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

I find myself in a difficult situation. In August 2023, I lent ₹50,000 to a woman named Priya Sharma. To date, I have only received ₹5,000 back. Every time I ask for the remaining amount, she provides a new excuse, such as a sudden family medical emergency, a client’s payment being delayed, or a project being unexpectedly cancelled. I have since learned that Priya Sharma and her partner, Vikram Mehta, who together run a company called ‘Cosmic Creations Productions’ in Bengaluru, have a pattern of this behavior. Many others who have worked with them or lent them money have faced similar issues and have not been paid. I am currently residing in Dubai and need legal guidance on the steps I can take to recover my money.

Advice in such cases

• Gather all documentary evidence you have. This includes bank transfer statements, chat histories (WhatsApp, emails), call recordings, and any written agreement, however informal.
• Send a formal Legal Notice through a lawyer. This notice will detail the loan, the failure to repay, and the demand for the outstanding amount within a specific timeframe (usually 15 or 30 days), failing which you will initiate 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

In such cases, both criminal and civil remedies can be pursued:

• Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023 (Cheating): If it can be proven that the borrower had a dishonest intention from the very beginning and fraudulently induced you to lend the money with no intention of returning it, it constitutes the offence of cheating.
• Section 316 of the Bharatiya Nyaya Sanhita (BNS), 2023 (Criminal Breach of Trust): If you entrusted the money for a specific purpose and it was dishonestly misappropriated or converted for their own use in violation of your trust, this section may be applicable.
• Civil Suit for Recovery: A civil suit for the recovery of money can be filed in the appropriate court. If you have written proof of the loan (like a promissory note, emails, or messages), a Summary Suit under Order XXXVII of the Code of Civil Procedure, 1908, can be filed, which is a faster procedure for recovery.

If you are the complainant

• 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.
• After sending a legal notice, if the money is not returned, you can file a criminal complaint with the police. Provide them with all the evidence you have collected.
• If the police refuse to register an FIR, you can file a private complaint before the Magistrate under Section 221 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.
• Simultaneously, you can instruct your lawyer to file a civil suit for recovery of the amount, along with interest and legal costs.

If you are the victim

• Keep a clear and chronological record of all communications and transactions. Do not delete any messages or emails.
• Do not resort to any illegal means of recovery, such as threats or harassment, as this can create legal trouble for you.
• 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 perceive such cases as civil disputes over a loan and may be reluctant to file a criminal FIR. They might advise you to go to court. However, if you present clear evidence of fraudulent intent, deception from the start, and a pattern of cheating (by possibly connecting with other victims), they are more likely to register a case under the relevant sections of the BNS. The intervention of a lawyer can be crucial in persuading the police to take criminal action.

FAQs people normally have

What evidence is required?

• Proof of money transfer, such as bank account statements or UPI transaction details.
• Written communication like WhatsApp chats, SMS, emails, or letters where the loan is discussed and repayment is promised.
• Any promissory note or informal agreement that was signed.
• Statements or affidavits from other people who have been similarly cheated by the same individuals can serve as powerful corroborative evidence to establish a pattern of fraud.

How long will the investigation take?

The timeline can vary significantly. A police investigation and filing of a chargesheet can take anywhere from a few months to over a year. A criminal trial is a lengthy process and can take several years to conclude. A civil summary suit is generally faster, and if the borrower has no valid defense, a decree can be obtained within 6 to 18 months. However, executing the decree to actually recover the money can take additional time.

Advocate Sudhir Rao, Supreme Court of India