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 a phone call from someone claiming to be from X Bank, offering him a pre-approved credit card. The caller sounded professional and had basic details about Mr.X. Trusting the caller, Mr.X shared his Aadhaar number, PAN details, and other personal information over the phone. Within a week, Mr.X discovered that a loan of Rs 5,00,000 had been sanctioned in his name from Y Bank, which he had never applied for. The fraudsters had used his identity documents to process a fraudulent loan application. Mr.X immediately approached the bank and discovered that someone had submitted forged documents with his personal details. The bank demanded repayment, threatening legal action. Mr.X realized he had fallen victim to an elaborate identity theft and loan fraud scheme that could destroy his financial credibility and credit score.

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.

• File a police complaint immediately for identity theft and fraud
• Contact the bank’s fraud department and submit a written complaint with evidence
• Report to credit bureaus to flag fraudulent activities on your credit report
• Document all communications and maintain records of your actual whereabouts during loan processing

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), several sections apply to such fraud cases. Section 318 deals with cheating and dishonestly inducing delivery of property. Section 336 covers forgery of documents. Section 340 addresses using forged documents as genuine. Under Bharatiya Nagarik Suraksha Sanhita (BNSS), Section 173 provides for investigation procedures in fraud cases. These sections collectively address identity theft, document forgery, and financial fraud committed by impersonating bank officials and misusing personal information.

If You Are the Complainant

• File FIR under relevant BNS sections for cheating, forgery, and identity theft
• Submit documentary evidence including call records, bank statements, and identity proofs
• Provide detailed timeline of events and all communications with fraudsters
• Submit written complaint to the bank’s grievance redressal mechanism
• Coordinate with police investigation and provide additional evidence as required

If You Are the Victim

• Immediately report to police cyber crime cell and register complaint
• Contact bank fraud department and dispute the fraudulent loan in writing
• File complaint with banking ombudsman if bank doesn’t cooperate
• Alert credit bureaus to place fraud alert on your credit profile
• Maintain detailed records of all attempts to resolve the matter

How the Police Behave in Such Cases

Police typically treat loan fraud cases seriously, especially when identity theft is involved. They will register FIR under relevant BNS sections and initiate investigation. Cyber crime cells are particularly equipped to handle such cases involving phone fraud and document forgery. Police may coordinate with bank security teams and trace call records. However, they may initially suggest approaching bank’s internal grievance mechanism before escalating to criminal investigation.

FAQs People Normally Have

Can I be held liable for a loan I never applied for? No, if you can prove identity theft and fraud, you cannot be held liable for loans processed without your consent.

How long will it take to clear my name? Resolution depends on investigation progress and bank cooperation, typically 3-6 months with proper legal assistance.

Will this affect my credit score permanently? No, once fraud is established, credit bureaus will remove negative entries and restore your credit profile.

Can I claim compensation for harassment? Yes, you can claim damages for mental harassment and financial loss caused by the fraud.

What Evidence Is Required?

• Call records showing conversations with fraudulent callers
• Original identity documents proving your actual details
• Bank statements showing no loan transactions in your accounts
• Employment records proving your actual location during loan processing
• Digital evidence like emails or SMS received during fraud
• Witness statements from family members about the fraudulent calls
• CCTV footage from your location during alleged loan application

How Long Will the Investigation Take?

Investigation typically takes 3-6 months depending on complexity and cooperation from banks. Police need time to trace fraudsters, analyze call records, and verify forged documents. Bank’s internal investigation runs parallel and may conclude faster. With proper legal representation and complete documentation, resolution can be expedited. Complex cases involving multiple victims or sophisticated fraud networks may take longer.

Advocate Sudhir Rao, Supreme Court of India