Court Directs Intermediaries to Remove Infringing Content and Block Fake Websites Within Specified Timelines
In a significant ruling, the Bombay High Court has granted interim relief to DBS Bank India Ltd. against unknown fraudsters impersonating its officials and misusing its corporate identity to commit financial fraud. The court has directed intermediaries, including social media platforms like WhatsApp, to comply with the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, by removing fraudulent content and blocking dubious profiles and websites.
The judgment, delivered by Justice Sharmila U. Deshmukh, highlights the rampant misuse of DBS Bank's corporate name by unidentified individuals who have been impersonating bank officials and misleading the public into making substantial investments through fake websites and WhatsApp groups. The modus operandi involved deceiving victims by creating fraudulent profiles and websites, complete with forged documents such as identity proofs and SEBI certificates, to feign legitimacy.
DBS Bank, represented by Senior Advocate Dr. Birendra Saraf, brought to the court's attention several incidents where victims were duped into investing large sums of money, including a case where a retired police officer attempted suicide after being swindled out of Rs. 8 crores. The bank sought immediate intervention to prevent further loss and damage to its reputation.
The court underscored the duty of intermediaries to maintain due diligence and promptly act upon complaints as stipulated under the IT Rules, 2021. It ordered the removal of infringing content and the blocking of fraudulent accounts and websites within specified timelines to mitigate the risk of financial fraud.
Justice Deshmukh also emphasized the necessity for intermediaries to set up robust grievance redressal mechanisms to proactively safeguard against such fraudulent activities. The court allowed DBS Bank to provide evidence and identify infringing content for swift action, granting liberty to intermediaries to require court directions for disabling content not covered by the ruling.
The interim relief granted includes restraining the fraudsters from misusing DBS Bank's corporate name and impersonating its officials. It also directs intermediaries to disclose subscriber information of the fraudsters and suspend/block domain names of fake websites impersonating DBS Bank.
This judgment sets a precedent for enforcing strict compliance with intermediary guidelines to protect corporate entities from cyber fraud and underscores the role of digital platforms in curbing misuse and maintaining the integrity of legitimate businesses.
Bottom line:-
Passing off action under trademark law - Interim relief granted against misuse of corporate name and impersonation by fraudsters using WhatsApp groups and fake websites. Intermediaries directed to comply with IT Rules, 2021 for removal of infringing content and blocking fraudulent accounts and websites.
Statutory provision(s): Information Technology Act, 2000, Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021, Trademark Law
DBS Bank India Ltd. v. John Doe(s)/Ashok Kumar(s), (Bombay) : Law Finder Doc id # 2891323
