If you are stuck in such a situation, here is what to do.

A young individual sought advice regarding a financial transaction that has turned sour. On March 10, 2023, he transferred ₹25,000 to his friend, Rohan, with the understanding that the money would be passed on to Rohan’s acquaintance, Sameer. Sameer and his mother were supposedly involved in an informal investment scheme that promised good returns. The transfer was made via a UPI app, and the individual has proof of payment to Rohan.

Initially, things seemed fine. However, after a month, when the promised interest was due, Rohan reported that Sameer would pay the principal and interest together at a later date. Several months passed with no communication. The individual then contacted Sameer directly, who offered various excuses before eventually ceasing all communication and ghosting both the lender and Rohan.

In an attempt to recover the funds, the individual contacted Sameer’s mother. This led to an emotional conversation but no resolution. Shortly after, Sameer called, yelling and admonishing him for contacting his mother. During this call, Sameer acknowledged the debt and asked for more time. However, he again became unresponsive. When pressed for payment, Sameer sent a threatening voice note, warning he would file a complaint with the cyber crime unit if contacted again.

Frustrated, the lender pressured his friend Rohan to intervene. Rohan claimed that when he met Sameer to discuss the matter, Sameer became aggressive and slapped him. Now, almost a year later, Sameer remains uncontactable, and the money is still outstanding. The lender has the phone numbers for Sameer and his mother, and through Rohan, knows the location of Sameer’s paying guest accommodation and the college he attends. He is hesitant to approach the police directly, fearing they might not take a case involving a relatively small amount seriously, and is considering sending a legal notice as the first step.

Advice in such cases

Navigating such a situation requires a calm and strategic approach. The combination of a friendly loan, a third-party involvement, and subsequent threats complicates the matter, but there is a clear legal path forward.

• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Send a Legal Notice: This is an excellent first step. A legal notice, drafted and sent by a lawyer, is a formal communication demanding payment. It demonstrates your seriousness and intent to pursue legal action. Often, the recipient will settle the matter to avoid litigation.
• File a Civil Suit for Recovery: If the legal notice is ignored, you can file a civil suit for the recovery of your money. Given the digital proof of transfer and chat acknowledgements, you have a strong case.
• Initiate Criminal Proceedings: Sameer’s actions may constitute criminal offenses. The initial promise of high returns could be seen as an inducement for cheating, and his subsequent threat to file a cyber complaint is a clear act of criminal intimidation.

Applicable Sections of Law

Your case involves aspects of both civil and criminal law. The relevant legal provisions under the new Indian laws are:

• Section 316 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section deals with cheating. If it can be established that Sameer had a dishonest intention from the beginning and never intended to return the money, a case of cheating can be made out.
• Section 351 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section pertains to criminal intimidation. Sameer’s threat to file a false cyber crime complaint against you for asking for your own money back falls squarely under this provision.
• The Code of Civil Procedure, 1908: You can file a Summary Suit under Order XXXVII for recovery of money, which is a faster procedure for cases where the debt is proven through written or digital contracts.

If you are the complainant

As the person who has been wronged, you should take the following steps:

• Organize Evidence: Compile all your evidence neatly. This includes UPI transaction screenshots, chat histories with both Rohan and Sameer, and the threatening voice note from Sameer. Every piece of digital communication is a crucial part of your case.
• Do Not Engage Further: Avoid any further direct communication with Sameer or his mother. Let all future correspondence be handled by your legal counsel to prevent any missteps.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in a domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.
• Decide the Course of Action: Based on your lawyer’s advice, decide whether to start with a legal notice, file a civil suit, or lodge a criminal complaint. Pursuing both civil and criminal remedies simultaneously is also an option.

If you are the victim

As the victim of this financial and emotional ordeal, it is vital to act methodically:

• Maintain Composure: Do not resort to public shaming on social media or physical confrontation. Such actions can weaken your legal position and potentially expose you to counter-complaints.
• Document Everything: Keep a detailed timeline of events, from the date of the transfer to the last communication. This will be invaluable for your lawyer.
• Secure Your Friend’s Cooperation: Your friend Rohan is a key witness. His statement confirming he acted as a conduit for the money and his own interactions with Sameer, including the alleged assault, are vital. Ensure he is willing to cooperate in legal proceedings.
• Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

How the police behave in such cases

Your concern about the police’s response is valid. Often, in cases involving money disputes between individuals, the police may initially direct the parties to a civil court, viewing it as a breach of contract rather than a criminal offense. However, the presence of clear criminal elements like cheating and intimidation changes the scenario. A complaint drafted by a lawyer that clearly articulates the offenses under the BNS is more likely to be taken seriously. An FIR can be registered under Section 173 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Your lawyer can also approach senior police officials or the magistrate’s court if the local police station is uncooperative.

FAQs people normally have

Can I take legal action without a formal written loan agreement?

Yes, absolutely. In the digital age, electronic records are admissible as evidence. Your UPI transaction proof, combined with WhatsApp or text messages where the loan is acknowledged, serves as strong proof of the debt.

What if the person I lent money to lives in a different city?

You can initiate legal proceedings in the jurisdiction where the cause of action arose. This could be where you reside and made the bank transfer from, or where the recipient resides. Your lawyer will advise on the most appropriate jurisdiction.

Is it worth the legal fees for recovering ₹25,000?

This is a personal decision. However, pursuing the matter legally is not just about recovering the money; it’s about holding the individual accountable for their fraudulent and intimidating actions. A legal notice is a cost-effective first step that often yields results without the need for a full-blown court case.

What evidence is required?

To build a strong case, you will need the following evidence:

• Proof of Transaction: A screenshot or bank statement of the UPI transfer to your friend, Rohan.
• Communication Records: All chat logs (SMS, WhatsApp, etc.) with both Rohan and Sameer. Crucially, any message where Sameer acknowledges receiving the money or promises to repay it.
• Threatening Evidence: The voice note where Sameer threatens you is a powerful piece of evidence for a criminal intimidation charge.
• Witness Testimony: A statement from your friend Rohan detailing his role and his subsequent interactions with Sameer, including the alleged physical assault.
• Contact Information: Details like phone numbers and known addresses (even a PG address) are important for sending legal notices and for the authorities to locate the individual.

How long will the investigation take?

The timeline can vary significantly based on the path you choose:

• Legal Notice: The notice itself will typically give the recipient 15 to 30 days to comply.
• Criminal Complaint: If an FIR is filed, a police investigation can take a few months, depending on the complexity and cooperation of the parties involved.
• Civil Suit: A summary suit is designed to be faster than a regular civil suit. However, even a summary suit can take several months to a year to be resolved, especially if the other party contests it. A regular civil suit can take longer.

Advocate Sudhir Rao, Supreme Court of India