An Ahmedabad-based company, Collective Trade Links Pvt Ltd, has won a significant case against ICICI Bank and Vodafone Idea due to a SIM card fraud incident. The company lost ₹1.2 crore in March 2023 when cybercriminals executed a series of unauthorized transactions from their account. In a landmark ruling by Mona Khandhar, the Principal Secretary of the Gujarat Government’s Department of Science and Technology, ICICI Bank was ordered to refund ₹1.05 crore and pay a ₹10 lakh penalty within six weeks. Vodafone Idea was also fined ₹5 lakh for issuing a duplicate SIM card without proper verification.
The fraud occurred on March 12, 2023, while the company’s director, Prakash Mehta, was travelling in Vietnam. Fraudsters had managed to obtain a duplicate SIM card for his number by sending a suspicious email to Vodafone Idea. This email led to the issuance of a new SIM card without the necessary checks, violating TRAI guidelines.
The cybercriminals then conducted 22 unauthorized transactions totaling ₹1.19 crore from the company’s account. After discovering the theft, the accountants reported it to the police, and Mehta filed a complaint against both the bank and the telecom operator.
Both ICICI Bank and Vodafone Idea denied any wrongdoing. ICICI Bank argued that it had cooperated with the investigation and was not liable for the loss, while Vodafone Idea stated that the allegations lacked sufficient detail.
However, the adjudicating officer found that both companies exhibited negligence. The order noted that Vodafone Idea’s store manager in West Bengal was complicit in issuing blank SIM cards, bypassing verification protocols. The bank was criticized for failing to exercise due diligence when adding new beneficiaries and approving high-value transactions without proper verification.
In addition to the financial penalties, both companies were instructed to conduct internal vulnerability checks within three months. ICICI Bank must also upgrade its Information and Communication Technology systems within six months to prevent future incidents.
Cyber Crime Cell’s DCP, Lavina Sinha, called this ruling a landmark judgment, highlighting the importance of accountability in digital transactions. This case sets a precedent for how financial and telecom companies must handle customer data and security protocols to protect against fraud.
As the reliance on digital transactions continues to grow, this ruling serves as a reminder for companies to ensure stringent verification processes. The public can expect both ICICI Bank and Vodafone Idea to take these measures seriously, given the scrutiny they now face following this significant ruling.