Impersonation Of Police; Siphoning Of Money: Madhya Pradesh High Court Rejects Bail Of Accused Booked In Digital Arrest Case

The High Court was considering a bail application filed by the applicant under section 483 of the BNSS. The Applicant was arrested on July 3, 2025, in connection with a criminal case registered under Sections 318(4), 308(2), 340(2) of BNS. His earlier application was dismissed as withdrawn.

The Single Bench of Justice Rajesh Kumar Gupta held,“The prosecution case prima facie revealed that the complainant was subjected to a so-called “digital arrest” by impersonation of police and investigating authorities, whereby she was placed under constant threat and psychological pressure and was induced to transfer substantial sums of money on the false pretext of involvement in a black money scam and grant of bail.”

“The record further indicates that a huge amount of money was siphoned off through multiple bank accounts and the investigation with regard to the flow of funds, identification of beneficiaries, and the role of each accused is still at a crucial stage. Cyber offences of this nature involve technical evidence, electronic devices and digital trails, which are susceptible to tampering”, it added.

Advocate Harshvardhan Sharma represented the applicant while Dy. Additional Advocate General Rajendra Singh Yadav represented the State.

Factual Background

It was the case of the prosecution that the complainant received a phone call. The caller alleged that the complainant had spoken obscenely from another mobile number and stated that on this basis, her phone number would be blocked. The complainant denied having engaged in any such conversation. Thereafter, the caller claimed that she would be connected to the Police Station Polo, Mumbai and arranged for the complainant to speak to another person. The caller thereafter informed the complainant that she was allegedly involved in the Naresh Goyal black money scam and stated that a video call would be initiated. Subsequently, a video call was made to the complainant, during which she was threatened with arrest and imprisonment in connection with the alleged black money scam. The complainant reiterated that she had not committed any wrongdoing.

Thereafter, the caller enquired about her age and further stated that he would protect the complainant as a senior citizen and assured her that if no black money was found, then the entire amount would be returned through the Court. Under this inducement and pressure, the complainant and her husband transferred various amounts to different bank accounts. The complainant was kept under so-called “digital arrest”. On June 25, 2025, a bail order was sent to her mobile phone stating that she had been granted bail. Despite this, an additional demand of Rs 10 lakh was made from the complainant. It was in such circumstances that the case came to be registered against the accused.

Reasoning

On a perusal of the facts of the case, the Bench noted that the allegations disclosed the commission of a serious and sophisticated cyber offence.“The manner in which the complainant was allegedly confined digitally and coerced to part with her life savings reflects a well-planned and organized cyber fraud”, it added.

The Bench thus held, “Grant of bail at this juncture may adversely affect the investigation/trial and provide an opportunity to influence witnesses or manipulate electronic evidence.”

Considering the gravity of the offence and the stage of trial, the Bench dismissed the application.

Cause Title: Kuldeep Sharma v. The State of Madhya Pradesh (Neutral Citation: 2026:MPHC-GWL:3080)

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