If you are stuck in such a situation, here is what to do.
Three friends, Ms. Anjali, Ms. Priya, and Mr. Rohan, were searching for a rental property in a residential area of Vidyut Nagar. They engaged a local real estate agent, Mr. Sharma, who showed them a suitable apartment in the Anand Vihar locality. After finalizing the property, they paid a token amount of ₹20,000 to Mr. Sharma to secure the house. However, just a couple of days before their scheduled move-in date, the broker informed them that the deal was off. He claimed the property owner was not comfortable renting to a group of two women and one man. When the friends requested the return of their token money, Mr. Sharma became unresponsive, stopped answering their calls, and eventually blocked their phone numbers, effectively disappearing with their money.
Advice in such cases
Dealing with such a situation can be stressful, but there are clear legal paths to follow to recover your money and hold the fraudulent party accountable.
- Gather All Evidence: Immediately collect and organize all communication with the broker. This includes call logs, WhatsApp chats, SMS messages, emails, and any payment receipts or bank transaction details.
- Send a Formal Demand Notice: The first formal step is to have a lawyer send a legal notice to the broker. This notice will demand the return of the token amount within a specified period (e.g., 15 days) and state that failure to comply will result in legal proceedings.
- File a Police Complaint: If the broker does not respond to the notice, you should file a complaint at the local police station. Frame the complaint clearly, highlighting the elements of cheating and criminal breach of trust.
- 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
Under the new legal framework in India, several provisions can be invoked in such cases:
- Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section deals with cheating. If the broker had a dishonest intention from the very beginning to deceive you and take your money without any intention of providing the rental property, it constitutes cheating.
- Section 316 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section pertains to Criminal Breach of Trust. The token money was entrusted to the broker for a specific purpose—securing the rental house. By dishonestly misappropriating it for his own use, he has committed a criminal breach of trust.
- The Consumer Protection Act, 2019: A broker provides a service. Failure to render that service properly and withholding the token amount is a "deficiency in service." You can file a complaint before the District Consumer Disputes Redressal Commission.
- The Real Estate (Regulation and Development) Act, 2016 (RERA): If the broker is registered under RERA, a complaint can also be filed with the state's RERA authority for professional misconduct.
If you are the complainant
As the person who has been defrauded, you are the complainant. Your role is to initiate the legal process.
- Draft a Clear Complaint: Write a detailed, chronological account of the events. Mention the date you met the broker, the property details, the amount paid, the reason given for cancellation, and the subsequent refusal to return the money. Attach copies of all evidence.
- File an FIR: Submit your written complaint to the Station House Officer (SHO) of the police station that has jurisdiction over the area where the transaction took place. If the police are hesitant to file a First Information Report (FIR), you can send the complaint to a higher-ranking officer like the Superintendent of Police (SP) or approach the Magistrate's court under Section 156(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS).
- 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
Recognizing that you are a victim of a scam, your immediate actions are crucial.
- Act Quickly: Do not delay. The more time passes, the harder it might be to trace the person or recover the money.
- Preserve Digital Footprints: Take screenshots of all chats before they can be deleted. Save the broker's contact number, any display pictures, and UPI ID used for the transaction.
- Avoid Further Engagement: Do not get into prolonged arguments or make threats to the broker over the phone. Let all further communication be through a formal legal notice.
- 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 matters as civil disputes over a broken agreement. They might be reluctant to file an FIR and may suggest you go to court to file a civil recovery suit. It is important to persistently explain that the act involves criminal intent. Emphasize the elements of deception and dishonest inducement from the outset, which makes it a criminal case under the BNS. A well-drafted complaint prepared with a lawyer's help, clearly outlining these criminal aspects, can persuade the police to register an FIR and investigate the matter criminally.
FAQs people normally have
- Is this a civil or a criminal matter?
It has elements of both. The refusal to return money is a civil wrong for which you can file a recovery suit. However, the act of deceiving you with a false promise to take your money is a criminal offense (cheating and criminal breach of trust).
- Can I file a complaint online?
Yes, you can file a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) if the transaction was done online. You can also file a complaint on the respective state police's online portal.
- What if I paid the broker in cash without a receipt?
While challenging, it is not impossible to prove. Your testimony, along with any witnesses (like your friends), and circumstantial evidence like call records and chat history discussing the cash payment, can be used to build your case.
What evidence is required?
Strong evidence is key to a successful outcome. Ensure you have the following:
- Proof of Payment: Bank account statements, UPI transaction screenshots, or any digital payment confirmation. If cash was paid, any written acknowledgment, no matter how informal.
- Communication Records: Complete chat history from platforms like WhatsApp, SMS, or emails.
- Broker's Details: His full name, phone number, office address (if any), and any other identifying information.
- Property Details: The address of the rental property you were supposed to lease.
- Witnesses: The testimony of the friends who were part of the rental plan is crucial corroborative evidence.
How long will the investigation take?
The duration of a police investigation varies significantly. After an FIR is filed, the police will investigate, which can take anywhere from a few weeks to several months, depending on their workload and the complexity of the case. If the police file a chargesheet, the case moves to court, where the trial process will have its own timeline. However, often the pressure of a police investigation or a legal notice is enough to compel the fraudulent broker to return the money to avoid further legal trouble.
Advocate Sudhir Rao, Supreme Court of India