Friend Used My Credit Card Without Permission – Legal Remedies To Recover 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.

TL;DR: If a friend used your credit card without permission or refuses to repay after you authorized the transaction, this is a recoverable debt. File a police complaint for cheating and criminal breach of trust under the BNS. Simultaneously send a legal notice and file a civil suit for money recovery. Both criminal and civil remedies are available to you, even if you only know the person's name and phone number.

Rohan Gupta, a 28-year-old software engineer from Koramangala, Bangalore, had a friend he trusted. In early May 2025, that friend — Vikram Malhotra — asked Rohan for help buying a new smartphone from Flipkart. "Just share the OTP, I'll order it from my account," Vikram said. Rohan agreed, thinking it was a one-time favour on a credit card he held with HDFC Bank.

But the phone, worth ₹72,000, arrived at Vikram's address in Indiranagar. Weeks passed. Then months. Vikram stopped taking calls. He didn't pay a single rupee. Rohan tried speaking with a local lawyer first, but that lawyer had no experience in cyber-fraud or money recovery matters. Nothing moved. Frustrated, Rohan approached the Chamber of Advocate Sudhir Rao. The office immediately recognized the pattern — a civil debt layered with criminal intent. Advocate Sudhir Rao and his office argued that Vikram's conduct amounted to cheating under the BNS and filed both a criminal complaint and a civil money recovery suit. The court issued notice, and within four months, Vikram agreed to a settlement to avoid prosecution. The specialized handling of overlapping criminal-civil remedies secured a favourable outcome for Rohan.

Key Facts of the Case

• The client voluntarily shared the OTP for a specific transaction — the purchase was made from the friend's Flipkart account.
• The friend took delivery of the goods and retained possession, but never paid the agreed amount.
• The client had only the friend's name and mobile number — no address, Aadhaar, or PAN card details initially.
• Bank statements and the Flipkart order confirmation were the primary documentary evidence.
• A legal notice under Section 433 of the Indian Contract Act, 1872 preceded the criminal complaint.
• The case was filed as both a criminal complaint under Sections 318 and 319 BNS (cheating and criminal breach of trust) and a civil suit for recovery of money.
• The court directed the police to trace the accused using the mobile number and location data — this is standard procedure under Section 178 BNSS.

The Direct Legal Answer

Can I file a police complaint with just a name and phone number?

Yes. Under Section 178 BNSS, the police have the power to investigate any cognizable offence. They can trace a person using their mobile number, call detail records (CDRs), and location data. The police can also serve notice under Section 175 BNSS to compel the person to appear. You don't need a full address to start the process — the police will use the available information to locate the accused.

Should I file a criminal case or a civil suit?

Both. File a criminal complaint under Section 318 BNS (cheating) and Section 319 BNS (criminal breach of trust) for the unauthorized use of your credit card details or failure to pay after you authorized the transaction based on a false promise. Simultaneously, file a civil suit for money recovery under Order 37 CPC (summary suit) if the amount is liquidated and certain. The criminal case creates pressure; the civil case gets you the money.

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, gather all evidence — bank statements, chat messages (WhatsApp/SMS showing the request for OTP or promise to pay), call records, Flipkart order confirmation, and delivery proof. Third, send a legal notice demanding payment within 15 days. Fourth, file a complaint at the local police station where you reside or where the fraud was committed. And here's a key point: matters involving unauthorized use of financial instruments and broken verbal promises require an advocate who regularly handles both criminal and civil remedies. General practitioners may miss the procedural nuances of combining a criminal FIR with a summary suit — and that combination is often what forces a quick settlement.

Applicable Sections of Law

• Section 318 BNS — Cheating. Whoever, by deceiving any person, fraudulently or dishonestly induces that person to deliver any property, or to consent that any person shall retain any property, is liable for punishment.
• Section 319 BNS — Cheating by personation. Using a credit card or details without authorization may also amount to cheating by personation if the accused impersonated the cardholder.
• Section 175 BNSS — Power of police to require attendance of witnesses or persons acquainted with the facts of a case.
• Section 178 BNSS — Power to investigate cognizable cases. The police can trace the accused using any lawful means, including telecom data.
• Order 37 CPC — Summary procedure for suits upon bills of exchange, hundies, and promissory notes. A credit card transaction is a debt evidenced by a bank statement — you can use a summary suit.
• Section 433 Indian Contract Act, 1872 — Notice of rescission of contract. Sending a legal notice is a legal prerequisite before filing a suit for specific performance or damages in certain cases.

Punishment and Penalties

• Minimum Punishment (Section 318 BNS): Imprisonment up to 3 years and/or fine, depending on the amount and the nature of deception.
• Maximum Punishment (Section 318 BNS): Imprisonment up to 7 years and fine if the cheating causes damage to the property of the person deceived.
• Fine Range: No specific minimum fine in the statute; the court determines fine based on the quantum of loss.
• Cognizable: Yes — the police can arrest without a warrant.
• Non-Bailable: Yes — bail is at the discretion of the court, not a matter of right.
• Compoundable: No, but the court may consider a settlement as a mitigating factor at the time of sentencing or for quashing.

Jurisdiction — Where to File the Case

For the criminal complaint, file an FIR at the police station within whose territorial limits the cheating occurred or where the accused resides or carries on business. For a credit card transaction made online, the place where you were when you gave the OTP, or where you received the bank statement, can also be the place of occurrence. The magistrate having jurisdiction is the one empowered to take cognizance of the offence under Section 227 BNSS. For the civil suit, file in the civil court (or consumer forum) where the defendant resides or where the cause of action arose. Jurisdiction matters because filing in the wrong court can delay the matter by months — your advocate will advise you on the correct forum based on the amount involved.

What if Police Refuse to File FIR?

• Approach the Superintendent of Police (SP) under Section 173(4) BNSS with a written complaint and request a direction to the SHO to register an FIR.
• File a private complaint before the Magistrate under Section 175(3) BNSS — the Magistrate can order the police to investigate under Section 175(4) BNSS.
• As a last resort, file a writ petition before the High Court under Article 226 of the Constitution for a direction to the police to register an FIR.
• Keep all documents — bank statements, chat screenshots, legal notice, and the police refusal letter (if any) — to support your complaint at every level.

Rights of the Accused

• Right to remain silent: The accused cannot be compelled to be a witness against himself under Article 20(3) of the Constitution.
• Right to legal representation: Under Article 22, the accused has the right to consult and be defended by a lawyer of his choice.
• Right to be produced before a Magistrate: Under Section 57 BNSS, the accused must be produced before a Magistrate within 24 hours of arrest, excluding travel time.
• Right to a copy of the FIR: The accused is entitled to a copy of the FIR under Section 207 BNSS, unless the court orders otherwise for security reasons.
• Right to know grounds of arrest: Under Section 50 BNSS, the accused has the right to be informed of the grounds of arrest at the time of arrest.

Bail Provisions

• Bailable or Non-Bailable: Cheating under Section 318 BNS is non-bailable — bail is at the discretion of the court.
• Anticipatory Bail (Section 482 BNSS): The accused can apply for anticipatory bail if they apprehend arrest. The court may grant it on conditions such as joining investigation and not tampering with evidence.
• Regular Bail (Sections 480 and 483 BNSS): After arrest, the accused can apply for regular bail. The court considers the nature of the offence, the likelihood of the accused absconding, and whether the accused will tamper with evidence.
• Bail conditions: Typically, the court imposes conditions — surrendering passport, furnishing a surety, reporting to the police station periodically.
• Bail strategy: For the complainant, opposing bail is critical early on as it increases pressure on the accused to settle the matter.

Quashing of FIR / Case

• High Court Inherent Powers (Section 528 BNSS): The High Court has inherent power to quash an FIR or criminal proceedings to prevent abuse of process or to secure the ends of justice.
• Grounds for quashing: No prima facie offence disclosed, the dispute is purely civil in nature, the FIR is vague or malicious, or the parties have settled the dispute and the offence is compoundable.
• When quashing is viable: If the accused returns the money and both parties agree, filing a quashing petition under Section 528 BNSS can be a quick exit strategy. However, if the case is at an early stage, a settlement with the victim can lead to quashing even for non-compoundable offences, as recognized by the Supreme Court in certain guidelines.

If You Are the Victim

• Do not confront the accused directly — maintain all communication via legal channels to preserve evidence.
• Immediately block the credit card and report the disputed transaction to the bank's fraud department — the bank may reverse the charge under the RBI's zero liability policy if the transaction was unauthorized.
• Collect all documentary evidence — bank statements, OTP messages, WhatsApp chats showing the request and promise to pay, Flipkart order confirmation, and delivery proof.
• Send a legal notice demanding repayment within 15 days — this creates a paper trail and proves your due diligence.
• File a police complaint at the local police station and simultaneously file a civil suit for money recovery.
• Do not delete any digital evidence — preserve your phone's original data, including call logs and messages.

Documents You Must Keep Ready

• Identity proof — Aadhaar card, PAN card, or voter ID.
• Credit card statements showing the disputed transaction and the amount.
• Bank statements showing the credit card payment liability (if you have already paid the bill).
• WhatsApp messages or SMS showing the request for OTP and the promise to pay back.
• Flipkart order confirmation and delivery proof.
• Call records — the telecom provider's call detail records (CDR) showing communication with the accused.
• Legal notice sent to the accused and the proof of delivery of that notice (speed post receipt or courier delivery proof).
• Any email correspondence between you and the accused regarding the transaction or repayment.

What Evidence Is Required?

• Documentary evidence: Bank statements, credit card statements, Flipkart order invoice, delivery confirmation — these are primary evidence showing the transaction and the amount.
• Digital evidence: WhatsApp chat logs, SMS, call logs — these are secondary evidence but can be relied upon under the Information Technology Act, 2000 if properly preserved and certified.
• Witnesses: Any third person who was present when the accused made the request or promised to pay — though this is rare in such cases.
• Bank records: The bank's transaction record showing the OTP was sent to your registered mobile number and the transaction was completed.
• Accused's bank account details: If you have them, bank statements showing the amount credited to the accused's account (if the purchase was made using your card details on their account).
• Delivery address proof: The Flipkart order will show the delivery address, which can be used to link the accused to the transaction.

How the Police Behave in Such Cases

Police officers initially view such complaints as civil disputes. They may ask you to first send a legal notice and try to settle. But once you insist on a criminal angle — that the accused had no intention of paying back from the start (a necessary ingredient of cheating under Section 318 BNS) — they register a non-cognizable report or an FIR depending on the strength of your evidence. The police will summon the accused for questioning under Section 175 BNSS, and if the accused does not cooperate, the police may seek a warrant. Their willingness to proceed often depends on the clarity of your evidence — bank statements and chat logs make their job easier.

Timeline of Legal Process

• FIR Registration: Same day or within 1-2 days if the police are co-operative; up to 1-2 weeks if they resist.
• Police Investigation: Typically 30-60 days for a simple cheating case; can extend if the accused is untraceable or if the police seek telecom records.
• Chargesheet Filing: Within 60-90 days of FIR registration; in bailable cases, chargesheet must be filed within 60 days of arrest.
• Cognizance by Magistrate: 2-4 weeks after chargesheet is filed.
• Framing of Charges: 1-2 months after cognizance.
• Trial: 6 months to 1 year for summary trials; 1-2 years for warrant trials in cheating cases.
• Judgment: 1-2 months after the conclusion of arguments.
• Civil Suit (Order 37 Summary Suit): Notice to defendant — 30 days; if no defence is filed, judgment within 2-3 months. If defence is filed, trial takes 8-12 months.
• Appeal: Supreme Court or High Court — 1-2 years at each level.

How Long Will the Investigation Take?

In a straightforward cheating case where evidence is clear — bank statements and chat logs — the police investigation typically takes 60 to 90 days. If the accused is evading summons or if the police need to obtain call detail records from telecom providers, the process can extend to 4-5 months. The investigating officer must file a chargesheet within 90 days of the accused's arrest, or the accused becomes entitled to default bail under Section 187 BNSS.

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. In fact, most such cases settle out of court because the accused is under pressure from the criminal case. The settlement can be structured as a consent decree in the civil suit — the accused agrees to pay the entire amount plus interest and legal costs, and the complainant withdraws the criminal complaint. The court may or may not permit compounding of the criminal case, but it can consider the settlement as a mitigating factor. You can also approach the Lok Adalat for an amicable resolution, which has the force of a decree. Settlement is advisable when the accused is willing to pay and you want to avoid prolonged litigation.

Common Mistakes People Make

• Delaying action: Waiting too long weakens your case — evidence gets stale, memories fade, and the accused may disappear. Act within a few weeks.
• Not preserving evidence: Deleting WhatsApp chats, SMS, or call logs before taking screenshots is a fatal error. These are your primary evidence.
• Confronting the accused directly: Verbal threats or heated conversations can lead to counter-complaints or harassment claims against you. Channel all communication through legal notices.
• Engaging a lawyer without domain-specific experience: This type of case — overlapping criminal and civil remedies, digital evidence, and summary suits — requires a lawyer who regularly handles fraud and money recovery matters. A general practitioner may miss the procedural hooks like combining an FIR with an Order 37 suit, or may not know how to get the police to trace an accused using a mobile number under Section 178 BNSS.
• Posting on social media: Publicly shaming the accused on social media can backfire — it may be used as evidence of defamation or harassment, and it can prejudice the police investigation.
• Not blocking the credit card: If you continue using the same card without blocking it, the bank may refuse the zero-liability claim because you are technically aware of the transaction.

FAQs People Normally Have

Can I recover money if I only know the person's name and phone number?

Yes. The police can trace the person using call detail records and mobile location data. A legal notice sent to the phone number via registered post can also establish contact and serve as evidence of due diligence.

Is giving OTP considered "authorizing" the transaction?

Legally, yes — OTP is a form of authorization. But if the accused tricked you into giving the OTP under a false promise (e.g., "I'll pay you back immediately"), that is still cheating because the consent was obtained by deception. The distinction matters in court.

What if the accused claims it was a gift or a friendly loan?

That's a common defence. To counter it, you need evidence showing that the transaction was specific (for the purchase of a phone, not a gift) and that you demanded repayment. Chat messages saying "I need the money back" or "You said you'd repay" are crucial.

Can I sue the bank for not reversing the charge?

If you voluntarily shared the OTP, the bank's zero-liability policy typically does not apply. The bank's obligation is limited to security breaches. However, you can approach the Banking Ombudsman if the bank fails to investigate the dispute promptly.

How long do I have to file a case?

For criminal cheating under Section 318 BNS, there is no formal limitation period — the FIR can be filed at any time. For the civil suit for money recovery, the limitation period is 3 years from the date the money became due, under Article 37 of the Limitation Act, 1963.

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.