Patna High Court Takes Serious Note of Flawed Cybercrime Investigation
The Patna High Court has expressed serious concerns about an allegedly mishandled cybercrime investigation in Bihar, where police authorities targeted the escrow account of a mobile payment application company rather than pursuing the actual perpetrators. Justice Arun Kumar Jha's single bench has directed the state government to provide detailed explanations within the next four weeks.
Court Proceedings and Key Directives
During the hearing of a criminal writ petition filed by a Bengaluru-based mobile payment app company on November 20, the court issued significant directives. The order copy became publicly available on Monday, revealing the court's strong stance on the matter.
The court specifically ordered that the Union Ministry of Home Affairs, its competent authority, and the Managing Director of the National Payments Corporation of India (NPCI) be included as necessary respondents in the ongoing writ petition. This expansion of respondents indicates the court's recognition of the case's national importance in digital payment security.
Background of the Cyber Extortion Case
The entire controversy stems from a serious cyber-blackmailing incident involving a Patna-based medical practitioner. The doctor filed an official complaint stating that fraudsters had illegally transferred Rs 29 lakh from his bank account using morphed obscene videos as blackmail material.
Local authorities registered the case under appropriate sections of the Indian Penal Code (IPC) and the Information Technology (IT) Act, 2000 at the cyber police station in Purnia district. However, the investigation took a controversial turn when police actions targeted the payment intermediary instead of the actual criminals.
Legal Arguments and Police Missteps
According to petitioner's counsel Nikhil Agrawal, who presented the company's case before the court, mobile payment applications function strictly as intermediary platforms that facilitate seamless bank transactions for users. These companies are legally required to maintain reserve balances in separate escrow accounts as per Reserve Bank of India (RBI) guidelines to ensure financial security and consumer protection.
Agrawal argued that the Bihar police made a critical error by immediately placing a hold on the company's escrow account without first attempting to trace the location or identify the bank accounts of the actual culprits. Furthermore, the police arranged for the release of Rs 11 lakh from the same escrow account to demonstrate partial recovery of the extorted funds.
The legal counsel emphasized that this approach fundamentally misunderstands the role of payment intermediaries and could set a dangerous precedent for digital payment ecosystems across India.
Broader Implications and Next Hearing
This case highlights the growing challenges law enforcement agencies face in dealing with sophisticated cybercrimes in the digital payment era. The court's intervention underscores the need for specialized training and protocols for police forces handling such technically complex financial crimes.
The matter has been scheduled for its next hearing on January 8, 2026, giving all parties sufficient time to prepare their responses and present their arguments comprehensively. The outcome of this case could potentially reshape how cybercrime investigations involving digital payment platforms are conducted nationwide.
Legal experts following the case suggest that the court's decision to involve central authorities like the Home Ministry and NPCI indicates the recognition that such matters require coordinated efforts between state and central agencies, particularly when they involve nationally regulated financial infrastructure.
