'Why Does Telecom Ministry Permit Multiple Prepaid SIMs In One Name?': Punjab & Haryana HC Suggests Govt To Restrict Issuing Multiple Prepaid SIMs To Curb Cyber Crime

The Punjab & Haryana High Court has flagged absence of Governmental measures restricting individuals to a single pre-paid SIM card, observing that cyber criminals are regularly misusing multiple SIM cards "to perpetuate their nefarious deeds."

Justice Anoop Chitkara said, "Why does the Ministry of Telecommunication permit individuals, firms, or companies to acquire multiple prepaid SIM cards under their name? Given the Aadhar Card is exclusively linked to a single SIM card for OTP generation, there seems to be no justification for the issuance of multiple prepaid SIM cards."

"Restricting pre-paid SIM cards to one per individual is likely to significantly mitigate cybercrime. Therefore, if the Ministry of Telecommunication, Government of India, implements such a restriction, it could effectively curb cybercrime incidents, consequently reducing financial fraud and the exploitation of individuals and their assets, and India's image," added the Judge.

The Court further suggested that, to address the issue of multiple SIM cards, the Ministry of Telecommunication could provide a window for telecom service providers to validate a single SIM card linked to an Aadhar card. "Furthermore, SIM card holders could be given the option to convert this validated SIM card into a post-paid one, with a directive for service providers to disconnect all other prepaid SIM cards by a specified deadline," it added.

It highlighted that, according to reports, cybercrime predominantly takes place through prepaid SIM cards rather than post-paid SIM cards or landlines. As the executive has largely been unsuccessful in curbing the escalating threat of cybercrime, one potential immediate solution could involve limiting the maximum number of prepaid SIM cards per individual. Furthermore, these prepaid SIM cards could be programmed to automatically disconnect upon the individual's death being recorded in official records.

The Court also clarified that, imposing restriction to posses only one prepaid SIM card would not be  violative of fundamental rights.

"This assertion is bolstered by the fact that individuals retain the option to acquire post-paid SIM cards and landlines, which are issued by companies only following thorough verification procedures," it added.

"Given the magnitude of cyber-crime and its propensity," the Court impleaded Union Government, Ministry of Telecommunication, Government of India.

The development came after the Court found that in the name of a man accused of committing cyber crime under Sections 420, 201, 120-B IPC, over 35 SIM cards were issued, who has been "taking advantages from the vulnerabilities emerging from the unrestricted issuance of multiple SIM numbers."

It prompts scrutiny as to why there is absence of Governmental measures restricting individuals to a single pre-paid SIM card, and the rationale behind permitting the issuance of prepaid SIM cards to entities such as firms, associations, organizations and companies, the Court said.

It observed that, "In India, citizens contend with the pervasive threat of cybercrime, leading to a heightened sense of vigilance and caution. This apprehension has led majority of people to refrain from answering calls from unfamiliar numbers, even when such communication may be necessary. The prevailing fear extends to the use of Internet and mobile banking services, as individuals seek to safeguard themselves against potential cyber fraud. Consequently, this apprehension poses challenges as individuals strive to keep pace with the rapid advancements in technology and global connectivity."

Cyber Crime Tarnishing India's Image Globally

The Court highlighted that, "cybercriminal activities have led to a global tarnishing of India's reputation, particularly through fraudulent operations conducted from Indian soil, targeting people overseas. These encompass a range of scams such as counterfeit tech support services, fraudulent Amazon and gift card schemes, insurance fraud, courier frauds, and the unlawful conversion of cyber proceeds into cryptocurrencies like Bitcoin. Notably, a considerable proportion of these illicit endeavours are orchestrated via mobile devices."

Disturbingly, reports suggest that these actors obtain prepaid SIM cards under not only their own identities but also those of unwitting individuals, often through deceitful means or even by remunerating for SIM card usage. Consequently, innocent individuals whose identities have been impersonated for obtaining these prepaid SIM cards frequently find themselves implicated as primary suspects, it added.

Firms, Companies Should Only Be Issued Postpaid SIM Cards

The judge suggested that the firms, companies, and organizations should be prohibited from retaining prepaid SIM cards; instead, they should be permitted to acquire postpaid numbers.

"The Central Government has the authority to limit individuals traveling to India to only one prepaid Indian SIM card linked with either a Passport or Aadhar card, while unrestricted post-paid numbers remain available. Typically, the individual whose name or number is associated with post-paid services settles the bill through digital wallets, net banking, or credit cards, creating a financial trail that connects them to the phone number usage," added the Court.

In the present, the Court rejected the plea to grant interim-bail to the accused observing that, "on the face of it, such a massive number of SIM cards points out the petitioner's involvement in cybercrime."

While listing the matter for July 01, the Court directed to "carry out further investigation regarding such SIM cards and their usage within the territory of the State of Haryana."

"In the entirety of facts and circumstances, let the concerned Investigator also conduct an inquiry/further investigation in this regard and file an additional status report," the Court directed.

Title: SUMIT NANDWANI V/S STATE OF HARYANA

Mr. Vikas Arora, Advocate for the petitioner. 

Mr. Rajat Gautam, Addl. A.G., Haryana.

Mr. Sandeep Lather, Advocate for the complainant.

Click here to read/download the order