The Delhi High Court has directed major social media platforms to remove hundreds of accounts impersonating Kotak Mahindra Bank and Kotak Securities to stop investment scams. The order requires platforms to disclose operator details to law enforcement, aiming to protect retail investors who have reported significant financial losses.
The Delhi High Court has issued a significant legal order to protect retail investors by directing major social media and technology platforms to remove hundreds of fraudulent accounts. These accounts were illegally using the branding of Kotak Mahindra Bank and Kotak Securities to run investment scams.
Justice Vikas Mahajan issued the injunction on October 14, 2026, targeting platforms including Meta, Google, Telegram, X, and LinkedIn. These profiles were used to solicit funds from the public by promising guaranteed, high returns. This form of digital fraud, often referred to as impersonation, is a growing challenge for financial institutions in India, where scammers misuse trusted brand names to coerce victims into transferring money to unauthorized accounts.
Retail investors reported substantial losses, with individual incidents involving amounts up to ₹10 lakh. The court noted that these scams pose a severe risk to public interest and damage the reputation of the banking institution. As part of the directive, the platforms must disclose the know-your-customer (KYC) documentation, contact information, and government-issued identification of the operators behind these accounts. This data is critical for law enforcement agencies to identify and track the perpetrators.
Beyond simple removal, the court has engaged the Ministry of Electronics and Information Technology and the Department of Telecommunications. These authorities have been ordered to ensure that identified infringing web addresses are blocked across internet and telecom service providers in India.
For investors, this case highlights the increasing importance of verifying the authenticity of communication before transferring funds. Financial institutions, including Kotak Mahindra Bank and its subsidiaries, have frequently warned customers that they do not solicit money via messaging apps or social media channels for private investment schemes. The bank reported over 100 formal customer complaints related to these fraudulent activities.
The defendants in this case have been given a four-week window to respond to the court's directives. The legal proceedings are set to continue before the Joint Registrar on December 7, 2026, with a further hearing scheduled for February 8, 2027. The outcome of these proceedings could set a precedent for how tech platforms manage and prevent the misuse of financial brand identities in the future.