Bank Forged Signature and Wrongly Reported as Co-Borrower — How to Restore Your Credit Score

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.

Rohan Gupta, a software professional based in Indore, received a shock in late February 2025 when his home loan application was rejected outright. His CIBIL score had dropped by over 180 points without any apparent reason. On pulling his credit report, he found himself listed as a co-borrower on a personal loan account held with Bajaj Finance — an account his elderly parents in Nagpur had taken sometime around December 2024 to meet medical expenses. Rohan had never visited any branch, had never signed any document, and had certainly never undergone a Video Customer Identification Process (VCIP). His parents had submitted photocopies of his Aadhaar and PAN, without his knowledge, and the bank had processed the loan listing him as a co-borrower.

When the loan turned NPA in early March 2025, Bajaj Finance began reporting Rohan across all four credit bureaus. He raised disputes with CIBIL and Experian, but both returned the same response — the lender's records confirmed him as a co-borrower, so no correction was warranted. Rohan had previously written two complaint letters to the bank's grievance officer and filed a Banking Ombudsman complaint on his own — without any measurable result. A colleague referred him to Advocate Sudhir Rao. Once the matter was handled with a focused legal approach — combining a formal forensic affidavit, a criminal complaint for forgery, and a writ petition — the bank's position shifted noticeably. The bureau entries were eventually flagged for review, and Rohan's credit profile began its path toward restoration. The combination of civil and criminal remedies, pursued in the correct sequence, made the difference that earlier, non-specialist efforts simply had not.

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.

Get a forensic handwriting analysis done: Before filing any complaint, commission a certified forensic document examiner to compare your authentic signatures with those on the loan agreement. A forensic report carries serious evidentiary weight before both civil courts and criminal magistrates — and it's often the single document that changes a bank's tone entirely. Don't underestimate its importance.

Raise a formal dispute with all credit bureaus simultaneously: File disputes with CIBIL, Experian, Equifax, and CRIF High Mark in writing, attaching your complaint to the bank and the forensic report. Bureaus are obligated under the Credit Information Companies (Regulation) Act, 2005 to investigate disputes within 30 days of receiving them from the lender. Filing with just one bureau and waiting is a mistake I've seen people make repeatedly.

Domain-specific experience matters here: Cases involving forged banking documents, NPA mis-reporting, and credit bureau rectification sit at the intersection of criminal law, banking regulation, and civil remedies. Frankly, an advocate who regularly handles such matters will know precisely which forums to approach, in what sequence, and with what evidence — details a general practitioner may not be fully familiar with.

Applicable Sections of Law

This case is a mixed matter — it carries both criminal elements (forgery, cheating) and civil/regulatory elements (credit bureau correction, banking ombudsman, writ jurisdiction). The criminal side is governed by the Bharatiya Nyaya Sanhita, 2023:

• Section 316 BNS — Cheating: fraudulently inducing a person to believe a false representation and thereby causing harm.
• Section 338 BNS — Forgery: making a false document with intent to cause damage or injury.
• Section 340 BNS — Forgery for purpose of cheating: an aggravated form attracting higher punishment.
• Section 3(1) read with Section 30, Credit Information Companies (Regulation) Act, 2005 — Obligation of credit institutions to furnish accurate information; failure or deliberate mis-reporting attracts regulatory action by the RBI.
• Section 35A, Banking Regulation Act, 1949 — RBI's power to issue directions to banking companies, relevant when a bank refuses to rectify documented errors.

Punishment and Penalties

• Section 338 BNS (Forgery): Imprisonment up to two years, or fine, or both. Non-cognizable, bailable, and non-compoundable.
• Section 340 BNS (Forgery for purpose of cheating): Imprisonment up to seven years, and fine. Cognizable, non-bailable, and non-compoundable.
• Section 316 BNS (Cheating): Imprisonment up to three years, or fine, or both. Cognizable and bailable for simple cheating; aggravated forms are non-bailable.
• Where bank employees are named, departmental action under the Banking Regulation Act and RBI circulars can run alongside criminal proceedings. Make no mistake — the penalties are significant, and that leverage matters during settlement negotiations.

Jurisdiction — Where to File the Case

For the criminal complaint (forgery and cheating), the appropriate forum is the Judicial Magistrate of First Class (JMFC) having territorial jurisdiction over the place where the forged documents were executed or where the loan was disbursed. The FIR can be filed at the police station in whose jurisdiction the bank branch that processed the loan is located.

For civil and regulatory relief, the District Consumer Disputes Redressal Commission under the Consumer Protection Act, 2019 has jurisdiction if the claim falls within pecuniary limits (up to Rs. 50 lakhs). The Banking Ombudsman under RBI's Integrated Ombudsman Scheme can also be approached. For constitutional remedies and credit bureau directions, the High Court under Article 226 of the Constitution is the appropriate forum. And here's the thing — choosing the right forum in the right order is where most self-represented complainants go wrong.

What if Police Refuse to File FIR?

• Submit a written complaint to the Superintendent of Police (SP) of the district under Section 173(4) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). The SP is empowered to direct investigation.
• File a private complaint before the Judicial Magistrate under Section 175(3) BNSS. The Magistrate can direct the police to investigate and submit a report.
• If both avenues fail, approach the High Court by way of writ petition under Article 226 of the Constitution seeking a direction to register the FIR. The Supreme Court in Lalita Kumari v. Government of Uttar Pradesh (2014) held that registration of FIR is mandatory upon disclosure of a cognizable offence.
• Keep copies of every refusal — written or otherwise. Any resistance from the station can itself be documented and placed before the Magistrate.

Rights of the Accused

• Right against self-incrimination: Under Article 20(3) of the Constitution, no accused can be compelled to be a witness against himself. Bank employees summoned for questioning cannot be forced to produce self-incriminating statements.
• Right to legal representation: Article 22 of the Constitution guarantees the right to consult and be defended by a legal practitioner of choice.
• Right to be produced before Magistrate within 24 hours: Any person arrested must be presented before the nearest Magistrate within 24 hours of arrest, excluding travel time — Section 58 BNSS.
• Right to copy of FIR: Under Section 154(2) BNSS, a free copy of the FIR must be given to the informant. The accused also has the right to know the grounds of arrest.
• Right to bail: Depends on the bailable or non-bailable classification of the offence charged, discussed below.

Bail Provisions

Where Section 316 BNS (cheating) is the primary charge, the offence is bailable, and bail can be secured at the police station itself. Where Section 340 BNS (forgery for purpose of cheating) is invoked, the offence is non-bailable and requires a Magistrate or Sessions Court order. Now, before you act, understand that the classification of the offence determines your entire bail strategy from day one.

• Anticipatory bail under Section 482 BNSS can be sought before the Sessions Court or High Court by the accused bank employee where arrest is apprehended.
• Regular bail under Section 480 or Section 483 BNSS is available after arrest, subject to the court's discretion and the gravity of the offence.
• Typical bail conditions include surrender of passport, periodic appearance at the police station, and undertaking not to tamper with witnesses or evidence.

Quashing of FIR / Case

The accused (bank officials or employees) may approach the High Court under Section 528 BNSS — the inherent powers provision — seeking quashing of the FIR. Quashing, though, isn't easily granted in forgery cases involving third-party prejudice. In State of Haryana v. Bhajan Lal (1992), the Supreme Court laid down specific categories where quashing is permissible — primarily where no cognizable offence is made out on the face of the FIR, or where the entire dispute is purely civil in nature. Where a forensic report supports the forgery allegation, courts tend to refuse quashing and allow investigation to proceed. That forensic report, again, does a lot of work here.

Limitation Period

Time limits matter. For a civil suit seeking damages and a mandatory injunction for credit score rectification, the Limitation Act, 1963 provides a three-year limitation period under Article 113 (general residuary article), running from the date on which the right to sue first accrued — typically from the date the erroneous bureau entry was first reported or when the bank refused to rectify. For consumer complaints before the District Commission, Section 69 of the Consumer Protection Act, 2019 sets a two-year limitation from the date the cause of action arose. Missing this window can be fatal to the claim, though condonation of delay is possible on showing sufficient cause.

Interim Reliefs Available

Interim reliefs are critical in these cases, because credit damage accumulates every month the wrong entry persists.

• Interim injunction under Order 39 Rule 1 and 2 CPC directing the bank to stop reporting the petitioner as co-borrower pending disposal of the civil suit.
• Status quo order from the High Court in a writ petition under Article 226, directing the bureau to freeze or flag the disputed entry.
• Attachment before judgment under Order 38 Rule 5 CPC where there is evidence that the bank may dissipate assets to evade a damages decree — less common but available.
• Courts have increasingly shown willingness to grant interim directions in banking mis-reporting cases, as seen in Experian Credit Information Company of India Pvt. Ltd. v. Reserve Bank of India (2019 Bombay HC).

If You Are the Victim

• Pull your credit reports from all four bureaus immediately — CIBIL, Experian, Equifax, and CRIF High Mark — and identify every account where you are listed without your knowledge.
• Preserve all original communications with the bank — emails, letters, WhatsApp messages — without deletion. These form your evidentiary base.
• Commission a certified forensic handwriting examiner to compare disputed signatures with your known specimens and obtain a written report.
• File a formal grievance with the bank's nodal officer, followed by a complaint to the RBI Banking Ombudsman under the Integrated Ombudsman Scheme, 2021 if the bank does not respond within 30 days.
• Consult an advocate experienced in banking fraud and credit bureau disputes before making any public statements or signing any settlement offer from the bank.

Documents You Must Keep Ready

• Aadhaar card, PAN card, and passport (identity proof — both originals and certified copies)
• Credit reports from all four bureaus showing the disputed entry
• All written communications with the bank (grievance letters, emails, bank's responses)
• Banking Ombudsman complaint acknowledgment and order, if obtained
• Certified forensic handwriting examination report
• Parents' loan agreement and sanction letter received from the bank (as documentary evidence of the loan context)
• Your bank statements showing no disbursement of loan proceeds to your account
• Affidavit stating you never consented to being a co-borrower and never appeared for VCIP

What Evidence Is Required?

• Primary evidence: Original loan agreement bearing the disputed signature — obtainable through court process if the bank refuses to produce it voluntarily.
• Forensic handwriting report: Expert comparison between the disputed signature and authentic specimens from known documents (passport application, official correspondence).
• Credit bureau reports: Demonstrating the date the disputed entry first appeared and its impact on credit score.
• VCIP non-participation proof: Absence of any video KYC record, IP logs, or bank branch visit record in the bank's system — obtainable through Right to Information or court-directed discovery.
• Bank's internal records: Loan application form, KYC records submitted, and any communication logs — sought through discovery or court-directed production.

Advocate Sudhir