One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr.X received an unexpected digital payment in his X.wallet account from an unknown person, Mr.Y. After a few hours, Mr.Y contacted Mr.X through phone, claiming he had transferred the money by mistake and demanding immediate return. Mr.X, being cautious about potential fraud, advised Mr.Y to follow proper channels through the payment platform or his bank for reversal, promising full cooperation with official procedures. However, Mr.Y became aggressive and started threatening to file a police complaint, claiming Mr.X was committing theft by not immediately transferring the money back. Mr.X had not touched the mistakenly received amount and was genuinely willing to return it through proper channels, but felt intimidated by the threats and sought legal guidance on how to handle this situation without falling victim to potential scams or facing false criminal allegations.

Advice in Such Cases

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 to 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.

• Document all communications with the sender, including call recordings if legal in your state
• Contact the payment platform’s customer service immediately to report the issue
• Do not transfer money directly to avoid falling victim to potential fraud schemes
• File a police complaint if threats escalate to protect yourself from false accusations

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), several sections may apply to such cases. Section 351 deals with criminal intimidation, which covers threats made to compel someone to do something they’re not legally bound to do. Section 303 addresses theft, though genuine mistakes don’t constitute theft. Section 308 deals with extortion through threats. Under Bharatiya Nagarik Suraksha Sanhita (BNSS), Section 173 covers procedures for filing complaints, while Section 154 deals with FIR registration. The key is proving intent – mere retention of mistakenly received money without dishonest intention doesn’t constitute theft under law.

If You Are the Complainant

• File a complaint under BNS Section 351 for criminal intimidation if threats are made
• Gather evidence of aggressive behavior, threatening calls, or messages from the other party
• Approach cyber crime cell since digital payment platforms fall under their jurisdiction
• Maintain records of your willingness to cooperate through proper channels
• Seek anticipatory bail if you suspect false cases might be filed against you

If You Are the Victim

• Immediately contact your bank or payment platform’s customer service for reversal procedures
• File a formal complaint with the platform providing transaction details and proof of mistake
• Maintain calm communication with the recipient, avoiding threats or aggressive language
• Keep records of the transaction, including screenshots and bank statements as evidence
• If the recipient is uncooperative, approach police with proper documentation rather than making threats

How the Police Behave in Such Cases

Police typically treat digital payment disputes as civil matters initially, unless criminal intent is clearly established. They often advise parties to resolve through banking channels first. However, if criminal intimidation or fraud is involved, they may register FIRs. Cyber crime cells are more equipped to handle such cases than regular police stations. Officers usually examine transaction records, communication evidence, and intent before proceeding. They may facilitate mediation between parties for amicable settlement before formal action.

FAQs People Normally Have

• Is keeping mistakenly received money illegal? Not automatically – intent matters. If you plan to return it through proper channels, it’s not theft.
• Can someone file a police case for payment disputes? Yes, but police prefer banking channel resolution first unless fraud is evident.
• What if the payment platform doesn’t help? You can approach banking ombudsman or consumer court for resolution.
• Are verbal threats enough for police action? Yes, criminal intimidation cases can be filed based on threatening communications with proper evidence.

What Evidence Is Required?

• Transaction screenshots showing the mistaken payment details and amount
• Call recordings or message screenshots of threatening communications
• Bank statements proving the money was received and remains untouched
• Communication records with payment platform’s customer service
• Evidence of your attempts to resolve through proper channels
• Witness statements if threats were made in presence of others
• Phone number verification and identity proof of the threatening party

How Long Will the Investigation Take?

Digital payment dispute investigations typically take 15-30 days for initial inquiry. If criminal intimidation charges are involved, police may complete investigation within 60-90 days. Banking channel resolutions through customer service usually take 7-15 working days. Complex cases involving multiple parties or technical verification may extend to 3-6 months. Cyber crime cell investigations are generally faster due to digital evidence availability.

Advocate Sudhir Rao, Supreme Court of India