Delhi HC orders suspension of fraudulent social media accounts in UPSTOX trademark case, freezes bank accounts

In a recent order passed on December 24, 2024, the Delhi High Court addressed the serious issue of trademark infringement and fraudulent activities by the defendant in the ongoing case CS(COMM) 1215/2024. The matter, filed by MS RKSV Securities India Pvt. Ltd. (commonly known as Upstox), highlighted an instance of illegal use of the plaintiff's trademark and copyrighted content by unknown entities.

The Court, presided by Justice Mini Pushkarna, granted urgent relief in favor of the plaintiff. The case revolves around allegations that Defendant No. 1, whose identity remains unknown, has been running fake and fraudulent websites, social media channels, and applications, using the plaintiff’s brand identity and intellectual property to deceive unsuspecting customers in India. These actions, as outlined in the plaint, have caused severe reputational damage and financial loss to the plaintiff, which provides a trusted online trading platform regulated by SEBI and other financial authorities.

The Court, after considering the facts and submissions, stated that “the plaintiff has demonstrated a prima facie case for grant of injunction and in case no ex-parte ad-interim injunction is granted, the plaintiff will suffer an irreparable loss.” The Court directed immediate action to curb these fraudulent practices, passing a series of strict interim orders. Among the key directions:

• Defendant No. 1, its agents, and representatives are restrained from “infringing the plaintiff’s registered UPSTOX trademarks, word marks, and/or any other deceptively similar variant/s thereof.”
• The Court also prohibited the defendant from “using the plaintiff’s original copyrighted photographs of the UPSTOX Brand, by reproducing or publishing the same in any manner.”
• Defendant Nos. 2 to 4, identified as domain name registrars, were ordered to suspend infringing domain names and disclose the registrant details for investigation.

In a detailed order, the Court directed various other parties to freeze bank accounts, suspend UPI IDs, and block social media profiles associated with the fraudulent operations. The move is aimed at halting the defendants' ability to continue their deceptive activities and defraud the public using the plaintiff’s intellectual property.

The Court also granted the plaintiff liberty to take further action if additional infringing domains or accounts are identified during the course of the proceedings. The plaintiff was granted the right to file an affidavit and extend the Court’s orders to any new discovered infringing platforms.

The case will next be heard on May 20, 2025, with the expectation that all involved parties will comply with the Court’s directives and file their replies within the specified timelines.