Mr. Sameer and his five friends were residing in an apartment in Pragati City, which was managed by a company named ‘Swift Homes PG’. They had a formal agreement with Swift Homes and had paid a security deposit equivalent to two months’ rent. A few months ago, the actual owner of the building, Mr. Gupta, informed them that Swift Homes had defaulted on rent payments to him for several months and that the PG arrangement was being terminated.

To avoid eviction, Sameer and his friends came to a new understanding directly with Mr. Gupta to continue living there and pay rent to him. The problem arose with their security deposit, which was still with Swift Homes, a company known for not returning deposits. When a representative from Swift Homes came to collect their furniture, the tenants refused, stating that the furniture would only be returned after their total deposit of approximately ₹1,20,000 was refunded. They held the furniture as leverage to secure their funds.

Recently, the owner of Swift Homes, Mr. Sharma, called Sameer, demanding rent for the furniture they had used for the past few months. Sameer reiterated their stance: the deposit must be paid first. The very next day, Sameer received a call from a Sub-Inspector from the local police station, summoning him regarding a complaint filed against him. The officer confirmed the complaint was from Mr. Sharma but refused to provide any further details over the phone, insisting that Sameer appear at the station without fail. This situation, where a civil dispute is being given a criminal color, is quite common and requires careful handling.

Advice in such cases

Receiving a call from the police can be intimidating, but it is crucial to handle the situation calmly and strategically.

• Stay Calm: Do not panic. The police are often used as a tool to intimidate parties in civil disputes. Understand your rights and the nature of the issue.
• Gather All Documents: Collect every piece of paper related to your tenancy, including the agreement with the PG company, receipts or bank statements showing the deposit payment, and any written communication (WhatsApp, emails) with the PG owner or the building owner.
• Do Not Admit Fault: On the phone or in person, do not admit to any wrongdoing. Simply state that you will cooperate with the inquiry. Your actions are based on a legitimate financial dispute.
• Anticipate the Allegations: The complaint is likely an attempt to frame a civil matter as a criminal one, possibly alleging theft or criminal breach of trust. Being prepared for this is key.
• Consult with a 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.

Applicable Sections of Law

This is fundamentally a civil dispute regarding a breach of contract (failure to return a security deposit). However, the complainant may try to invoke criminal law to apply pressure. Here are the relevant legal perspectives:

• Civil Nature: The core of the issue is the non-refund of a security deposit, which is governed by the terms of your rental agreement and general contract law. The appropriate remedy for the tenants is to file a civil suit for the recovery of money. Similarly, the PG owner’s remedy for getting his furniture back is a civil suit for the recovery of property.
• Potential Criminal Allegations (BNS): The PG owner might have filed a complaint under sections of the Bharatiya Nyaya Sanhita, 2023 (BNS).
  • Section 316 – Criminal Breach of Trust: This section applies when someone entrusted with property dishonestly misappropriates it. However, in your case, the refusal to return the furniture is not with dishonest intent but to secure your own money, which is a bona fide civil claim. This is a strong defense.
  • Section 303 – Theft: This is unlikely to apply as you had lawful possession of the furniture as part of the PG arrangement. The issue is about wrongful retention, not dishonest taking.
• Police Role: The police’s primary role is to investigate criminal complaints. As per Supreme Court judgments, police are discouraged from interfering in matters that are clearly civil in nature. However, they are obligated to conduct a preliminary inquiry when a complaint is filed.

If you are the complainant

If you are in the PG owner’s position and your property is being held, using the police should not be the first step.

• Issue a Legal Notice: The first formal step should be to send a legal notice through a lawyer demanding the return of your property and settling any financial dues.
• File a Civil Suit: The correct legal path is to file a civil suit for the “recovery of specific movable property.”
• Avoid Criminal Complaints: Filing a false or frivolous criminal complaint to settle a civil score can lead to legal consequences for you, including a case for malicious prosecution.
• Consult with a 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.

If you are the victim

If you are in Sameer’s position (the tenant who has been summoned), here is how you should proceed.

• Do Not Ignore the Summons: Ignoring a police call is not advisable. It can be construed as non-cooperation.
• Attend with Your Lawyer: It is highly recommended to have your lawyer accompany you to the police station. A lawyer’s presence ensures your rights are protected and that the conversation stays focused on the legal facts.
• Present Your Case Clearly: Explain to the police officer that this is a civil dispute concerning a non-refunded security deposit. Show them the documents (agreement, payment proof). State that you are willing to return the furniture as soon as your deposit is cleared.
• File a Counter-Complaint: You also have the right to file a complaint against the PG owner for criminal breach of trust for not returning your security deposit. You can also file a civil suit for the recovery of the deposit amount along with interest and damages.
• Consult with a 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

Police officers are generally experienced in identifying civil disputes disguised as criminal ones. Often, their goal is to mediate a settlement to avoid formal proceedings. They might call both parties to the station and try to broker a compromise. However, you should not feel pressured to agree to an unfair settlement. Stand your ground politely and insist on your legal rights. If the police officer appears biased or tries to harass you, you have the right to complain to their superior officers or the Superintendent of Police.

FAQs people normally have

What evidence is required?

The most crucial part of defending yourself is having strong documentation. You will need:

• The original rental/PG agreement.
• Proof of security deposit payment (bank statement, UPI transaction record, or a signed receipt).
• Any communication with the PG owner about the deposit refund (WhatsApp chats, emails, call recordings if legally permissible in your state).
• A list of the furniture being held and its approximate value.
• Statements from all roommates confirming the situation.

How long will the investigation take?

The timeline can vary. In many such cases, once the police understand it’s a civil matter, they will ask the complainant to go to court and close the preliminary inquiry. They may make a note in their records (station diary) and not file an FIR. If, in a rare scenario, an FIR is registered, the investigation will proceed as per the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which can take several months. Your lawyer can guide you on seeking anticipatory bail if an FIR is registered to prevent any potential arrest.

Advocate Sudhir Rao, Supreme Court of India