Lathi-Wielding Officers Can't Chase Hackers With Crypto Wallets: Rajasthan High Court Says Traditional Police System Ill-Equipped for Digital Crimes

“Digital arrest is not a legal concept, but it is very much a dangerous reality,” observed the Rajasthan High Court, as it refused to grant bail to two young men accused of orchestrating a deeply calculated digital crime targeting an 84-year-old couple and extorting ₹2.02 crores. It has now become a judicial manifesto for cybercrime reform in Rajasthan.

“The Police Are Ill-Equipped to Catch What They Cannot Comprehend”: High Court Finds Systemic Collapse in Cybercrime Policing

The case began with the sinister impersonation of cyber police officials. The petitioners, along with co-accused Priya Agarwal and Vikram Goswami, allegedly called the elderly complainant under the guise of cyber officials from Mumbai and falsely claimed that ₹538 crore of fraud had occurred through 230 accounts — one of which belonged to the elderly couple. Under fabricated threats of arrest and prosecution, and what the Court has chillingly referred to as “digital arrest”, the couple was psychologically manipulated into transferring money across nine bank accounts between 30 April 2025 and 8 May 2025.

“This is not a case of petty online fraud; it is a weaponised abuse of digital identity, law enforcement impersonation, and financial terror upon the most vulnerable,” the Court remarked, noting how “₹45 lakh was traced directly to the accounts of the present petitioners.”

When the petitioners denied receiving any such funds, the Court flatly rejected the claim as false. “The bail applications were premised on a lie,” wrote Justice Chirania, referring to two detailed investigative reports submitted by ACP Pushpendra Singh that conclusively mapped the money trail to the accused.

“States Must Stop Leaning on the Centre’s Shoulders Like a Crutch”: Court Says Rajasthan Needs Independent Cyber Policing Framework

What began as a hearing on bail transformed into a full-blown judicial inquiry into the structural failures of the state's cybercrime framework. “Digital crimes are committed at the speed of light, but our systems respond at the speed of paper,” the Court said, lambasting the obsolete skills and tools of the current investigative system.

In a stunning critique of the status quo, the Court pointed out that most investigating officers were “trained to investigate thefts and assaults, not encrypted wallets and cryptocurrency exchanges.” It highlighted how current police officers recruited under conventional systems are “from arts, commerce, and science backgrounds, with zero or negligible understanding of rapidly evolving digital technologies.”

“Even with all the good intentions, a constable with a stick cannot trace a bitcoin trail or decode a deep fake,” the Court said.

“Cybercrime Is Not Just an IT Problem—It’s a Public Safety Emergency”: Court Lists National-Level Data, Paints Grim Picture

Referring to the 254th Parliamentary Standing Committee Report tabled on 20 August 2025, the Court pointed out the exponential rise in cybercrime complaints. “From 26,000 complaints in 2019, India saw over 20 lakh in 2024. Yet, FIRs remain a trickle, with only 49,532 registered.”

The Court found this unacceptable. “If this is how cybercrime is dealt with, then the trust of the citizen in law enforcement will be the next casualty,” it warned.

The judgment also referred to the Citizen Financial Cyber Fraud Reporting and Management System, noting that of the ₹21,181 crores reported as cyber frauds in 2024, lien could only be created on ₹2,530 crores. “The rest,” the Court noted, “vanished across digital tunnels and international wallets, untraced and unpunished.”

"Cyber Police Cannot Be an Afterthought": Court Orders Creation of Rajasthan Cyber Crime Control Centre (R4C)

Taking the reins in its own hands, the High Court laid out a sweeping reform blueprint that includes:

• Establishment of Rajasthan Cyber Crime Control Centre (R4C) on the lines of I4C of the MHA, with powers to investigate, coordinate, and prosecute independently.

• Appointment of IT-qualified Inspectors exclusively for cybercrime units, who shall not be transferred to traditional policing duties. “We cannot train farmers to fly jets — we must recruit pilots,” the Court said.

• Mandatory forensic lab accreditation under Section 79A of the IT Act, with a strict 30-day limit for digital evidence analysis.

• Creation of a separate toll-free number and FIR auto-registration system by 01 February 2026 for cybercrime complaints within Rajasthan, functioning independently from the Centre’s 1930 helpline.

• Mandatory AI tools for banks to detect mule accounts and block suspicious transactions. “If fintech can innovate crime, banks must innovate defence,” the Court added.

The Court called for daily transaction monitoring, regulation of SIM card issuance, mandatory registration of gig economy workers, and even directed that all children under 16 must be governed by mobile phone use policies in coordination with schools and parents.

“This Court is Not Just Denying Bail—It is Issuing a Wake-Up Call to the State Machinery”: Judiciary Invokes Constitutional Duty

Justice Chirania observed that cybercrime is no longer just a digital issue; it is a constitutional concern involving Article 21 rights of safety, dignity, and freedom from fear.

“The State must stop functioning in silos. It must establish a 360-degree digital defence infrastructure covering banks, telecom, education, e-commerce, and social media. Until now, we’ve only patched a leaking roof. It's time to rebuild the house,” the Court wrote.

“Digital Colonialism by Criminals Is Not a Hypothesis, It's Here”: High Court Asks Rajasthan to Lead the National Charge

With an increasing number of districts like Mewat becoming digital crime hubs, the Court acknowledged certain positive steps like Operation Cyber Shield but maintained that “random crackdowns and isolated FIRs are no substitute for institutional transformation.”

The Court appreciated the contribution of DGP Rajeev Kumar Sharma, ADG (Cyber) Mr. Sachin Mittal, Commissioner Om Prakash, AAG Mr. Deepak Choudhary, and Amicus Curiae Mr. Nisheeth Dixit, but made it clear: “Appreciation is not enough. Action is essential.”

“When Law Enforcement Lags Behind Hackers, Justice Must Take the Lead”: A Judgment That Redefines Judicial Role in Digital Era

In conclusion, the Court dismissed the bail applications of Adnan Haidar Bhai and Rahul Jagdish Bhai Jadhav, citing their direct involvement in the extortion, confirmed financial trails, and the sensitive stage of investigation. More importantly, the Court chose this moment to create a vision for Rajasthan’s future — one that is digitally secure, institutionally prepared, and no longer reliant on Delhi for every cyber SOS.

"This judgment is not the end. It is the beginning of a necessary transformation," wrote Justice Chirania as he signed off on what is likely to be one of the most significant cyber law rulings by any High Court in India.

Date of Decision: 27 November 2025