MALLIKARJUNA vs THE STATE OF KARNATAKA

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU


TH
DATED THIS THE 29 DAY OF SEPTEMBER, 2026

BEFORE

THE HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

CRIMINAL PETITION NO. 303 OF 2025 (482(Cr.PC) /

528(BNSS)-)

BETWEEN:

MALLIKARJUNA
S/O PARVATA REDDY
AGED ABOUT 25 YEARS
R/AT SRINIVAS MURTHY SHED
TH
8 A CROSS ABBAREDDY LAYOUT
KAGGADASAPURA MAIN ROAD
BENGALURU 560093

…PETITIONER
(BY SRI. VIJAY KUMAR T.,ADVOCATE)

AND:

THE STATE OF KARNATAKA
STATE BY HAL POLICE STATION
REP BY STATE PUBLIC PROSECUTOR
HIGH COURT BUILDING
BENGALURU 560001

…RESPONDENT
(BY SRI. RANJITH KUMAR N., HCGP)

THIS CRIMINAL PETITION IS FILED U/S 482 CR.P.C (U/S 528
BNSS) PRAYING TO QUASH THE ENTIRE PROCEEDINGS IN
CC.NO.26756/2024, FOR THE OFFENCE P/U/S 406,419 AND 420 OF
IPC, REGISTERED BY THE HAL P.S., PENDING ON THE FILE OF THE
III ACJM, BENGALURU, VIDE ANNEXURE-D AND ETC.

THIS CRIMINAL PETITION, COMING ON FOR ADMISSION, THIS
DAY, ORDER WAS MADE THEREIN AS UNDER:











Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:17, Bengaluru
Verified

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CORAM: HON'BLE MR. JUSTICE SURAJ GOVINDARAJ

ORAL ORDER


1. The petitioner is before this Court seeking for the
following reliefs:
a) Please to quash the entire proceedings in
C.C.No.26756/2024 for the offence punishable
under section 406, 419 and 420 of IPC, registered
by the HAL Police Station, same is pending on the
file of the III Addl. CJM at Bengaluru, vide
Annexure-D in the interest of justice and equity.

b) Grant such other relief’s as this Hon’ble Court
deems fit in the facts and circumstances of the
case in the interest of justice and equity.


2. The respondent police, acting on credible
information, registered a suo motu case in Crime No.
247/2022 on 08.09.2022, alleging that the petitioner
had obtained the Aadhaar card numbers and
photographs of customers who approached him for
the purchase of SIM cards and had used the said
particulars to procure the unauthorised activation of
SIM cards. It was further alleged that the petitioner
was attempting to sell the pre-activated SIM cards to
members of the public, thereby attracting the
provisions of Sections 406, 419 and 420 of the
Indian Penal Code, 1860 (IPC).
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:17, Bengaluru
Verified

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3. Upon completion of the investigation, a charge sheet
came to be filed for the aforesaid offences. The case
of the prosecution is that, although the petitioner
was employed as a promoter by Jio, his duties were
confined to selling non-activated SIM cards to
customers, who were thereafter required to complete
the activation process. Contrary to the prescribed
procedure, the petitioner is alleged to have procured
the activation of SIM cards and retained in his
possession 55 SIM cards belonging to Jio and 20 SIM
cards belonging to Vodafone, which he was allegedly
attempting to sell to prospective purchasers at prices
higher than the normal sale price. It is challenging
the said proceedings that the petitioner is before this
Court.

4. The submission of the learned counsel for the
petitioner is that the petitioner was lawfully
employed as a promoter with M/s. Jio and that, in
the course of his employment, he had been entrusted
with 55 SIM cards, which he was selling to third-
party purchasers in the ordinary course of business.
Learned counsel places reliance on the statement of
the Area Manager, examined as CW-8, to contend
that promoters are supplied only with non-activated
SIM cards for sale to customers. Upon activation, the
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:17, Bengaluru
Verified

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company receives information regarding such
activation for billing and other purposes. According to
learned counsel, the said statement would indicate
that the petitioner could not have been in possession
of activated SIM cards registered in the names of
persons whose Aadhaar particulars had allegedly
been misused.

5. Learned counsel for the petitioner further submits
that the petitioner had neither activated the SIM
cards nor independently procured them. His case is
that he had merely retained the SIM cards entrusted
to him by his employer for the purpose of sale. It is
contended that no sale had been completed and that
the SIM cards had not been put to any unlawful use.
On these grounds, learned counsel submits that the
essential ingredients of the alleged offences are not
made out and that the continuation of the criminal
proceedings would, therefore, be an abuse of the
process of law.

6. Per contra, the learned High Court Government
Pleader, has filed a Memo before this Court today,
placing on record the particulars of certain persons in
whose names the SIM cards found in the possession
of the petitioner had allegedly been activated.
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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7. Placing reliance on the memo filed before this Court,
he submits that 55 SIM cards belonging to Jio and 20
SIM cards belonging to Vodafone had been activated
using Aadhaar particulars and other documents
belonging to different individuals. It is contended
that the petitioner was found in possession of 75
activated SIM cards registered in the names of
persons unconnected with him and that such
possession cannot be reconciled with the petitioner's
authorised role as a promoter of Jio. The learned
High Court Government Pleader further submits that
the unauthorised sale of pre-activated SIM cards,
which could potentially be used for the commission of
further offences, constitutes a serious matter
warranting a full-fledged trial.

8. Heard Sri Vijay Kumar T., learned counsel for the
petitioner, and Sri Ranjith Kumar N., learned High
Court Government Pleader for the respondent.
Perused the papers.

9. The short question that arises for consideration is
whether, having regard to the allegations made in
the complaint and the material collected during the
course of investigation, it can be said that no offence
is made out against the petitioner so as to warrant
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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interference by this Court in exercise of its inherent
jurisdiction.

10. It is not in dispute that the petitioner was employed
as a promoter with M/s. Jio and that, in the course of
such employment, he was entrusted with SIM cards
belonging to the said mobile service operator for the
purpose of sale to prospective customers. The
defence of the petitioner is that his possession of the
SIM cards was entirely lawful, being incidental to his
employment, and that he had neither activated the
SIM cards nor committed any act of cheating or
criminal breach of trust. The petitioner further
contends that the statement of CW-8, the Area
Manager, supports his case that promoters are
supplied only with non-activated SIM cards and that
the activation process is undertaken after the SIM
cards are handed over to the customers.

11. The submission, at first blush, appears to proceed on
the premise that the petitioner’s employment with Jio
sufficiently explains his possession of the SIM cards
and, therefore, excludes the possibility of any
criminal conduct. However, the material placed on
record requires consideration of circumstances which
extend beyond the mere possession of SIM cards
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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entrusted to the petitioner in the ordinary course of
his employment.

12. Firstly, the prosecution alleges that the petitioner
was found in possession of 55 SIM cards belonging to
Jio and 20 SIM cards belonging to Vodafone. While
the petitioner’s employment may explain his
possession of SIM cards belonging to Jio, it does not,
at this stage, explain his possession of 20 SIM cards
belonging to Vodafone, a mobile service operator
with which he admittedly had no employment
relationship. The possession of SIM cards belonging
to another service provider, in the circumstances
alleged, is a circumstance which requires
examination and cannot be brushed aside merely on
the ground that the petitioner was authorised to sell
SIM cards belonging to Jio.

13. Secondly, the statement of CW-8 assumes
significance. The Area Manager is stated to have
clarified that the petitioner, in his capacity as a
promoter, was supplied only with non-activated SIM
cards and that the activation process was required to
be completed in accordance with the procedure
prescribed by the company. The said statement,
when read alongside the allegation that the SIM
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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cards recovered from the petitioner had already been
activated in the names of different individuals, raises
a material question as to how such SIM cards came
into the possession of the petitioner and under what
circumstances they were retained by him.

14. If the SIM cards were indeed activated in the names
of persons who had not authorised their activation or
who had no connection with the petitioner, the
circumstances surrounding their activation, custody
and proposed sale would require investigation and
adjudication. The fact that the petitioner was
authorised to sell non-activated SIM cards does not,
by itself, confer authority to possess or distribute
SIM cards activated in the names of third parties
outside the prescribed procedure.

15. Thirdly, the memo filed before this Court furnishes
particulars of persons in whose names certain SIM
cards allegedly found in the possession of the
petitioner had been activated. The significance of this
material lies not merely in the number of SIM cards
allegedly recovered, but also in the question whether
the particulars of the persons in whose names the
SIM cards were activated were obtained, verified and
used in accordance with the prescribed procedure.
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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The use of another person's Aadhaar particulars or
other identification documents without lawful
authority, if established, may have consequences
extending beyond a mere irregularity in the sale of a
SIM card.

16. The contention of the petitioner that he did not
personally activate the SIM cards also cannot, in
isolation, furnish a ground for quashing the
proceedings. The prosecution case is required to be
examined in its entirety, including the circumstances
in which the SIM cards were obtained, whether the
petitioner knew that they had been activated in the
names of third parties, the nature of his dealings
with the persons who supplied or received them, and
whether he had attempted to sell them despite
knowing that they had not been processed through
the prescribed procedure. These are matters which
require consideration of oral and documentary
evidence at trial.

17. At the same time, it is necessary to clarify that the
mere possession of a SIM card, or even the
possession of a SIM card activated in the name of
another person, would not, without more,
automatically establish the commission of every
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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offence alleged in the charge sheet. Each offence
must satisfy its own statutory ingredients. The
prosecution will have to establish the requisite
dishonest or fraudulent intention, the alleged
entrustment and dishonest misappropriation, where
relevant, and the circumstances constituting the
alleged impersonation or cheating. The ultimate
determination must be made on the evidence
adduced before the trial Court.

18. However, the question before this Court at the
present stage is not whether the prosecution has
already established the guilt of the petitioner beyond
reasonable doubt. It is whether the allegations, read
with the material collected during investigation,
disclose circumstances which warrant examination at
trial, or whether the continuation of the proceedings
would amount to an abuse of the process of law.

19. The jurisdiction exercised by this Court to quash
criminal proceedings is intended to prevent abuse of
the process of the Court and to secure the ends of
justice. It is not ordinarily exercised to conduct a
detailed appreciation of disputed evidence, weigh the
credibility of witnesses or determine questions which
can properly be decided only after the parties have
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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had an opportunity to lead evidence. Where the
allegations and the material accompanying the
charge sheet disclose a prima facie case requiring
adjudication, the proceedings ought not to be
terminated merely because the accused offers an
alternative explanation for the circumstances relied
upon by the prosecution.

20. In the present case, the petitioner’s employment
with Jio, the statement of CW-8 regarding the
prescribed procedure for the distribution and
activation of SIM cards, the alleged recovery of SIM
cards belonging to two different mobile service
operators, and the particulars of persons in whose
names the SIM cards were allegedly activated, when
considered cumulatively, raise questions which
cannot be conclusively resolved in these proceedings.
The petitioner’s explanation that he merely retained
SIM cards entrusted to him by his employer is a
matter which may be considered by the trial Court in
the light of the entire evidence.

21. There is a further dimension to the matter which
cannot be overlooked. A SIM card is not merely a
device for accessing a telecommunications network.
It is also capable of being used as an instrument for
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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establishing digital identity, receiving one-time
passwords, registering online accounts,
communicating with financial institutions and
accessing services linked to a mobile number.
Consequently, the unauthorised activation and
circulation of SIM cards in the names of unsuspecting
individuals may expose such individuals to identity
misuse, financial fraud and other forms of
cybercrime.

22. Pre-activated SIM cards, when circulated without the
knowledge or consent of the persons in whose names
they stand registered, may facilitate the concealment
of the identity of the actual user and complicate the
tracing of persons involved in unlawful activities. The
potential for such misuse assumes particular
significance where a substantial number of SIM
cards, belonging to different service providers and
allegedly registered in the names of different
persons, are found in the possession of an individual
whose authorised role is stated to be limited to the
sale of non-activated SIM cards.

23. It is necessary, however, to distinguish between the
potential misuse of such SIM cards and proof that
any particular SIM card has actually been used to
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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commit a further offence. No finding can be recorded
in the present proceedings that the petitioner has
committed cyber fraud or that the SIM cards in
question have been used for any specific unlawful
purpose, unless such facts are established by the
evidence. The concern expressed by this Court is
confined to the systemic risks arising from the
unauthorised activation, retention and circulation of
SIM cards and the need for adequate preventive
safeguards.

24. In these circumstances, this Court is of the
considered opinion that the material placed on record
does not warrant quashing of the criminal
proceedings. The allegations and the accompanying
material require consideration at trial, where the
petitioner will have the opportunity to contest the
prosecution case and establish his defence in
accordance with law. Nothing stated herein shall be
construed as an expression of opinion on the
ultimate guilt or innocence of the petitioner.
Directions concerning unauthorised activation and
circulation of SIM cards

25. Before parting with the matter, this Court considers
it necessary to address the larger issue which
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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emerges from the facts alleged in the present case.
The allegations raise concerns not merely about the
conduct attributed to an individual promoter, but also
about the adequacy of the systems governing the
custody, distribution, activation and monitoring of
SIM cards by mobile service operators.

26. The process of issuing and activating a SIM card
involves the collection and verification of customer
particulars and the establishment of a link between a
mobile connection and the person in whose name it
is registered. The reliability of this process is of
considerable importance to public safety, the
prevention of identity theft and the investigation of
offences involving telecommunications. Any
weakness in the verification or activation process
may permit a mobile connection to be obtained in the
name of a person who is unaware of its existence or
has not consented to its activation.

27. Further, where promoters, distributors or other
intermediaries are entrusted with SIM cards for
commercial distribution, appropriate controls are
required to ensure that the cards remain within the
authorised distribution channel and are activated
only in accordance with the prescribed procedure.
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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The mere issuance of instructions to such
intermediaries may not, by itself, be sufficient unless
supported by appropriate record-keeping,
supervision, verification and mechanisms for
detecting deviations from the prescribed process.

28. The facts alleged in the present case, particularly the
alleged possession of 75 SIM cards belonging to two
different mobile service operators and the assertion
that the cards had been activated in the names of
different individuals, warrant examination of whether
the existing safeguards are adequate to prevent the
unauthorised activation and subsequent circulation of
SIM cards. The matter also calls for consideration of
the measures available to identify suspicious patterns
of activation and to enable persons whose
identification particulars have been misused to obtain
timely information and seek corrective action.

29. Accordingly, the following directions are issued:

29.1. Examination by the Director General of
Police, Cyber Command: The Director
General of Police, Cyber Command, Karnataka,
shall examine the larger issue of unauthorised
activation and circulation of SIM cards and the
potential use of such SIM cards in the
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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commission of cyber-enabled offences. The
examination shall include an assessment of the
manner in which such practices are detected,
the difficulties encountered by the investigating
agencies in identifying the actual users of such
connections, and the measures that may be
adopted to prevent the misuse of SIM cards
registered in the names of unsuspecting
persons.

29.2. Coordination with the jurisdictional police
authorities: The Director General of Police,
Cyber Command, shall consider issuing
appropriate instructions to the jurisdictional
police authorities to ensure that credible
information concerning the unauthorised
activation, possession or distribution of SIM
cards is examined promptly and that, wherever
a cognisable offence is disclosed, appropriate
action is taken in accordance with law.

29.3. The police authorities shall also consider
whether instances involving multiple SIM cards
allegedly activated through the use of third-
party identification particulars disclose a wider
pattern requiring coordinated investigation,
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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subject always to the applicable legal
requirements and the evidence available in
each case.

29.4. Review of safeguards by mobile service
operators: The Director General of Police,
Cyber Command shall issue appropriate
directions to the concerned mobile service
operators, including Jio and Vodafone to the
extent relevant to the facts under
consideration, shall examine the adequacy of
their existing procedures governing the
appointment, authorisation and supervision of
promoters, distributors and other
intermediaries entrusted with SIM cards.

29.5. Such examination shall include the procedures
governing the custody and movement of non-
activated SIM cards, the authorisation of
persons permitted to handle them, the
recording of SIM cards issued to and returned
by intermediaries, and the verification of
customer particulars before activation. The
operators shall also examine whether their
existing systems adequately identify and
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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address deviations from the authorised
distribution and activation process.

29.6. Monitoring of SIM-card inventory and
activation: The Director General of Police,
Cyber Command shall issue appropriate
directions to the concerned mobile service
operators to examine whether appropriate
systems are in place to reconcile the SIM cards
supplied to promoters and distributors with the
SIM cards sold, returned, cancelled or
otherwise accounted for. Such systems should,
to the extent technically feasible and legally
permissible, facilitate the identification of
unexplained discrepancies between SIM cards
issued to an intermediary and those
subsequently activated or otherwise disposed
of.

29.7. The operators to also review the adequacy of
their internal controls for detecting activation
patterns that warrant further verification,
including repeated or unusual activation activity
associated with a particular intermediary, point
of sale or distribution channel. Any such review
shall be undertaken in accordance with
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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applicable telecommunications requirements
and shall not dispense with the need for
verification of the relevant facts before adverse
action is taken against any individual.

29.8. Verification of customer particulars and
prevention of identity misuse: The Director
General of Police, Cyber Command shall issue
appropriate directions to the concerned mobile
service operators to examine whether their
existing customer-verification procedures
adequately guard against the use of
identification particulars without the knowledge
or authorisation of the persons concerned.
Appropriate safeguards shall be maintained to
ensure that activation is undertaken only in
accordance with the applicable customer-
verification requirements.

29.9. Where an operator becomes aware, through a
lawful and sufficiently reliable process, that a
SIM card may have been activated using
another person's particulars without authority,
the operator shall consider the appropriate
verification, correction and remedial measures
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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permissible under the applicable legal
framework.

29.10. Mechanism for customer complaints and
corrective action: The Director General of
Police, Cyber Command shall issue appropriate
directions to the concerned mobile service
operators to examine whether customers have
an accessible and effective mechanism to report
suspected unauthorised activation of SIM cards
in their names. The mechanism should enable
complaints to be recorded, verified and acted
upon within a reasonable period, in accordance
with applicable law.

29.11. The operators shall also consider appropriate
means of informing affected customers of
confirmed unauthorised activations and of
facilitating necessary corrective action,
including the rectification of inaccurate records
and the prevention of further misuse, subject to
the applicable legal and regulatory
requirements.

29.12. Awareness and accountability of authorised
intermediaries: The Director General of Police,
Cyber Command shall issue appropriate
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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directions to the concerned mobile service
operators to consider strengthening the
instructions and training provided to promoters,
distributors and other authorised intermediaries
concerning the permitted handling, sale and
activation of SIM cards. Such instructions
should clearly identify the limits of the
intermediary's authority, the prescribed
procedure for transferring SIM cards to
customers, and the consequences of
unauthorised activation, retention or
distribution.

29.13. The operators shall also examine whether their
existing supervisory and accountability
mechanisms are adequate to detect and
address departures from the prescribed
procedure, without compromising the rights of
employees, promoters or distributors against
whom allegations have not been established.

29.14. Compliance with applicable law: All
measures considered or implemented pursuant
to these directions shall be consistent with the
applicable telecommunications legislation,
directions and regulations, as well as the legal
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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requirements governing the collection,
verification, retention, use and disclosure of
customer identification particulars. Nothing in
these directions shall be construed as
authorising indiscriminate surveillance,
unrestricted access to customer data or
disclosure of personal information otherwise
than in accordance with law.

29.15. Preventive character of the directions: The
above directions are issued with a view to
encouraging appropriate preventive measures
and strengthening institutional safeguards
against the unauthorised activation and
circulation of SIM cards. They shall not be
construed as a finding that the petitioner is
guilty of the offences alleged, nor as a
determination that the SIM cards referred to in
the charge sheet were used to commit any
further offence.

29.16. The competent authorities and the concerned
mobile service operators shall take such steps
as fall within their respective statutory and
regulatory powers. The present directions shall
not be understood as requiring the adoption of
Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru
Verified

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any measure prohibited by law or as displacing
the powers and responsibilities of the
authorities under the applicable legal
framework.

30. In view of the foregoing, the criminal proceedings do
not warrant interference by this Court at this stage.

31. In that view of the matter, this Court passes the
following:

ORDER

i) No grounds being made out, Criminal petition
dismissed
stands .

ii) Though the above petition is dismissed, relist
on 27.11.2026 to report compliance by the
Director General of Police, Cyber Command.
Learned HCGP to inform the Director General of
Police, Cyber Command of the above order.

Digitally Signed By:
SURAJ GOVINDA RAJ
17/10/2026, 13:18, Bengaluru

Verified
(SURAJ GOVINDARAJ)
JUDGE

PRS
List No.: 1 Sl No.: 9