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 from City A had lent a substantial amount of money to his friend Mr.Y who resided in City B. The loan was given approximately 12 months ago based on their friendship and trust. When Mr.X faced a family medical emergency and urgently needed the money back, he contacted Mr.Y multiple times explaining his situation. However, Mr.Y stopped responding to calls and messages, effectively avoiding repayment. Mr.X was considering filing a cyber complaint but was unsure about the correct legal procedure. The case involved interstate jurisdiction issues and required proper documentation to establish the debt relationship. Mr.X had transferred money through digital payment methods, which created a digital trail of the transaction.

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 and payment records immediately
• Send a legal notice demanding repayment with specific timeline
• Consider filing a civil suit for recovery of debt rather than cyber complaint

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 318 deals with cheating and dishonestly inducing delivery of property. Section 316 covers criminal breach of trust when someone dishonestly misappropriates property entrusted to them. Under Bharatiya Nagarik Suraksha Sanhita (BNSS), Section 173 provides procedures for complaints in different jurisdictions. Additionally, the specific provisions for interstate matters under BNSS Section 177 would apply for determining the appropriate court jurisdiction when the accused resides in a different state.

If You Are the Complainant

• Collect all digital payment receipts, bank statements, and transaction records
• Save screenshots of all communications, WhatsApp chats, and call logs
• File complaint in your local police station where the transaction originated
• Prepare a detailed chronology of events with dates and amounts
• Consider approaching civil court for debt recovery parallel to criminal complaint

If You Are the Victim

• Immediately stop any further financial transactions with the defaulter
• Send formal demand notice through registered post with acknowledgment
• Report to cybercrime portal only if digital fraud elements are present
• Gather witnesses who were aware of the loan transaction
• Consider mediation through mutual contacts before legal action

How the Police Behave in Such Cases

Police typically treat such cases as civil disputes initially and may suggest approaching civil court. However, if elements of cheating or criminal breach of trust are established, they register FIR under relevant BNS sections. Interstate coordination may cause delays in investigation. Police often recommend attempting settlement through legal notice first before filing criminal complaint.

FAQs People Normally Have

Can I file cyber complaint for non-return of money? Only if digital fraud or cybercrime elements are present, otherwise it’s a civil debt recovery matter.

Which court has jurisdiction? Generally where the transaction took place or where you reside, but interstate cases may require careful jurisdiction analysis.

Is verbal loan agreement valid? Yes, but proving it requires supporting evidence like digital payment records and communications.

How long do I have to file case? Criminal complaints have no limitation, but civil recovery suits have three-year limitation period.

What Evidence Is Required?

• Digital payment receipts and bank transfer statements
• WhatsApp chats, SMS, or email communications about the loan
• Witness statements from people who knew about the transaction
• Call records showing attempts to contact for repayment
• Any written acknowledgment or promissory notes
• Screenshots of social media conversations
• Bank account details of both parties

How Long Will the Investigation Take?

Criminal investigations typically take 3-6 months for completion, but interstate cases may extend to 8-12 months due to coordination requirements. Civil recovery suits through court generally take 1-3 years depending on case complexity and court schedules. Settlement negotiations can resolve matters within 2-3 months if both parties cooperate.

Advocate Sudhir Rao, Supreme Court of India