Cheated by a Packaging Company in Indore? Here's Your Legal Remedy for Recovery

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: If a packaging company in Indore took Rs 1 lakh from you for food pouches and then vanished without delivering the goods or returning your money, that is cheating under Section 318 of the Bharatiya Nyaya Sanhita, 2023. A criminal complaint for fraud, read with a civil suit for breach of contract and recovery, is the correct path. However, if the initial case filed by you is stalled, you likely need a lawyer who understands the specific procedural nuances of commercial fraud cases to push the matter forward effectively.

In April 2025, a small business owner named Arjun Mehta from Gomti Nagar, Indore, approached the Chamber of Advocate Sudhir Rao. He had paid a packaging agency, "Reliance Retail Packers," Rs 1 lakh to manufacture custom food pouches for his startup. The proprietor, Vikram Malhotra, took the advance and promised delivery within three weeks. Nothing arrived. Calls were ignored. Its been six months now. Arjun had filed a case on his own, but it was stuck — no progress, the accused seemed to have absconded. Worse, he found over a dozen similar complaints on Google Reviews about the same company.

Arjun felt lost. The police had registered an FIR but had not arrested anyone. The file was collecting dust. That's when he decided to get professional help. Advocate Sudhir Rao's office took over the matter, and the approach changed entirely.

Here's the thing — commercial frauds involving absconding accused are not like simple theft cases. The standard police investigation process often stalls because the investigating officer doesn't know how to freeze bank accounts or track digital footprints of a vanished entity. Advocate Sudhir Rao and his office argued for the immediate attachment of the accused's bank accounts and a detailed forensic audit of his transactions. They also filed a separate application for a non-bailable warrant under the BNSS. Within 40 days, Vikram Malhotra was apprehended at a bus stand in Nagpur. The recovered amount — Rs 75,000 — was deposited in court. The case now proceeds for the remaining recovery.

Make no mistake: without domain-specific experience in handling absconding commercial fraudsters, this favorable outcome would not have been possible. The procedural strategies — like using the google review patterns as evidence of a common dishonest intention from the start — were critical.

Key Facts of the Case

• Arjun Mehta paid Rs 1,00,000 (one lakh) as an advance for food pouches to Reliance Retail Packers, Indore, in March 2025.
• The owner, Vikram Malhotra, failed to deliver the pouches and did not return the money for six months.
• The accused absconded after receiving payments from multiple victims, as confirmed by similar Google Reviews.
• An FIR was filed under Section 318 BNS (Cheating) at Gomti Nagar Police Station, Indore, but the investigation was stalled.
• Advocate Sudhir Rao's office filed for attachment of bank accounts and a non-bailable warrant, leading to the accused being caught and partial recovery of Rs 75,000.
• The case demonstrates the importance of acting quickly to preserve digital evidence and trace the accused before they disappear completely.

The Direct Legal Answer

The core question is: what legal remedies are available when a packaging company takes money and disappears?

Can I file a criminal case for cheating?

Yes. Under Section 318 of the Bharatiya Nyaya Sanhita, 2023, cheating is a criminal offence. If the accused took your money with a dishonest intention from the start — meaning they never intended to deliver the goods — that's fraud. The fact that he promised to return the money but didn't, and then absconded, strengthens this case. You can file an FIR at the police station where the transaction happened or where the accused is located.

What if the police don't investigate?

Don't wait. If the investigation is stalled, your advocate can file an application before the Judicial Magistrate First Class under Section 175(3) BNSS for a private complaint. The court can then direct the police to investigate or take cognizance directly.

Can I also file a civil case?

Absolutely. A civil suit for breach of contract and recovery is separate from the criminal case. You can claim the money back plus interest and damages. The criminal case punishes the accused; the civil case recovers your money.

Advice in Such Cases

First, do not waste time. The longer you wait, the harder it is to trace the accused or recover the amount. An absconding fraudster moves funds, changes phones, and disappears. Act within the first week itself.

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.

Second, gather all evidence immediately — payment receipts, bank statements, WhatsApp chats, emails, and the Google Reviews from other victims. These reviews are gold because they show a pattern of fraudulent conduct. Your advocate can use them to argue that the accused had a common dishonest intention against multiple victims.

Third, file a separate application for freezing the accused's bank accounts. This prevents him from withdrawing the money. The court can pass an order under Section 108 BNSS for attachment of property believed to be stolen or fraudulently obtained.

And here's a key point: matters involving absconding commercial fraudsters require a lawyer who regularly handles such cases. The procedural strategy — like seeking a non-bailable warrant under Section 486 BNSS or filing an application for production warrant — is nuanced. A general practitioner may not know the exact steps to push the police into action or to approach the Magistrate for a production warrant against an accused who has been traced.

Applicable Sections of Law

• Section 318 BNS (Cheating): Covers the criminal offence of fraudulently inducing a person to deliver property. Punishable with imprisonment up to 3 years and fine.
• Section 319 BNS (Cheating with knowledge that wrongful loss may ensue): A more serious form of cheating where the accused knew the deception would cause wrongful loss. Punishment can extend to 7 years and fine.
• Section 108 BNSS (Attachment of property): Allows a police officer or Magistrate to attach property that is suspected to be stolen or fraudulently obtained.
• Section 486 BNSS (Non-bailable warrant): Allows the court to issue a non-bailable warrant against an absconding accused to compel their presence.
• Indian Contract Act, 1872 — Section 73: Entitles a party to claim compensation for loss or damage caused by breach of contract.

Punishment and Penalties

Under Section 318 BNS, cheating is punishable with imprisonment of up to 3 years, fine, or both. If the case falls under Section 319 BNS (cheating with knowledge of causing wrongful loss), the punishment can extend to 7 years and fine. The offence under Section 318 is non-cognizable and bailable. But in practice, if the accused has absconded and the fraud is proven, the court often treats it as a cognizable offence for investigation purposes. The accused can be arrested, and bail may be opposed by the prosecution. The offence is compoundable only with the permission of the court, meaning you can settle the case out of court if the accused returns the money and pays compensation.

Jurisdiction — Where to File the Case

For the criminal case, file the FIR at the police station where the payment was made or where the accused resides. In Arjun's case, it was Gomti Nagar Police Station, Indore. For the civil suit, you file in the civil court (or consumer forum) where the cause of action arose — typically where the contract was made or where the delivery was supposed to happen. The consumer complaint under the Consumer Protection Act, 2019 can be filed in the District Consumer Disputes Redressal Commission if the amount is up to Rs 1 crore.

What if Police Refuse to File FIR?

It happens. Police often delay or refuse in cheating cases because the offence is technically non-cognizable. Here's what you can do:

• Approach the Superintendent of Police (SP) under Section 173(4) BNSS with a written complaint and request a direction to the SHO to register the FIR.
• If the SP doesn't act, file a private complaint before the Judicial Magistrate First Class under Section 175(3) BNSS. The Magistrate can direct the police to investigate.
• As a last resort, file a writ petition under Article 226 of the Constitution in the High Court seeking a direction to the police to register the FIR.
• Do not give up. The Google Reviews and your payment proof are enough to compel the Magistrate to take cognizance.

Rights of the Accused

• Right to remain silent: Under Article 20(3), the accused cannot be compelled to be a witness against themselves.
• Right to legal representation: Article 22(1) guarantees the right to consult and be defended by a legal practitioner of their choice.
• Right to be produced before a Magistrate: Under Section 58 BNSS, the accused must be produced before a Magistrate within 24 hours of arrest.
• Right to copy of FIR: The accused is entitled to a copy of the FIR and the grounds of arrest, as per Section 173(3) BNSS.
• Right to bail: If the offence is bailable, the accused has the right to be released on bail at the police station itself. For non-bailable offences, the court decides based on the severity of the crime and flight risk.

Bail Provisions

Under Section 318 BNS, the offence is bailable. This means the accused can get bail from the police station itself by furnishing a bond. However, if the accused has absconded or there is evidence of tampering with witnesses, the police or court can impose conditions. For anticipatory bail (pre-arrest bail), the accused can approach the Sessions Court under Section 482 BNSS. But in a case where the accused has already absconded, anticipatory bail is rarely granted. Regular bail under Sections 480/483 BNSS is decided by the Magistrate or Sessions Court based on factors like the amount involved, likelihood of fleeing, and whether the investigation is complete. Our strategy was to oppose bail vigorously, arguing that the accused had a pattern of cheating multiple victims and had already absconded once.

Quashing of FIR / Case

The accused can file a petition under Section 528 BNSS before the High Court to quash the FIR or the entire criminal proceedings. Grounds include: (a) no prima facie offence is made out, (b) the complaint is malicious and an abuse of process of law, (c) the matter is purely civil and no criminal intent exists. In a case where the accused has already absconded and similar complaints exist, quashing is nearly impossible. The High Court will not entertain such a petition because the evidence of fraud is substantial and the accused's conduct shows dishonest intention. However, if the accused pays back the entire amount and the victim consents, the court may compound the offence and quash the proceedings.

If You Are the Victim

• Do not delay. Immediately file a police complaint and a civil recovery suit in parallel.
• Preserve all evidence: payment receipts, bank statements, WhatsApp chats, emails, and Google Reviews.
• Freeze the accused's bank accounts — approach the court for an attachment order under Section 108 BNSS.
• Engage an advocate who has experience with commercial fraud cases. General practitioners may not know the procedural shortcuts like filing a private complaint under Section 175(3) BNSS.
• Do not confront the accused directly — let the legal process take its course.

Documents You Must Keep Ready

• Identity proof: Aadhaar card, PAN card, and voter ID.
• Payment proof: bank transfer receipts, cheque copies, or UPI transaction screenshots.
• Contract/agreement: any written or oral agreement, quotation, or invoice from the packaging company.
• Communication records: WhatsApp chats, emails, call recordings, and SMS exchanges showing promises and subsequent evasion.
• Google Reviews: screenshots of similar complaints from other customers.
• Bank statements: showing the debit of Rs 1 lakh from your account.
• Proof of your business: GST registration, business license, or invoice book to establish the commercial context.
• Any acknowledgment of receipt of money signed by the accused.

What Evidence Is Required?

• Payment evidence: Bank transfers, UPI receipts, or cheque deposits showing the amount paid.
• Communication evidence: Messages, emails, or call recordings showing the accused promised delivery and later failed to respond.
• Pattern evidence: Google Reviews or complaints from other victims demonstrating a common dishonest scheme.
• Witness testimony: If there were witnesses to the deal or to the accused's promises, their statements can be recorded under Section 183 BNSS.
• Primary evidence: The original contract or quotation (if in writing) — this is primary evidence.
• Secondary evidence: Certified copies of bank statements, WhatsApp screenshots, and printouts of Google Reviews — admissible if the originals are inaccessible.

How the Police Behave in Such Cases

Police often view cheating cases as civil disputes disguised as criminal complaints. They may ask you to "sort it out" or "file a civil suit." But if you present concrete evidence — payment records, clear promises, and proof of the accused absconding — they are bound to register an FIR. In practice, the investigating officer may delay the investigation if the accused is not traceable. That's why you need to follow up regularly. The police are also reluctant to freeze bank accounts without a court order. So, be ready to approach the court directly for attachment orders.

Timeline of Legal Process

• FIR filing: 1-3 days if the police cooperate; up to 2 weeks if you need to approach the Magistrate under Section 175(3) BNSS.
• Investigation: 2-4 months to trace the accused, freeze accounts, and file chargesheet.
• Cognizance by Magistrate: 1-2 months after chargesheet is filed.
• Trial: 6-12 months if the accused is arrested and the evidence is clear.
• Judgment: Can take 12-24 months from filing if contested fully.
• Execution (for civil recovery): Once decree is passed, execution can take 3-6 months if the accused has assets.

How Long Will the Investigation Take?

The investigation in a cheating case under Section 318 BNS typically takes 2-4 months if the accused is traceable. If the accused has absconded, the police may take 6-8 months to locate them, especially if they have moved to another state. The charge must be filed within 90 days of arrest for non-bailable offences. In Arjun's case, the accused was traced in 40 days due to the proactive approach of freezing his bank accounts and tracking his digital trail.

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?

Yes, if the accused returns the money and you agree to withdraw the case. Under criminal law, Section 318 BNS is compoundable with the permission of the court. This means you can settle the matter mutually, and the court will acquit the accused upon such settlement. For the civil part, you can execute a compromise deed and file a joint application for disposal. Settlement through mediation or Lok Adalat is also possible — the Consumer Forum or civil court can refer the matter under Section 89 CPC. Settlement is advisable if the accused is genuine and the amount is recovered quickly. But if the accused has a pattern of fraud, do not settle — let the case proceed to deter him from cheating others.

Common Mistakes People Make

• Delaying the complaint: Waiting for months gives the accused time to abscond or transfer funds. File within the first week.
• Destroying evidence: Deleting WhatsApp chats, call logs, or emails because you are angry. Preserve everything.
• Confronting the accused directly: This can lead to threats, physical harm, or the accused fleeing. Leave it to the police and lawyers.
• Posting on social media: Venting on Facebook or Twitter can compromise your legal case and alert the accused. Avoid it.
• Engaging a lawyer without domain-specific experience: This is a critical error. A general practitioner may file a simple civil suit or a vague criminal complaint that leads nowhere. A specialist in commercial fraud knows the exact procedural steps — like filing for attachment of accounts, seeking non-bailable warrants early, and using evidence of pattern fraud. Without that, your case can remain stuck for years.
• Filing only a criminal or only a civil case: You need both. Criminal case punishes the accused; civil case recovers your money. Missing one weakens your overall position.

FAQs People Normally Have

Can I get my money back through the criminal case itself?

Yes. The court can order the accused to pay compensation to the victim under Section 346 BNSS or Section 357 of the Code of Criminal Procedure (now subsumed in BNSS provisions). But the primary route for recovery is a civil suit or consumer complaint. The criminal case's main goal is punishment.

What if the accused has no bank accounts or assets?

Then recovery becomes harder. But the criminal case can still proceed. The court can order the accused to pay compensation, and if he doesn't, you can file an execution petition to attach his salary (if employed) or future assets. Do not lose hope.

How do I know if the accused had dishonest intention from the start?

Look at the pattern: did he take money from multiple people? Did he promise delivery but never deliver? Did he change his phone number or address? Did he give false tracking numbers or excuses? Google Reviews from other victims are strong evidence of pre-existing dishonest intention.

Can I file a case in the consumer forum for this?

Yes. The packaging company provided a service (manufacturing pouches) for a fee, so it qualifies as a "service" under the Consumer Protection Act, 2019. You can file a complaint before the District Consumer Disputes Redressal Commission for deficiency in service and unfair trade practice. The forum can order a refund with interest plus compensation for mental agony.

What if the accused files a counter-case against me?

That's a common tactic. He may file a false complaint alleging that you are harassing him or that you owe him money. Stand firm. Your evidence of payment and his promises will defeat such a counter-case. Your advocate can apply for its quashing under Section 528 BNSS if it is frivolous.

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.