioner has been directed to release the cheated amount of Rs. 7,42,558/- and 19,52,577/- respectively to the complainant/respondent no. 2 against execution of indemnity bonds of the same amount in favour of bank”. 

These observations were made in an appeal filed by Yes Bank, which challenged the trial court’s order by citing insufficient balance in the fraudster’s account. The bank informed the court that it had frozen the fraudster's account and was gradually reimbursing victims on a first-come, first-served basis.

The court has decided to review the guidelines for releasing funds stolen by cybercriminals in cases of digital fraud, highlighting gaps in coordination among the Indian Cybercrime Coordination Centre (I4C), police, courts, and financial institutions.

The woman informed the court that she had filed a complaint through the I4C portal. However, Senior Advocate Dayan Krishnan, along with Advocate Rajat Katyal representing Yes Bank, argued that the bank could not access complaints on the I4C portal and was not notified about the FIR registration.

Senior Advocate Dayan Krishnan further argued that only law enforcement agencies have access to the I4C portal and can view online complaints, their own FIRs, and actions taken by various banks, financial intermediaries, and payment wallets.

As a result, the court has scheduled the matter for October 7, 2024.

For Petitioner: Senior Advocate Dayan Krishnan with Advocates Rajat Katyal, Harsh Sinha and Rahul Sambher

For State: Additional Public Prosector Tarang Srivastava

Case Title: Yes Bank Limited v State (Nct Of Delhi) & Anr. (CRL.M.C. 6779/2024)