Cyber Fraud Complaint Rejected by Police? Here Is Your Legal Remedy

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: When police or cybersecurity authorities reject your cyber fraud complaint, you have legal remedies — including approaching senior police officers, filing a private complaint before a Magistrate, or seeking High Court intervention. Act fast. Delay weakens your case.

An elderly couple in Nagpur — let's call them Mr. and Mrs. Sanjay Khanna — lost ₹95,000 through a classic remote-access scam. The fraudsters called, pretending to be from a telecom company. They convinced the couple to install an app on their phone. Within minutes, money was siphoned out. The Khannas contacted their bank immediately. They filed a complaint with the local cyber cell too. A shadow credit appeared on their account after a week. Hope flickered. Then, a month later — the complaint number was rejected. No explanation. Just silence. Frustrated and scared, they approached the Chamber of Advocate Sudhir Rao. Their earlier efforts had yielded nothing. The office took over. Advocate Sudhir Rao and his office argued that the rejection was procedurally invalid — no reason, no opportunity to respond. They filed a representation before the Superintendent of Police under Section 173(4) of the BNSS, 2023. The district cyber cell was directed to register an FIR. The matter is now under investigation. The specialised handling — knowledge of BNSS provisions on complaint handling, cyber evidentiary standards, and banking protocols — made the difference.

Key Facts of the Case

• The fraud occurred via a remote-access app installed on the victims' phone.
• ₹95,000 was transferred from the couple's savings account without their consent.
• The bank issued a shadow credit within 7 days but did not make it permanent.
• The cyber cell assigned a complaint number but rejected it after one month without written reasons.
• The victims had no written communication explaining the basis of rejection.
• Approaching the senior police officer under BNSS provisions compelled action.
• An FIR was registered after the higher authority intervened.

The Direct Legal Answer

Can the cyber cell reject a complaint without giving reasons?

No. Under settled law, when a complaint discloses a cognizable offence, the police must register an FIR. Rejection without reasons is procedurally improper. You can challenge it.

What should I do if my complaint number is rejected?

First, demand a written reason. Then approach the Superintendent of Police in writing under Section 173(4) of the BNSS. If that fails, file a private complaint before the Judicial Magistrate First Class under Section 175(3) BNSS. As a last resort, approach the High Court under its writ jurisdiction.

Is the bank liable for the loss?

Banks may be liable under RBI circulars on customer protection in digital frauds — but only if you reported the fraud promptly. File a complaint with the Banking Ombudsman if the bank refuses to reverse the fraudulent transaction.

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.

Second, preserve all evidence — call recordings, app installation dates, SMS, bank statements, transaction IDs. Third, do not delete any data from the phone. Cyber forensic analysis may be needed later.

This type of matter — cyber fraud with police inaction — demands a lawyer who regularly handles criminal litigation and cyber law. General practitioners often miss the procedural routes available under BNSS. That can cost you weeks.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), 2023, the primary offences are cheating by personation (Section 318) and criminal breach of trust (Section 316). If the fraud involves identity theft, Section 319(2) applies. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, the key sections are Section 173(4) (complaint to senior police officer when FIR is refused) and Section 175(3) (private complaint before Magistrate). The Information Technology Act, 2000 — Sections 43 (penalty for unauthorized access) and 66 (computer-related offences) — also applies to digital fraud.

Punishment and Penalties

Under Section 318 BNS, cheating by personation carries a punishment of up to 5 years imprisonment, fine, or both. Section 316 BNS (criminal breach of trust) carries up to 7 years imprisonment and fine. These offences are cognizable and non-bailable. They are compoundable only with court permission in certain circumstances. The fine amount is at the court's discretion, typically proportionate to the loss.

Jurisdiction — Where to File the Case

For filing an FIR, the jurisdiction lies with the police station in the area where the fraud occurred or where the money was debited. For private complaints, approach the Judicial Magistrate First Class within that territorial jurisdiction. If the police refuse to act, the High Court's writ jurisdiction can be invoked under Article 226 of the Constitution. Jurisdiction matters because a wrongly filed complaint may be returned or dismissed on technical grounds.

What if Police Refuse to File FIR?

If the police refuse to register an FIR on your complaint of a cognizable offence:

• Approach the Superintendent of Police (SP) in writing under Section 173(4) BNSS. The SP can order the SHO to register an FIR.
• File a private complaint before the Judicial Magistrate First Class under Section 175(3) BNSS.
• As a last option, file a writ petition before the High Court seeking directions to register an FIR.
• Document every refusal — get it in writing, preserve call recordings, and keep copies of your complaint.

Rights of the Accused

Every accused in a criminal case enjoys these fundamental rights:

• Right to remain silent and protection against self-incrimination under Article 20(3) of the Constitution.
• Right to be informed of the grounds of arrest under Article 22(1).
• Right to consult and be defended by a legal practitioner under Article 22(1).
• Right to be produced before a Magistrate within 24 hours of arrest under Section 58 BNSS.
• Right to a copy of the FIR and all documents relied upon by the prosecution.

Bail Provisions

Offences under Sections 318 and 316 BNS are non-bailable. Bail in such cases is not a matter of right — the court considers the gravity of the offence, antecedents of the accused, and likelihood of tampering with evidence. Anticipatory bail can be sought under Section 482 BNSS before arrest. Regular bail applications are filed under Section 480 or 483 BNSS after arrest. Experienced criminal counsel can strategise the timing and forum for bail.

Quashing of FIR / Case

The High Court has inherent powers under Section 528 BNSS to quash an FIR or criminal proceedings. Grounds include: the FIR does not disclose a prima facie offence, the matter is purely civil in nature, or the parties have compromised in a compoundable offence. Quashing is a strategic option in cyber fraud cases where the complaint is malicious or lacks basic evidentiary support. However, in genuine fraud cases, quashing is rarely granted.

If You Are the Victim

• Do not delay — report the fraud to the bank and police immediately.
• Preserve all digital evidence: SMS, call logs, app installation timestamps, screenshots.
• Never delete apps or data from the phone — they are evidence.
• Demand a written acknowledgment or rejection from the police.
• Engage a lawyer who handles cyber fraud and criminal procedure — not a general civil lawyer.

Documents You Must Keep Ready

• Identity proof — Aadhaar, PAN card of the victim.
• Bank statements showing the fraudulent debit and any shadow credit.
• Transaction IDs, UPI references, or NEFT/RTGS details.
• Screenshots of the fraudulent calls, app installation prompts, and messages.
• Copy of the complaint filed with the cyber cell and its acknowledgment/rejection.
• Any correspondence with the bank regarding the fraud.
• Call detail records (CDR) if available from the telecom provider.
• Affidavit of the victim detailing the sequence of events.

What Evidence Is Required?

• Primary evidence: the victim's own testimony, bank records showing the debit.
• Digital evidence: screenshots, call recordings, SMS logs, app download records.
• Secondary evidence: certified copies of bank statements, call records from the telecom company.
• Forensic evidence: analysis of the remote-access app installed on the phone (may require expert report).
• Documentary evidence: all correspondence with the bank and police.
• Witness testimony: any family member or neighbour who observed the fraud.
• Note: Primary evidence is direct and firsthand. Secondary evidence is derivative but admissible when properly certified.

How the Police Behave in Such Cases

Police behaviour in cyber fraud cases varies widely. Some officers dismiss complaints as "civil matters" or "bank errors." Others may demand excessive documentation before acting. Complaints are sometimes assigned a number but never investigated — then quietly rejected. That is precisely what happened to the Khannas. Knowing the procedural law — insisting on written orders, citing BNSS provisions, escalating to senior officers — often forces action where informal requests fail.

Timeline of Legal Process

• FIR registration: can take days to weeks if police resist. Senior officer intervention may expedite.
• Investigation: typically 60-90 days. Chargesheet must be filed within that period or the accused gets default bail.
• Cognizance by Magistrate: 1-2 months after chargesheet filing.
• Framing of charges: another 1-2 months.
• Trial: 6 months to 2 years depending on court workload and witness availability.
• Judgment: varies widely. Appeals to Sessions Court or High Court follow.
• Practical note: cyber fraud trials are often faster than traditional crimes if digital evidence is properly preserved.

How Long Will the Investigation Take?

Police investigation in cyber fraud cases typically takes 60 to 90 days. The investigating officer must file a chargesheet or closure report within that period under Section 193 BNSS. If the investigation is incomplete within 60 days, the accused has a right to default bail. Victims should follow up every 15-20 days with the IO to check progress.

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?

Cyber fraud offences under BNS are not compoundable without court permission — meaning the accused cannot simply pay off the victim and walk away. However, if the accused returns the stolen amount and the victim is willing, the court may consider a lenient sentence or accept a compromise in appropriate cases. Pre-litigation mediation is uncommon in criminal fraud matters. Lok Adalat jurisdiction is limited for criminal cases except for certain compoundable offences.

Common Mistakes People Make

• Delaying the complaint — every day reduces the chance of recovering the money and tracing the fraudster.
• Deleting the fraudulent app or clearing phone data — this destroys crucial forensic evidence.
• Not preserving bank transaction details and SMS immediately.
• Relying only on verbal complaints — always get a written acknowledgment, even if it is just an email.
• Engaging a lawyer who does not regularly handle criminal or cyber cases — procedural nuances under BNSS, evidentiary standards for digital evidence, and escalation routes are often missed by general practitioners. That delay can be fatal.
• Posting details on social media — this can prejudice the investigation and be used by the accused's counsel.

FAQs People Normally Have

Can I get my money back after a cyber fraud?

Possibly. If you reported the fraud within 3 working days to the bank, the bank is liable under RBI guidelines. If the money has moved to a mule account, freezing it early may help recovery. But recovery is never guaranteed.

What is a shadow credit?

A shadow credit is a provisional reversal of the fraudulent transaction by the bank while they investigate. It is not permanent. If the investigation finds that you authorised the transaction (even under fraud), the bank may reverse it back.

Can I approach a court directly without an FIR?

Yes. You can file a private complaint before the Judicial Magistrate First Class under Section 175(3) BNSS. The Magistrate can direct the police to investigate under Section 176 BNSS.

What if the accused is not in India?

Cyber fraud often involves cross-border elements. Interpol assistance and mutual legal assistance treaties (MLATs) may be used. However, prosecution becomes significantly harder. Prevention and early freezing of funds are more practical.

Can the case be closed without my consent?

No. The police can file a closure report if they find no evidence. But the victim is entitled to notice and can file a protest petition challenging the closure. The court decides ultimately.

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 Delhi criminal defence lawyer — 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.