INTRODUCTION
This Compendium consolidates all key developments pertaining to Anti-Corruption, White Collar Crimes & Investigations Practice, which were circulated as JSA Newsletters during the first 2 (two) quarters of 2024 (i.e., from January 2024 to June 2024).
The first two quarters of 2024 have witnessed significant enforcement actions and judicial developments. In addition to multiple arrests, raids and investigations undertaken by the Central Bureau of Investigation ("CBI") and the Enforcement Directorate ("ED"), there are some notable judicial developments with respect to the Prevention of Money Laundering Act, 2002 ("PMLA").
CYBERCRIMES IN INDIA
According to the latest National Crime Records Bureau (NCRB) report of December 2023 there is a 24.4% increase in the number of cybercrime cases registered (65,893 (sixty-five thousand eight hundred and ninety-three) cases) in 2022, as compared to 2021 (52,974 (fifty-two thousand nine hundred and seventy-four) cases).
Further, to strengthen the mechanism to deal with cybercrimes in a comprehensive and coordinated manner, the Central Government, through Ministry of Home Affairs has set up the 'Indian Cyber Crime Coordination Centre' (I4C) to deal with all types of cybercrime in the country. The 'National Cyber Crime Reporting Portal' was launched and operationalised in August 2019, as a part of the I4C, to enable public to report incidents pertaining to all types of cybercrimes, with special focus on cybercrimes against women and children. Cybercrime incidents reported on this portal, their conversion into FIRs and subsequent action thereon are handled by the State/Union Territory law enforcement agencies concerned as per the provisions of the law. The 'Citizen Financial Cyber Fraud Reporting and Management System', under I4C, is launched for immediate reporting of financial frauds and to stop siphoning off funds by the fraudster.
Further, the Minister of State for Home Affairs, in a written reply (dated February 6, 2024) to a question in the Lok Sabha published that more than 1.12 million (one point twelve million) cases of financial cyber fraud were reported on the Citizen Financial Cyber Fraud Reporting Management System in 2023, with Uttar Pradesh reporting highest cases.
Separately, the Indian Computer Emergency Response Team ("CERT-In") (established under the Information Technology Act, 2000 ("IT Act")) functions as the national agency with respect to cyber security incidents and issues alerts and directions/advisories to body corporates in the interest sovereignty and security of India which are mandatory in nature. Data from the latest CERT-In report of November 2023 shows that 13,91,457 (thirteen lakh ninety-one thousand four hundred and fifty-seven) cyber security incidents were reported in 2022, however lower than 14,02,809 (fourteen lakh two thousand eight hundred and nine) in 2021. The number was 2,08,456 (two lakh eight thousand four hundred and fifty-six) in 2018.
Surat City Police launched the nation's first AI-powered chatbot, "Surat Cyber Mitra Chatbot," to combat cybercrime. The chatbot provides instant information, guidance and reporting options related to online fraud and security. Available in Gujarati, Hindi and English, it aims to create a safer digital environment for citizens.
A surge in cybercrime in India
India is grappling with a significant surge in cybercrime, registering an average of over 7,000 (seven thousand) complaints per day up to May 2024. Major cyber fraudsters targeting India are believed to operate from Southeast Asian countries, including Cambodia, Laos and Myanmar. As per media sources, this marks a continued upward trend, with a 113.7% increase in cybercrime complaints from 2021 to 2022 and 60.9% from 2022 to 2023. Further, between January and April 2024, the Indian Cybercrime Coordination Centre received 4,599 (four thousand five hundred and ninety-nine) digital fraud complaints amounting to INR 1,203.06 crore (Indian Rupees one thousand two hundred and three point zero six crore), alongside trading scams worth INR 14,204.83 crore (Indian Rupees fourteen thousand two hundred and four point eight three crore), investment scams totaling to INR 2,225.82 crore (Indian Rupees two thousand two hundred and twenty-five point eight two crore) and dating scams worth INR 132,31,00,000 (Indian Rupees one hundred and thirty-two crore thirty-one lakh), resulting in approximately 10,000 (ten thousand) First Information Report ("FIRs") being filed. Additionally, the World Cyber Crime Index ("WCI"), which highlights the substantial contribution of each nation state to global cybercrime, has placed India in the 10th position. WCI is developed as a partnership between the University of Oxford and UNSW Canberra which ranks countries based on their contribution to global cybercrime. With Russia placed at the top with the world cybercrime index score of 58.39 (fifty-eight point three nine), followed by Ukraine and China, India ranks 10th with a WCI score of 6.13 (six point one three).
7 (seven) new cybercrime police stations in Telangana to combat rising cybercrimes
In response to rising cybercrimes, the Telangana Government has established exclusive cybercrime police stations ("CCPS"), operational from April 2, 2024. These stations will handle cases involving losses of INR 1,00,000 (Indian Rupees one lakh) and above, while smaller cases will be addressed by local police. Each CCPS will be led by a Deputy Superintendent of Police cadre Officer and staffed with sub-inspectors and constables. The Telangana State Cyber Security Bureau will manage high-impact cases involving national security and critical infrastructure, aiming to enhance cybersecurity across the State.
CBI undertakes nationwide search operation against fraudulent application based investment scheme
The CBI in May 2024 undertook nationwide searches ranging across 30 (thirty) locations in 10 (ten) States/Union Territories as part of an ongoing investigation into an app-based fraudulent investment scheme linked to the HPZ Token App. HPZ is an app-based token which promises users high returns through investment in mining machines for Bitcoin and other crypto currencies. Previously, CBI had registered a case under various provisions of the IPC and the IT Act against 2(two) private companies and their directors.
LEGISLATIVE/REGULATORY DEVELOPMENTS
On March 20, 2024, the Government of India ("GoI") notified the Fact Checking Unit ("FCU") of the Press Information Bureau ("PIB") under the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules 2021, with a stated objective of acting as a deterrent to creators and disseminators of fake news and misinformation pertaining to the GoI. Subsequently, the Supreme Court of India ("Supreme Court") stayed the Union Government's notification of the FCU till the Bombay High Court finally decides the constitutional challenge to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Amendment Rules 2023 ("IT Amendment Rules 2023")1. The Supreme Court was hearing a challenge against the Bombay High Court's refusal to stay the notification of the FCU. It observed that the impact of the IT Amendment Rules 2023 on the fundamental right of speech and expression would fall for consideration in the challenge before the Bombay High Court. The decision would also impact social media intermediaries.
Introduction of revamped Penal and Procedural criminal laws i.e., (a) Bhartiya Nyaya Sanhita, 2023; (b) Bharatiya Nagarik Suraksha Sanhita, 2023; and (c) the Bharatiya Sakshya Adhiniyam, 2023 to replace the existing Indian Penal Code, 1860 ("IPC"), Code of Criminal Procedure, 1973 ("CrPC") and Indian Evidence Act, 1872, respectively.
Public Examinations (Prevention of Unfair Means) Act, 2024
The Public Examinations (Prevention of Unfair Means) Act, 2024 ("the Public Examination Act"), enacted by Parliament in February 2024 was officially implemented on June 21, 2024, following its publication in the Official Gazette. The Public Examination Act seeks to prevent the use of unfair means in public examinations and prohibits collusion or conspiracy to facilitate indulgence in any unfair means. This significant development coincides with ongoing concerns over alleged misconduct during examinations such as National Eligibility cum Entrance Test (NEET) and University Grants Commission National Eligibility Test (UGC NET) which thus questions the integrity in public examinations.
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Footnote
1. Editors Guild of India vs. Union of India & Ors. | Special Leave Petition (Civil) No. 6717-6719 of 2024.
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