Court Recognizes Prima Facie Case, Issues Preventive Directions to Police and Telecom Operators to Safeguard Against SIM Card Misuse
In a significant judgment delivered on September 29, 2026, the Karnataka High Court dismissed a criminal petition filed by Mallikarjuna, a promoter employed with Jio, who sought to quash the proceedings against him for alleged unauthorized activation and sale of pre-activated SIM cards. The case, registered by HAL Police Station under Sections 406, 419, and 420 of the Indian Penal Code (IPC), revolves around allegations that the petitioner possessed 75 activated SIM cards-55 from Jio and 20 from Vodafone-activated in the names of third parties using their Aadhaar particulars without authorization.
The petitioner contended that he was lawfully entrusted with non-activated SIM cards for sale in his capacity as a promoter of Jio and that he neither activated nor sold the SIM cards unlawfully. However, the prosecution's case, supported by a charge sheet and materials filed before the Court, indicated that the petitioner's possession extended beyond his authorized role, especially considering the Vodafone SIM cards, which he had no employment connection with.
The Court emphasized that while the petitioner's employment explains possession of the Jio SIM cards, it does not account for the activated Vodafone SIM cards or the activation of SIM cards in third-party names without adherence to prescribed procedures. The Area Manager's statement corroborated that promoters receive only non-activated SIM cards and that activation occurs after sale to customers. This raised significant questions about how the petitioner came to possess activated SIM cards and under what circumstances, necessitating a trial to examine these disputed facts.
Rejecting the petitioner's plea for quashing, the Court clarified that the mere possession of SIM cards does not automatically prove all the alleged offenses. Each offense under the IPC requires proof of its specific ingredients such as dishonest intention or fraudulent misappropriation. Therefore, an in-depth trial is required to ascertain the facts.
Importantly, the Court drew attention to the broader systemic risks posed by unauthorized activation and circulation of SIM cards. These cards can be used to establish digital identities, receive one-time passwords, access financial services, and potentially facilitate cybercrimes and identity theft. The unauthorized use of Aadhaar details for activating SIM cards without the knowledge of the legitimate owners poses serious concerns for public safety and cyber security.
To address this, the Court issued detailed preventive directions to the Director General of Police, Cyber Command, Karnataka. These include coordinating with police authorities for prompt investigation of unauthorized SIM card activations, instructing mobile operators like Jio and Vodafone to review and strengthen safeguards around the custody, distribution, and activation of SIM cards, and improving mechanisms for customer verification and complaint redressal. The directions emphasize balancing the need for prevention with respect for legal and privacy requirements.
The Court stressed that these directions are preventive and do not imply any finding of guilt against the petitioner at this stage. The judgment reinforces the necessity of robust institutional safeguards to prevent misuse of SIM cards, while leaving the adjudication of guilt or innocence to the trial court based on evidence.
The petition was dismissed, and the case was scheduled for a compliance report from the Director General of Police, Cyber Command by November 27, 2026.
Bottom Line:
Criminal Procedure - Petition under Section 482 Cr.P.C./Section 528 BNSS for quashing of proceedings alleging unauthorised activation and sale of pre-activated SIM cards - Where charge sheet material disclosed possession of 55 Jio SIM cards and 20 Vodafone SIM cards allegedly activated in names of third parties using Aadhaar particulars, and petitioner's authorised role was only to sell non-activated Jio SIM cards, disputed questions required trial and proceedings could not be quashed - Court also issued preventive directions to Director General of Police, Cyber Command and mobile service operators regarding safeguards against unauthorised activation and circulation of SIM cards.
Statutory provision(s):
Indian Penal Code, 1860 Sections 406, 419, 420; Criminal Procedure Code, 1973 Section 482; Bharatiya Nagarik Suraksha Sanhita, 2023 Section 528
Mallikarjuna v. State of Karnataka, (Karnataka) : Law Finder Doc Id # 3001791
