Cheated by a Fake Instagram Shop? Here's What the Law Says and How to Recover Your Money

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.

A young professional from Indore placed an order worth Rs. 4,200 on an Instagram page that sold trendy streetwear. The page looked legitimate — it had product photos, a contact number, and even a few positive comments. Payment was made via UPI to a number linked to what appeared to be a small business. The order was placed around 8 February 2025. Days passed. Then weeks. No delivery, no tracking link, no response to messages.

Gone. By early March 2025, the Instagram page had vanished entirely. The phone number was switched off. The client had only a UPI transaction ID, a screenshot of the page, and the seller's phone number saved on his phone. He'd already tried contacting the UPI payment app's grievance desk without success. A complaint to the local cyber cell had been filed, but no action had been taken for over three weeks.

That's when he approached Advocate Sudhir Rao. And here's the thing — the earlier complaint had been filed without attaching the right combination of digital evidence and had not cited the applicable provisions under the Bharatiya Nyaya Sanhita. A revised complaint was prepared, supporting documents were structured correctly, and the matter was taken up with the relevant cyber cell with a parallel notice to the payment service provider. The approach brought traction where the earlier effort had not, and the client received a refund through the payment intermediary's dispute resolution mechanism within a few weeks of the revised filing.

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.

Preserve all digital evidence immediately: Take screenshots of the Instagram page (or Google cache if the page is deleted), the UPI transaction, all chat messages, and any phone numbers or account details. Don't wait — digital evidence disappears fast.

File on the National Cyber Crime Reporting Portal: Go to cybercrime.gov.in and register a complaint under the "Financial Fraud" category. Attach your evidence. This creates an official record and triggers escalation to the cyber cell automatically.

Approach your bank or UPI app for a chargeback: If payment was made via UPI, credit card, or debit card, immediately raise a dispute with your bank or payment app. Under RBI guidelines, payment intermediaries are obligated to investigate fraud complaints.

Now, before you act on any of this — online fraud recovery cases, especially those involving deleted social media storefronts, require advocates with specific experience in cyber fraud and digital evidence rules under the Information Technology Act, 2000 and the Bharatiya Nyaya Sanhita. Procedural missteps in how complaints are framed and evidence is presented can significantly delay outcomes. A general practitioner may simply not be familiar with these specifics, and that gap costs victims weeks, sometimes months.

Applicable Sections of Law

This case is primarily criminal in nature, involving cheating and online fraud. The following provisions apply:

• Section 318 BNS (Cheating): Covers any person who deceives another and induces them to deliver property or pay money. Directly applicable here — the seller induced payment with no intention of delivering goods.
• Section 319 BNS (Cheating by personation): Applicable where the seller misrepresented the identity or legitimacy of the business.
• Section 316(2) BNS (Criminal breach of trust): Relevant where money was accepted for a specific purpose (delivery of goods) and was misappropriated.
• Section 66C and 66D of the Information Technology Act, 2000: Covers identity theft and cheating by personation using a computer resource or communication device — directly applicable to Instagram-based fraud.

Punishment and Penalties

• Section 318 BNS (Cheating): Imprisonment up to 3 years, or fine, or both.
• Section 319 BNS (Cheating by personation): Imprisonment up to 5 years, or fine, or both.
• Section 66D IT Act: Imprisonment up to 3 years and fine up to Rs. 1,00,000.
• Cognizance: Cognizable and non-bailable under Section 319 BNS; cognizable and bailable under Section 318 BNS.
• Compoundable: Section 318 BNS is compoundable with permission of the court; Section 319 BNS is non-compoundable.

Jurisdiction — Where to File the Case

For online fraud complaints, territorial jurisdiction can be exercised from the place where the victim resides, where the transaction was initiated, or where the fraudster operated. The Supreme Court in Bhagwan Dass v. State (NCT of Delhi), 2011 clarified that in cases of cheating via communication, jurisdiction lies at either end of the transaction.

Practically, file your complaint at:

• The local cyber crime police station in your city.
• The cybercrime.gov.in portal (auto-routed to the relevant state cyber cell).
• If police refuse, file before the Chief Judicial Magistrate under Section 175(3) BNSS.

Getting jurisdiction right from the start prevents unnecessary delays and transfer requests that can stall your complaint for months. Frankly, I've seen cases die simply because the initial complaint was filed in the wrong jurisdiction and nobody caught it early enough.

What if Police Refuse to File FIR?

It happens. Cyber cells are understaffed and sometimes reluctant to register FIRs in low-value online fraud cases. But you're not without options.

• Approach the Superintendent of Police (SP): Under Section 173(4) BNSS, you can send a written complaint to the SP of the district. The SP must direct the station to register the FIR if the offence is cognizable.
• File a private complaint before the Magistrate: Under Section 175(3) BNSS, you may approach the Chief Judicial Magistrate directly with a sworn complaint and supporting evidence.
• Writ petition to the High Court: If both options fail, a writ of mandamus can be filed before the jurisdictional High Court directing the police to register the FIR — as upheld in Lalita Kumari v. Government of UP, 2014 (Supreme Court).
• Online complaint escalation: Escalate your cybercrime.gov.in complaint by contacting the nodal officer of the state cyber cell directly.

Rights of the Accused

If the accused is arrested in connection with this matter, they retain the following rights:

• Right against self-incrimination: Under Article 20(3) of the Constitution, no person can be compelled to be a witness against themselves.
• Right to legal representation: Under Article 22 of the Constitution, the accused has the right to consult and be defended by an advocate of their choice.
• Right to be produced before a Magistrate within 24 hours: Guaranteed under Article 22(2) and Section 57 BNSS.
• Right to know grounds of arrest: The police must inform the accused of the grounds of arrest at the time of arrest.
• Right to a copy of the FIR: The accused is entitled to a copy of the FIR under Section 173(2) BNSS.

Bail Provisions

The bail situation depends on which sections are invoked:

• Section 318 BNS is bailable. The accused can apply for bail at the police station itself.
• Section 319 BNS is non-bailable. Bail must be sought before the Magistrate or Sessions Court.
• Regular bail can be applied under Section 480 and Section 483 BNSS before the Magistrate.
• Anticipatory bail under Section 482 BNSS can be sought before the Sessions Court or High Court if arrest is anticipated.
• Typical bail conditions include surrender of passport, periodic reporting to the cyber cell, and not tampering with digital evidence.

Quashing of FIR / Case

If an FIR is registered and the accused believes it's filed maliciously or without basis, quashing can be sought. The High Court exercises inherent powers under Section 528 BNSS to quash FIRs where no prima facie offence is disclosed, or where the complaint is an abuse of legal process.

In fraud cases that are genuinely compoundable (Section 318 BNS), a settlement between the parties — including full refund of the defrauded amount — can be placed before the court as a ground for quashing. The Supreme Court in Gian Singh v. State of Punjab, 2012 held that High Courts may quash even non-compoundable offences in exceptional circumstances if the dispute is essentially private in nature and continuation of criminal proceedings serves no public purpose.

If You Are the Victim

• Act within 24-48 hours of discovering the fraud: The earlier you file a cyber complaint, the higher the chance of tracing the payment trail before the fraudster withdraws or transfers funds.
• Report to your UPI app or bank immediately: Apps like PhonePe, Google Pay, and Paytm have fraud reporting helplines. Request a freeze on the recipient account if the transaction is recent.
• File on cybercrime.gov.in with your transaction ID, screenshots, and the seller's phone number — these are your core evidence.
• Don't contact the fraudster repeatedly: Doing so may alert them and they may move funds or delete further digital trails.
• Consult an advocate before escalating to court — especially to ensure your complaint is framed correctly under the applicable BNS provisions and IT Act sections.

Documents You Must Keep Ready

• Aadhaar card and PAN card (identity proof)
• Screenshot of the Instagram page (or archived/cached version)
• UPI transaction screenshot showing amount, date, recipient UPI ID, and transaction reference number
• Bank statement showing the debit
• All chat screenshots with the seller (WhatsApp, Instagram DM, SMS)
• Phone number(s) associated with the fake store
• Any email communication or order confirmation received
• Copy of the complaint filed on cybercrime.gov.in with acknowledgment number

What Evidence Is Required?

• UPI transaction record: Primary evidence — confirms money was transferred to a specific account/UPI ID.
• Screenshot of the fake Instagram page: Establishes the fraudulent storefront and the representation made to you.
• Phone number linked to the seller: Can be used to trace the account holder through telecom records via police.
• Chat history: Establishes that a transaction was agreed to and goods were promised but not delivered.
• Bank statement: Corroborates the payment; treated as a secondary document supporting the UPI record.
• Cybercrime complaint acknowledgment: Shows that the matter was reported promptly, which courts and investigators consider in evaluating credibility.
• Device metadata / IP logs (if available): Advanced evidence that investigating agencies can subpoena from Instagram/Meta and telecom providers.

How the Police Behave in Such Cases

Make no mistake — cyber cells across most Indian cities are stretched thin. In cases involving amounts under Rs. 10,000, there is often initial reluctance to register a formal FIR. Officers may suggest filing an online complaint instead and waiting for auto-escalation. This isn't always sufficient. If the amount is higher or if multiple victims are involved, police tend to be more responsive. In Arnesh Kumar v. State of Bihar, 2014, the Supreme Court cautioned against mechanical arrests, but also made clear that cognizable offences must be investigated. If your complaint is backed by solid digital evidence and is framed with the right statutory provisions, the cyber cell's posture typically changes.

Timeline of Legal Process

• Day 1-2: File complaint on cybercrime.gov.in and with local cyber cell. Raise UPI dispute with bank.
• Week 1-2: Cyber cell acknowledges complaint; bank initiates dispute investigation.
• Week 2-4: Police may trace the UPI account holder via telecom and banking records; FIR registered if evidence is sufficient.
• Month 1-3: Investigation period. Police collect call data records, bank statements, device info from telecom companies.
• Month 3-6: Chargesheet filed under Section 193 BNSS before the Magistrate if accused is identified.
• Month 6-12: Cognizance taken by

Advocate Sudhir Rao, Supreme Court of India