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

In late 2023, Mr. Alok Sharma’s then-girlfriend, Ms. Priya Singh, purchased a high-end smartphone worth ₹70,000 using a loan taken out in Mr. Sharma’s name, affecting his credit history. The understanding was clear: Ms. Singh would be responsible for the 18-month EMI payments. For a while, she upheld this agreement. However, with approximately ₹39,500 still outstanding, the situation deteriorated.

Around March 2024, Mr. Sharma borrowed ₹42,000 from Ms. Singh, of which he later returned ₹30,000, leaving a balance of ₹12,000. The relationship soured when Mr. Sharma moved to Jaipur for work in May 2024 and discovered Ms. Singh’s infidelity. Following this, Ms. Singh and her new partner, Mr. Vikram Kumar, began demanding the remaining ₹12,000. Feeling betrayed, Mr. Sharma refused.

In June 2024, the dispute escalated. Ms. Singh challenged Mr. Sharma to close the loan, and they, along with her new partner, mutually agreed to settle the entire loan amount on a specific date in early July. However, when Mr. Sharma followed up on the agreed date to finalize the payment, Ms. Singh was non-committal and did not proceed.

Later, upon Mr. Sharma’s return to his hometown of Udaipur, Ms. Singh again demanded the ₹12,000, which he refused. This led to a barrage of abusive messages from her and threatening phone calls from Mr. Kumar. Ms. Singh has now declared she will not pay the next three EMIs, leaving Mr. Sharma liable and his credit score at risk. Mr. Sharma has expressed his willingness to clear the loan, but only through a formal, one-time settlement, not by continuing monthly payments that benefit her. He possesses call recordings and chat screenshots as evidence of the threats and their agreement to close the loan.

Advice in such cases

• Preserve all evidence meticulously. This includes chat screenshots, call recordings, emails, and any financial transaction records.
• Do not engage in further arguments or make any new promises. Communicate only through formal channels if necessary, preferably through a legal representative.
• Pay the upcoming EMI if you can afford it to protect your credit score. You can later claim this amount from the other party 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

Applicable Sections of Law

This situation involves elements of both civil and criminal wrongdoing under Indian law. The relevant legal provisions would be from the new acts:

• Section 316 of the Bharatiya Nyaya Sanhita (BNS), 2023 – Criminal Breach of Trust: You entrusted the financial liability to your ex-partner on the condition that she would pay the EMIs. Her refusal to pay and misuse of this trust for her benefit constitutes a criminal breach of trust.
• Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023 – Cheating: It can be argued that she had a dishonest intention from the start, or developed it later, to make you suffer a wrongful financial loss while she gained wrongful possession and use of the phone.
• Section 351 of the Bharatiya Nyaya Sanhita (BNS), 2023 – Criminal Intimidation: The threats made by her new partner over the phone to cause you harm are a clear case of criminal intimidation, which is a punishable offence.
• Civil Suit for Recovery: Alongside criminal proceedings, you can file a civil suit in a court of appropriate jurisdiction to recover the loan amount, any EMIs you paid on her behalf, and compensation for the harassment and damage to your credit score.

If you are the complainant

If you find yourself in Mr. Sharma’s position, you are the complainant. Here are the steps to take:

• Send a Legal Notice: The first formal step is to have a lawyer draft and send a detailed legal notice to your ex-partner. This notice will state the facts, demand the immediate closure of the loan or payment of the outstanding amount, and warn of legal action (both civil and criminal) if the demands are not met within a specified timeframe.
• File a Police Complaint: If the notice is ignored or the threats continue, you should file a written complaint at your local police station. Detail all the facts and mention the specific offences like criminal breach of trust, cheating, and criminal intimidation. Attach copies of all evidence. The police can then register a First Information Report (FIR) under the relevant sections of the BNS.
• Follow up with the Police: Stay in touch with the investigating officer to ensure the investigation proceeds. Your lawyer’s assistance is crucial here.
• Initiate Civil Proceedings: You can simultaneously file a civil suit for the recovery of money. This runs parallel to the criminal case and focuses on getting your money back.
• 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

If you are the victim

As the victim of financial deceit and harassment, your immediate focus should be on mitigating damage and seeking justice.

• Secure Your Finances: First, protect your credit score. If possible, pay the immediate EMI to avoid default, as this can have long-term consequences. This payment can be claimed back later.
• Document Everything: Compile all your evidence in a safe and organized manner. Make multiple digital and physical copies.
• Cease Direct Contact: Stop communicating directly with the individuals threatening or harassing you. Let all future communication be handled by your legal counsel.
• 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

Often, the police may initially view such cases as a “personal dispute” or a “civil matter,” especially when they involve former romantic partners. They might be reluctant to file an FIR and may suggest you resolve it mutually or go to court directly. However, the elements of cheating, criminal breach of trust, and criminal intimidation are clearly defined criminal offenses. The intervention of a lawyer is often necessary to explain the criminal aspects of the case to the police and ensure that an FIR is registered under the correct sections of the BNS. A well-drafted complaint supported by strong evidence makes it harder for the police to dismiss the matter.

FAQs people normally have

Can I be arrested if the loan defaults?
No, failure to pay a loan is a civil liability, not a criminal one. You cannot be arrested for the default itself. However, the bank or financial institution will initiate recovery proceedings against you, which will negatively impact your CIBIL score and future creditworthiness.

Will the police take action against her new boyfriend for the threats?
Yes. Criminal intimidation under Section 351 of the BNS is a cognizable offense. If you provide the call recordings or messages as evidence, the police are obligated to take action against him.

What if she claims the phone was a gift?
This is a common defense. However, your evidence, such as her paying the initial EMIs, chat messages discussing the loan closure, and her admission, will counter this claim. The fact that it was a loan taken in your name is the strongest evidence against the “gift” argument.

What evidence is required?

The strength of your case depends on the quality of your evidence. You will need:

• Loan Documents: The original loan agreement clearly showing you as the borrower.
• Bank Statements: Your bank statements showing the EMI deductions. If she transferred money to you for EMIs, those statements are also crucial.
• Chat Screenshots: All messages where she agrees to pay the EMIs, admits the loan is her responsibility, and agrees to close the loan.
• Call Recordings: Recordings of conversations where she admits to the arrangement and any threats made by her or her partner.
• Witnesses: If any friends or family were aware of this arrangement, their testimony can be valuable.

How long will the investigation take?

The duration of a police investigation under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, can vary significantly. For a straightforward case with clear evidence, the police might conclude their investigation and file a chargesheet within 60 to 90 days. However, delays can occur due to police workload, non-cooperation from the accused, or other complexities. A civil suit for recovery will have its own timeline, often taking much longer to reach a final judgment.

Advocate Sudhir Rao, Supreme Court of India