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

Mr. Sameer, a resident of Jabalpur, was looking for ways to grow his savings. An acquaintance, Mr. Vikas, introduced him to what he called a high-return “private investment fund” named “FutureSecure Ventures.” Trusting his acquaintance, Mr. Sameer invested a significant sum of money into the scheme. For the first two months, everything seemed perfect, with promised returns being credited to his account on time.

However, the payments abruptly stopped in the third month. When Mr. Sameer inquired, Mr. Vikas gave a series of excuses, ranging from “adverse market conditions” to “personal health emergencies.” After several months of delays and false assurances, Mr. Sameer demanded the return of his principal amount. Mr. Vikas is now avoiding his calls and messages, refusing to return the capital. Mr. Sameer possesses a signed agreement from the time of investment and has saved all the digital conversations with Mr. Vikas. He is now considering legal action to recover his hard-earned money.

Advice in such cases

If you find yourself in a similar predicament, it is crucial to act strategically and without delay. Here are the steps you should consider:

• Gather all documentation related to the investment. This includes any agreement, receipts, bank transfer details, and communication records like emails, SMS, or WhatsApp chats.
• The first formal step is to send a legal notice through a lawyer. This notice will demand the return of the principal amount along with any due returns within a specified period, failing which you will initiate civil and criminal proceedings.
• If the notice does not yield a positive response, you should file a police complaint detailing the fraud.
• Simultaneously, you can file a civil suit for the recovery of your money in the appropriate court.
• 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

Such cases often involve both civil and criminal liabilities. The following sections of the Bharatiya Nyaya Sanhita (BNS), 2023, are typically invoked:

• Section 316 of the BNS, 2023 (Criminal Breach of Trust): This applies when a person is entrusted with property and dishonestly misappropriates it or converts it for their own use. In this scenario, the fund manager was entrusted with your money for investment but is now wrongfully withholding it.
• Section 318 of the BNS, 2023 (Cheating): This section applies if it can be proven that the person had a dishonest intention from the very beginning to deceive you into parting with your money. The false promises and subsequent failure to pay can be grounds for cheating.
• The Banning of Unregulated Deposit Schemes Act, 2019: If the scheme was not registered with regulatory bodies like SEBI or RBI, it might be classified as an unregulated deposit scheme, making the act of soliciting and accepting money under it a specific offense.

If you are the complainant

As the person who has been wronged, your role is proactive. Here is what you should do:

• Do not delay. The more time passes, the harder it can be to trace the money or prove fraudulent intent.
• Organize all your evidence chronologically. Create a clear timeline of events, from the initial investment to the last communication.
• When filing a police complaint, ensure it is detailed and clearly states the facts that constitute a criminal offense, not just a simple breach of contract.
• 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

Being a victim of financial fraud can be distressing. It is important to stay focused and take the right steps:

• Acknowledge that you have been wronged and are entitled to legal recourse. Do not let feelings of embarrassment prevent you from taking action.
• Do not fall for further delay tactics or promises from the other party once you have decided to take the legal route. All further communication should ideally be through your lawyer.
• Follow the legal process diligently. This includes cooperating with the police during the investigation and attending court hearings as required.
• 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

Initially, the police might perceive the issue as a civil dispute concerning a breach of contract and may be reluctant to file a First Information Report (FIR). They may suggest that you approach a civil court. However, it is important to explain the criminal aspect of the case. A well-drafted complaint prepared by a lawyer, clearly highlighting the elements of cheating and criminal breach of trust (deception, dishonest intent), can persuade them to register an FIR. Once the FIR is registered under the relevant sections of the BNS, they are bound by the procedure laid down in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, to investigate the matter.

FAQs people normally have

What evidence is required?

Strong evidence is the backbone of your case. You will need:

• The Investment Agreement: The primary document outlining the terms of the investment.
• Proof of Payment: Bank statements, UPI transaction records, or any other document showing the transfer of money to the accused.
• Digital Communication: Screenshots of WhatsApp chats, SMS messages, and copies of emails where the investment was discussed, promises were made, and excuses were given.
• Promotional Material: Any brochures, pamphlets, or website links shared by the accused promoting the scheme.
• Witnesses: If anyone else was present during the discussions or invested in the same scheme, their testimony can be valuable.

How long will the investigation take?

The duration of a legal case can vary significantly. The police investigation, as per the BNSS, has procedural timelines, but complexities like tracing money trails or locating the accused can cause delays. A criminal case can take a few years to conclude. A civil recovery suit also proceeds at its own pace, depending on the workload of the court. However, initiating legal proceedings promptly often puts pressure on the accused to seek a settlement.

Advocate Sudhir Rao, Supreme Court of India