Delhi HC notes misuse of well-known business names for online fraud; seeks police report

The Delhi High Court has taken note of several instances of registration of domain names under the marks of well-known businesses for carrying out online fraud and sought a status report from the police here concerning its investigation in such cases.

Justice Prathiba M Singh noted that the websites under these domain names are being used for hosting fraudulent websites under the garb of offering jobs, dealerships, franchisees, lucky draws, etc and several cases concerning this malpractice were pending before different benches of the high court.

While asking the Delhi Police to continue its probe, the court directed that all such cases be listed before the same bench while opining that comprehensive directions may be required to be issued to the police authorities, cyber cells, the various banks, National Payment Corporation of India, Reserve Bank of India, etc and the investigation needed to be consolidated.

“It has also been brought to the notice of this court that there are a number of cases before the court where fraudulent domain names are being registered under the marks of well-known and established business houses and their brands. The said domain names are being used for hosting fraudulent websites with details of bank accounts under the garb of offering jobs, dealerships, franchisees, lucky draws, and various other illegal activities,” said the court in its order dated July 20.

“The Cyber Crime Unit, Special Cell, Delhi shall continue the investigation in these matters. Let a further status report be submitted in respect of the said investigation, on the next date of hearing,” the court said.

The court's directions were passed on a lawsuit by Fashnear Technologies Private Limited seeking a permanent injunction to restrain certain fraudulent websites from unauthorizedly using its trademark –'Meesho'-- to defraud and dupe unsuspecting and gullible members of the general public.

The plaintiff alleged that under the pretext of a fake lottery win, the defendants' induced gullible people to submit their bank account details and pay advance charges to receive the prize amount or to avail of gifts such as cars, motorbikes, cash prizes, electronics, etc.

While asking the Delhi Police to continue its investigation in the present matter, the court directed the suspension of three fake online marketplaces by the Domain Name Registrar (DNR) and the blocking of their domain names by the concerned authorities till further orders.

The contact details of the persons who have registered the domain names shall be handed over by the DNR to facilitate further police investigation and all the concerned banks shall further ensure that the bank accounts connected to the said three domain names are frozen and blocked, the court ordered.

It further directed the DNR not to register any domain names containing the mark 'Meesho', saying that the direction was being passed under “extenuating circumstances” where several vulnerable persons were being duped of huge sums of money.

“This Court has perused the status report submitted by the Cyber Crime Unit and is convinced that the Plaintiff's well-known mark 'MEESHO' is now being used by fraudulent persons, who carry out illegal activities over the internet,” the court said.

“Several bank accounts are being publicised on such domain names/websites, and in one such account, a total transaction of more than Rs.53 lakhs was found by the Cyber Crime Unit and an amount of only Rs79 was found to be remaining as the balance amount. Thus, domain name registration is becoming a tool for such persons to collect monies through illegal means. It is under these circumstances that the present order has been passed in respect of the DNR,” the court added. Police in its status report told the court that a detailed investigation was already underway after the registration of an FIR and there were other cases where fake accounts had been created in the names of well-known business houses.

It informed that a Special Investigation Team ('SIT') was constituted collectively in respect of four similar cases by the Cyber Crime Unit, Delhi Police, which is referred to as Intelligence Fusion and Strategic Operations.

The court said in its order that the Cyber Crime Unit was free to approach the National Payments Corporation of India and the concerned banks for its investigation and listed the case for further hearing in August.