Digital Arrest Victim Cannot Escape Loan Repayment, Madhya Pradesh High Court Rules
Indore (Madhya Pradesh): Being duped in a “digital arrest” scam does not, by itself, wipe out a borrower’s liability to repay a bank loan, Indore bench of Madhya Pradesh High Court has ruled while dismissing a petition filed by a woman who sought to stop recovery proceedings against her. Justice Sandeep N Bhatt said the court had sympathy for the petitioner, who was allegedly a victim of a…
In a recent ruling, the Indore bench of Madhya Pradesh High Court dismissed a petition filed by a woman seeking to halt recovery proceedings against her for a bank loan. The woman, Shreya Tayal, alleged that she had been a victim of a "digital arrest" scam, where cyber fraudsters impersonated a cybercrime officer and falsely accused her of involvement in a money-laundering case.
The court, while expressing sympathy for Tayal, ruled that this incident did not absolve her of the obligation to repay the loan. The bank had advanced the loan through Tayal's credit card, and she had used the facility to make payments to the scammer. Despite the bank's efforts to verify the transaction and the fact that the matter had been considered by the Banking Ombudsman, the court upheld the bank's right to recover the loan amount.
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