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.
TL;DR: A homebuyer who paid ₹9.5 lakh to a builder in Indore got no registration for seven months — and then a demand for more money. Instead of waiting for a consumer court, a targeted criminal complaint with the Commissioner’s office brought the builder to the table in a week, and the full cheque cleared two days later.
Arjun Mehta paid ₹9.5 lakh to M/s Surya Developers, a well‑known local builder, for a residential plot in Indore’s Vijay Nagar area. The token and initial instalment — all through account‑payee cheques — were handed over on 20 June 2024. The builder’s marketing agent, Rajesh Tiwari, promised registration within sixty days. Seven months passed. Not a single document. Then, in late January 2025, the builder demanded an extra ₹3 lakh to “complete formalities”. Arjun refused and asked for a refund. The builder stopped taking his calls. Before approaching the Chamber of Advocate Sudhir Rao, Arjun had consulted a general litigator who advised a consumer complaint. That advice, however, didn’t move the needle. Advocate Sudhir Rao and his office, drawing on deep domain experience in property fraud, assessed the pattern immediately: the builder had no intention of honouring the contract from the start. The office recommended filing a criminal complaint under Section 319 BNS directly with the Commissioner of Police, Indore, bypassing the slow‑track consumer forum route. The complaint was lodged on 5 February 2025. On 12 February, Rajesh Tiwari called Arjun, almost begging him to collect a demand draft. The police station recorded the cheque details, and the full amount cleared two days later. Advocate Sudhir Rao’s precise strategy turned a dead‑end standoff into a swift recovery.Key Facts of the Case
- Arjun Mehta paid ₹9.5 lakh via cheque to M/s Surya Developers in Indore for a residential plot on 20 June 2024.
- The builder promised registration within 60 days but did not initiate any paperwork for over seven months.
- In January 2025, the builder demanded an additional ₹3 lakh to proceed, which the buyer rejected.
- When the buyer sought a refund, the builder and its marketer Rajesh Tiwari went silent.
- An earlier plan to approach consumer court had not yielded any movement.
- Advocate Sudhir Rao’s office identified the conduct as cheating under Section 319 BNS and advised a criminal complaint with the Police Commissioner’s office.
- Within one week of filing the complaint, the marketer returned the entire amount by cheque, and it cleared successfully.
The Direct Legal Answer
Can a builder’s delay and demand for extra money become a criminal case?
Yes. If the builder took your money with no real intention of fulfilling the contract — and then invented new demands to extract more — the conduct fits cheating under Section 319 of the Bharatiya Nyaya Sanhita, 2023. That section covers dishonestly inducing someone to deliver property. It’s not “just a civil breach” when the intent to deceive was present from the beginning.
Is it faster than consumer court?
In this type of matter, a criminal complaint often forces immediate pressure because the police can summon the accused directly. The mere prospect of an FIR can trigger a settlement. Consumer courts work on a longer calendar. And here’s the thing: you don’t have to choose one. A criminal complaint can run parallel to a civil remedy, but the criminal trigger often shakes the tree faster.
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.
Don’t wait months hoping the builder will turn honest. Every day you delay, evidence gets fuzzier and the builder may shift assets.
Keep all payment receipts, the initial agreement, WhatsApp chats, and call recordings safe. That material is the spine of your complaint.
Make no mistake, this category of case turns on tiny procedural choices — where to file, under which exact section, and what to demand. A lawyer who doesn’t routinely handle property‑linked criminal filings can miss the move that unlocks the stall.
Applicable Sections of Law
- Section 318, Bharatiya Nyaya Sanhita, 2023: Defines cheating. Where fraudulent intent is shown, the offence attracts a prison term of up to 3 years, or fine, or both.
- Section 319, BNS 2023: Cheating and dishonestly inducing delivery of property. This carries imprisonment of up to 7 years and fine — and applies squarely when money is taken without any real plan to transfer the plot.
- Section 173, Bharatiya Nagarik Suraksha Sanhita, 2023: Laying down the procedure for filing a First Information Report with the police.
- Section 175(3), BNSS 2023: If the police refuse to act, a private complaint can be moved directly before a Magistrate.
Punishment and Penalties
Under Section 319 BNS, the punishment is rigorous imprisonment of not less than 3 years and which may extend to 7 years, along with a fine. The offence is cognisable — meaning the police can arrest without a warrant — and non‑bailable. It is also non‑compoundable, though practical settlements can still be recorded and used to seek quashing of proceedings later. For first‑time offenders with clean antecedents, courts may grant bail subject to conditions, but the initial gravity of the section keeps the pressure fully on the accused.
Jurisdiction — Where to File the Case
The complaint can be filed at the police station having territorial jurisdiction over the area where the offence took place: where the money was handed over, where the builder’s office is located, or where the plot is situated. In this matter, the buyer approached the Commissioner of Police, Indore, who directed the local station to act. For a private complaint under Section 175(3) BNSS, the jurisdictional Magistrate’s court in the same district will hear it. Choosing the right location matters — wrong jurisdiction leads to a transfer delay or outright refusal.
What if Police Refuse to File FIR?
- Approach the Superintendent of Police (SP) under Section 173(4) BNSS with a written application. The SP can direct an investigation or register the FIR himself.
- File a private complaint before the jurisdictional Magistrate under Section 175(3) BNSS. The Magistrate can order the police to investigate and register an FIR.
- As a last resort, a writ petition can be moved before the High Court under Article 226 of the Constitution, seeking a direction to the police.
- Keep a record of every refusal — dates, officers’ names, and the written complaint acknowledgments — because the paper trail is your shield.
Rights of the Accused
- Right against self‑incrimination (Article 20(3)): The accused cannot be forced to be a witness against themselves.
- Right to legal representation (Article 22): An accused may consult and be defended by a legal practitioner of choice.
- Right to be produced before a Magistrate within 24 hours: No accused shall be detained beyond 24 hours without a Magistrate’s order.
- Right to know the grounds of arrest: The grounds must be communicated clearly and promptly.
- Right to a copy of the FIR: Free of cost, at the time of arrest or immediately after.
Bail Provisions
Offences under Section 319 BNS are non‑bailable. The accused can apply for anticipatory bail under Section 482 BNSS before arrest if they apprehend custody. After arrest, regular bail lies under Section 480 or 483 BNSS before the jurisdictional court. Courts typically impose conditions like surrendering the passport, not tampering with evidence, and attending investigation calls. In property‑cheating cases, bail is often granted if the accused deposits a substantial portion of the disputed amount or provides solvent surety — but that’s a fact‑sensitive call.
Quashing of FIR / Case
The High Court, under its inherent powers in Section 528 BNSS, can quash an FIR if no prima facie offence is made out, the complaint is an abuse of process, or the parties have settled in a compoundable‑like compromise (though 319 is non‑compoundable, the court may still quash on settlement grounds in exceptional situations). Quashing is a viable strategy when the builder returns the entire money with interest and the buyer files a no‑objection affidavit.
If You Are the Victim
- Don’t chase the builder alone. Let your lawyer handle all communication after the complaint.
- Preserve every scrap of written or digital communication — WhatsApp texts, emails, call recordings, and bank statements.
- Do not accept partial payments without a written acknowledgment and a clear timeline for the balance.
- Check the builder’s project registration on the state RERA portal; an unregistered project strengthens the charge of dishonest intent.
- Act quickly. Evidence fades, and key witnesses become unreachable.
Documents You Must Keep Ready
- Copy of the allotment letter or agreement to sell.
- All payment receipts and bank statements showing the cheque / NEFT transfers.
- Identity proof: Aadhaar and PAN card of the buyer.
- Builder’s brochure, advertisement, and any written promise about the timeline.
- Screenshots of WhatsApp conversations, SMS, and call logs with timestamps.
- Copy of the RERA registration certificate of the project (if available).
- Any reply letters or emails from the builder.
What Evidence Is Required?
- Primary evidence: Original signed agreement, bank instruments, and demand drafts — these are the strongest.
- Secondary evidence: Certified copies of bank records, screenshots, printouts of emails (with metadata preserved), and recorded call transcripts.
- Witness statements — a family member or friend who was present during meetings can corroborate the builder’s assurances.
- Forensic analysis of digital devices may be needed if the builder disputes the chats.
- Police will also collect the builder’s bank account statements to trace where your money was diverted.
How the Police Behave in Such Cases
In property‑cheating complaints, the police initially tend to treat the matter as a civil dispute and may discourage an FIR. That’s why routing the complaint through the Commissioner’s office — like in this matter — adds weight. Once a senior officer issues directions, the station typically summons the accused for a confrontational inquiry. The prospect of an FIR and arrest is often enough to make the builder settle. But if the officer still drags their feet, the remedies under BNSS Section 173(4) and 175(3) must be invoked without hesitation.
Timeline of Legal Process
- Filing of complaint to FIR: Ideally 24‑48 hours after a senior officer’s direction; can stretch to a week.
- Investigation: 60‑90 days, extendable by the Magistrate.
- Chargesheet: Filed within the investigation period; if not, accused may seek default bail.
- Cognizance & summons: Court takes cognisance within 2‑4 weeks of chargesheet.
- Framing of charges: 1‑3 months from first appearance.
- Trial: 12‑24 months in a fast‑track court; longer otherwise.
- Appeal: Sessions Court or High Court, typically 6‑18 months.
- In many builder‑fraud cases, the process stops early — settlement often happens between FIR and chargesheet.
How Long Will the Investigation Take?
Police investigation in a cheating case under Section 319 BNS typically takes 60 to 90 days. If the investigation isn’t complete within that period, the accused can apply for statutory bail. Practically, in matters where the builder wants to avoid arrest, the investigation often puts immediate pressure, leading to settlement within the first few weeks itself.
Understanding the Costs
The total cost of a matter like this varies significantly from one case to the next — it depends on the complexity of the dispute, the forum involved, the number of hearings, and the specific facts of your situation. There is no single fixed figure that applies to everyone.
A professional advocate can give you an accurate estimate only after reviewing all your facts and documents in a consultation.
Can the Matter Be Settled Out of Court?
Absolutely. Mediation and conciliation are encouraged at every stage. Even though Section 319 BNS is non‑compoundable, the High Court may quash the proceedings under Section 528 BNSS when a genuine settlement is reached and the victim files a no‑objection declaration. Before the FIR is registered, a compromise recorded before the police or the Magistrate can prevent the case from moving ahead. Lok Adalats can also handle such pre‑litigation settlements in a very short time. For the victim, settlement means quicker money recovery without the stress of a trial.
Common Mistakes People Make
- Waiting too long to act: Delay weakens the paper trail and allows the builder to transfer assets.
- Trusting verbal promises: Building contracts and refund guarantees must be in writing; a handshake isn’t evidence.
- Destroying WhatsApp chats or call recordings: People often delete messages out of frustration — that’s devastating for the case.
- Accepting part‑payment without a legal release: It can be interpreted as a settlement of the full claim.
- Engaging a lawyer without relevant domain experience: A generic litigator may frame it as a pure civil breach and miss the criminal dimension entirely. A lawyer who regularly handles property‑cheating complaints understands the right sections, the exact forum strategy, and how to handle police hesitation — and that can cut the recovery time from months to days.
- Posting details on social media: It can alert the builder to destroy evidence before you even file.
FAQs People Normally Have
Can I file a criminal case if the builder simply delayed registration?
Mere delay is not a crime. But when the builder had no intention of fulfilling the contract from the start — and the delay is coupled with a demand for more money — the ingredients of cheating under Section 319 BNS are satisfied.
Is the offence bailable?
No. Section 319 BNS is non‑bailable. The accused must apply for bail before the court, and grant is discretionary.
What if the police refuse to lodge an FIR?
You can escalate the matter to the SP under Section 173(4) BNSS or file a private complaint before the Magistrate under Section 175(3) BNSS. The court can order registration.
Can I still go to RERA or consumer court after filing a criminal complaint?
Yes. Criminal proceedings and civil remedies are independent. But you must inform the respective forums about the pending criminal case.
How quickly can I get my money back using this method?
In this class of cases, when the complaint is filed with the right legal precision, builders often settle within a week or two — as happened here — simply to avoid the FIR and the arrest that may follow.
This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.
Advocate Sudhir Rao, Supreme Court of India
Facing a similar matter? Speak to a criminal lawyer in Delhi — Advocate Sudhir Rao appears in bail, trial and appellate matters before the Delhi District Courts, the Delhi High Court and the Supreme Court of India.