A Kolkata-based lawyer’s thoughtful gesture of gifting his wife a ‘new’ smartphone turned into a nightmare when Gujarat Police landed at their doorstep, alleging the device was previously used in a major cybercrime racket. The incident has triggered shockwaves in consumer rights circles, highlighting rampant grey market practices and the loopholes in digital device traceability.
The Shocking Sequence of Events
According to sources, advocate Sourav Mitra (name changed) purchased what was described as a sealed brand-new smartphone from a reputed retailer in Central Kolkata to gift his wife on her birthday. However, within two weeks of activation:
- Gujarat Police cybercrime officials tracked the IMEI of the phone to a fraudulent loan scam targeting hundreds of victims across Ahmedabad, Surat, and Rajkot.
- Officers visited the lawyer’s residence, verifying ownership documents, invoice, and activation history to ensure he or his wife were not linked to the crime.
Gujarat Police’s Findings
| Investigation Area | Key Finding |
|---|---|
| Device IMEI trace | Previously activated under a different user ID six months earlier in Surat. |
| Usage history | Used in mass phishing calls and fraudulent loan app installations. |
| Current ownership | Purchased as new by Kolkata lawyer in June 2025 with valid invoice. |
Senior Gujarat Police official said:
“The device was deactivated and reboxed as new by a vendor-distributor nexus to resell in other states. We are tracking the distribution trail.”
How Used Phones Are Sold as New: Grey Market Modus Operandi
Cybercrime experts and industry insiders explained the typical fraud mechanism:
- Device purchased under EMI schemes → used for cybercrime → discarded when flagged.
- Unscrupulous distributors buy such blacklisted phones → erase data and repackage them with duplicate seals and accessories.
- Sold to retailers as ‘excess distributor stock’ with marginal discounts.
- Retailer sells to unsuspecting customers as new, unaware of activation history and legal risks.
Legal and Consumer Rights Implications
| Aspect | Implication |
|---|---|
| Consumer liability | Users can be called for investigation if IMEI links to crimes, despite no involvement. |
| Retailer responsibility | Liable under Consumer Protection Act for selling tampered goods. |
| Distributor/vendor culpability | Offence under IT Act and IPC for fraud and cheating. |
Wife’s Ordeal
The lawyer’s wife, an IT professional, described the ordeal:
“I felt humiliated when police arrived asking if I was part of a cyber fraud. My husband showed them the invoice and explained it was a birthday gift. Thankfully, they were respectful but warned us about grey market sales.”
Action Against Seller and Distributor
Kolkata Police Cyber Cell Steps In
Following Gujarat Police’s request, Kolkata Police cyber cell has:
- Summoned the retailer for questioning regarding purchase source.
- Launched probe into local distributor networks, suspecting counterfeit packaging and IMEI tampering.
- Informed the state GST department, as such grey market activities often involve tax evasion.
Potential Legal Action
| Entity | Possible Charges |
|---|---|
| Retailer | Cheating under IPC Section 420, violating Consumer Protection Act. |
| Distributor | Cyber fraud facilitation, IT Act violations, cheating, and forgery. |
Industry Reaction: Alarming Rise in Such Cases
Mobile phone industry associations note a sharp rise in reboxed phone frauds, especially in metros and Tier-2 cities with high online and offline sales volumes. Major issues include:
- Return fraud: Customers return used phones in near-new condition; unscrupulous sellers repackage them.
- Cross-state grey market sales bypassing brand-authorised distribution.
- Lack of IMEI verification mandates for every sale in the unorganised sector.
Expert Views on the Incident
Cyber law expert Advocate Sushmita Roy said:
“Consumers must check IMEI activation date via brand customer care before purchase. Retailers selling used phones as new are committing clear fraud.”
She urged state governments to enforce IMEI registration at sale points, similar to SIM activation KYC norms.
What Brands Can Do
| Recommendation | Benefit |
|---|---|
| Centralised IMEI status portal for consumers | Users can check activation history before buying. |
| QR-coded tamper-proof seals | Prevents reboxing with counterfeit seals. |
| Strict distributor audits | Curbs grey market and refurbished phone fraud. |
Consumer Tips to Avoid Buying Used Phones as New
- Always buy from authorised brand outlets or official e-commerce channels.
- Check IMEI activation date via customer care before payment.
- Verify warranty status instantly using brand websites or apps.
- Insist on GST invoice mentioning correct IMEI.
- Avoid deals with unusually high discounts or ‘open box’ excuses without verification.
Wider Concerns Over Cybercrime Evidence
Cybercrime officials cautioned that devices used in crimes often remain digitally linked despite formatting. Purchasing such devices can:
- Lead to wrongful suspicion.
- Jeopardise digital privacy due to hidden spyware or malware.
- Cause financial and legal complications for the new owner.
Similar Incidents Reported Across India
| City | Recent Cases |
|---|---|
| Bengaluru | Two youths arrested for selling reboxed second-hand iPhones as new via social media ads. |
| Delhi NCR | Grey market racket exposed selling stolen and used phones after IMEI tampering. |
| Mumbai | Consumer forum penalised retailer ₹1 lakh for selling a returned phone as brand new. |
Conclusion
This Kolkata incident underlines the urgent need for robust regulations, IMEI verification systems, and consumer awareness to combat the reboxed phone fraud menace. While Gujarat and Kolkata police continue their probe into the sellers and distributors involved, legal experts urge brands and governments to act swiftly to protect innocent consumers from legal and financial nightmares linked to cybercrime-tainted devices.
Disclaimer: This news content is for informational purposes only. Readers are advised to verify facts with official police statements and legal experts before making any interpretations or decisions based on this report.
