Court emphasizes need for custodial interrogation to uncover full scope of cyber-crime conspiracy
In a significant ruling, the Delhi High Court on January 21, 2026, denied anticipatory bail to the directors of M/s Lord Mahavira Services India Pvt. Ltd. (LMSIPL), Amardeep Sharma and Arihant Jain, who are accused of obtaining bulk SIM cards through fraudulent means and misusing them for cyber-crime activities. The decision, delivered by Justice Dr. Swarana Kanta Sharma, underscores the seriousness of the allegations and the societal impact of such cyber-crimes, necessitating custodial interrogation of the accused.
The case, registered under FIR no. RC2212025E0016 at the Police Station EO-III Delhi, involves allegations against LMSIPL for procuring over 20,000 SIM cards from Vodafone Idea Ltd. through deceitful tactics. These SIM cards were allegedly used for making fraudulent calls and sending deceptive messages, resulting in financial losses to unsuspecting victims.
The court's order highlighted substantial evidence of the company circumventing the KYC process by providing fabricated end-user details to acquire the SIM cards. The investigation revealed that many of the SIM numbers were linked to cyber-crime complaints, primarily involving fraudulent financial schemes and deceptive messaging.
During the hearing, the prosecution, represented by Special Public Prosecutor Ripudaman Bhardwaj, argued that the accused were central figures in a large-scale conspiracy, exploiting telecom resources for illegal activities. The prosecution emphasized the need for custodial interrogation to unravel the complete modus operandi and the involvement of other facilitators.
On the other hand, the defense contended that LMSIPL had obtained the SIM cards solely for tele-marketing purposes, and any alleged fraud was minimal compared to the company's large-scale operations. They argued that the directors were implicated due to their positions without evidence of direct involvement in fraudulent activities.
Despite the defense's arguments, the court, after examining the investigation material, found substantial evidence pointing towards the conscious involvement of the accused in the fraudulent procurement and misuse of SIM cards. The court noted that the scale of operations and the potential societal impact of the alleged crimes warranted stringent judicial scrutiny and denied the bail applications.
The judgment is a critical step in addressing the growing concerns over cyber-crimes facilitated through the misuse of telecom infrastructure. The court's decision emphasizes the need for careful exercise of discretion in granting anticipatory bail in cases involving serious allegations like large-scale cyber-crimes and financial frauds.
Bottom Line:
Anticipatory bail denied to company directors accused of fraudulent procurement of bulk SIM cards and their misuse in cyber-crime activities, citing seriousness of allegations and need for custodial interrogation.
Statutory provision(s): Bharatiya Nyaya Sanhita, 2023 Sections 61(2), 318(4), 319, Information Technology Act, 2000 Sections 43, 66B, 66C, 66D
Amardeep Sharma v. Central Bureau of Investigation, (Delhi) : Law Finder Doc Id # 2849470
