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.
Rohan Gupta, a 29-year-old software professional from Gomti Nagar, Lucknow, had been regularly depositing money on an offshore betting platform through UPI. Every single time he deposited, the UPI ID changed, the name on the receiving end was different, and the amounts landed in what appeared to be random personal accounts. He didn't think much of it at first. By around early March 2025, however, he received a notice from the Cyber Crime Branch in Lucknow informing him that one of the UPI accounts he'd transacted with had been flagged as a mule account linked to a larger money laundering network.
Rohan had initially consulted a general civil lawyer who advised him to simply respond to the notice with a written statement. That didn't resolve anything. The inquiry deepened, and he was called for questioning a second time. At that point, a family member referred him to Advocate Sudhir Rao. The approach changed immediately — a thorough review of his transaction history was conducted, his intent and knowledge were clearly established on record, and precise submissions were made to the investigating officer under the applicable provisions of law. Rohan was ultimately not chargesheeted, and the inquiry against him was closed.
If you've been depositing on similar platforms and are now worried about your legal exposure, what follows is essential reading.
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.
Do not make further transactions: Stop all deposits or withdrawals on any such platform immediately. Every additional transaction creates a fresh trail that investigators can use against you. Don't assume small amounts are below scrutiny. They aren't.
Preserve your transaction records: Download and save all UPI transaction screenshots, bank statements, and SMS confirmations. These records establish the sequence of events and your actual intent, both of which matter enormously in an inquiry of this nature. And here's the thing — investigators will pull bank records regardless, so you want your own version ready first.
Engage an advocate with domain-specific experience: Matters involving cyber financial fraud, mule account linkages, and offshore gambling platforms sit at the intersection of criminal law, fintech regulations, and PMLA provisions. A general practitioner may not be familiar with the evidentiary thresholds and procedural strategies specific to this kind of case. Engaging an advocate who regularly handles cybercrime and financial fraud matters makes a material difference to how your case is positioned from the very first stage.
Applicable Sections of Law
This matter is criminal in nature, involving elements of financial fraud, illegal gambling, and potential money laundering through mule accounts. The following provisions are directly applicable:
- Section 318 BNS (Cheating): Gambling platforms that misrepresent their legal status or use deceptive UPI collection mechanisms may attract cheating charges, and users unknowingly facilitating such transactions may face scrutiny.
- Section 111 BNS (Organised Crime): Where rotating UPI accounts are part of a coordinated financial crime network, this provision becomes relevant for those operating or knowingly participating in the network.
- Section 3 and Section 4, Prevention of Money Laundering Act, 2002 (PMLA): Transactions routed through mule accounts constitute proceeds of crime. Depositors whose funds pass through such accounts may face PMLA scrutiny even if their intent was only to gamble.
- Section 67, Information Technology Act, 2000: Operating or materially supporting illegal online platforms carries liability under this provision.
Now, before you assume these sections won't apply to you because you're "just a user" — that's precisely the assumption that gets people into trouble.
Punishment and Penalties
- Section 318 BNS (Cheating): Imprisonment up to three years, or fine, or both. Cognizable, bailable, and non-compoundable.
- Section 111 BNS (Organised Crime): Imprisonment between three years and life imprisonment depending on the gravity of the offence, along with fine. Cognizable and non-bailable.
- PMLA Section 4: Rigorous imprisonment between three and seven years, extendable to ten years in certain cases, along with fine. Cognizable and non-bailable.
- IT Act Section 67: Imprisonment up to three years and fine up to five lakh rupees on first conviction.
Jurisdiction — Where to File the Case
Complaints go to the jurisdictional Cyber Crime Police Station. Where there's no dedicated cyber cell, the territorial police station where you reside or where the transaction originated has jurisdiction. Courts with cognizance depend on the offence — Magistrate Courts handle Section 318 BNS matters, Sessions Courts handle PMLA and Section 111 BNS charges. The Enforcement Directorate (ED) has independent jurisdiction for PMLA offences. Frankly, filing in the wrong forum wastes time and hands the other side a procedural objection they'll happily use against you later.
What if Police Refuse to File FIR?
More common than people expect. Especially where the platform is offshore and the digital trail requires technical expertise to trace. Here's what you can do:
- Approach the Superintendent of Police (SP) in writing under Section 173(4) BNSS with a detailed written complaint and all transaction evidence attached.
- File a private complaint before the jurisdictional Magistrate under Section 175(3) BNSS if the SP's office does not act within a reasonable time.
- File a writ petition before the High Court under Article 226 of the Constitution seeking a direction to register the FIR — this is a well-established remedy affirmed in Lalita Kumari v. Government of Uttar Pradesh, 2014.
- File an online complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in), which generates a reference number and creates an official paper trail.
Rights of the Accused
If you're called for questioning or arrested in connection with a mule account inquiry, these rights protect you:
- Right against self-incrimination: Under Article 20(3) of the Constitution, you cannot be compelled to be a witness against yourself. You are not required to answer questions that may incriminate you.
- Right to legal representation: Under Article 22 of the Constitution, you have the right to consult and be represented by an advocate of your choice from the moment of arrest.
- Right to be produced before a Magistrate: Within 24 hours of arrest, you must be produced before the nearest Magistrate — no exceptions.
- Right to know grounds of arrest: Police must inform you in writing of the specific grounds of arrest.
- Right to a copy of the FIR: You are entitled to a copy of the FIR free of charge as affirmed in Youth Bar Association of India v. Union of India, 2016.
Make no mistake, these aren't just textbook rights. Knowing them — and asserting them at the right moment — can change the direction of an inquiry.
Bail Provisions
Bail depends on the specific charges invoked. Section 318 BNS matters are bailable — you can apply at the police station itself. But if PMLA charges are added, the offence becomes non-bailable and twin conditions under Section 45 PMLA apply: the court must be satisfied that you're not guilty and that you're unlikely to commit an offence while on bail. For non-bailable offences, regular bail is applied under Section 480 or Section 483 BNSS before the Sessions Court. Anticipatory bail under Section 482 BNSS should be applied for proactively if you have reasonable apprehension of arrest. Waiting until after arrest significantly weakens your position, and that's a mistake I've seen people repeat far too often. Bail conditions typically include surrender of passport, periodic reporting to the investigating officer, and restrictions on leaving the city.
Quashing of FIR / Case
Where an FIR has been registered but the facts on record don't disclose a cognizable offence, or where it's evident that the depositor had no knowledge of the mule account nature of the UPI IDs, quashing under Section 528 BNSS before the High Court is a legitimate and often effective strategy. The Supreme Court in State of Haryana v. Bhajan Lal, 1992 laid down the categories where quashing is appropriate — these include cases where there's no prima facie evidence linking the accused to the alleged crime and cases where continuation of the proceeding amounts to abuse of process of court. This remedy requires careful legal drafting. Pursue it early, before charges are formally framed.
If You Are the Victim
Many depositors are, in fact, victims — deceived by platforms that concealed their illegal nature. If that describes your situation:
- File a complaint with the Cyber Crime Cell in your city, attaching all UPI transaction records, platform screenshots, and communication history.
- Report the UPI IDs to your bank immediately and request a transaction freeze inquiry — banks are obligated under RBI guidelines to investigate reported fraudulent transactions.
- File a complaint on cybercrime.gov.in with your reference number and follow up actively — passive complaints often go cold.
- Inform the Enforcement Directorate's zonal office if your deposited amount was substantial, especially if you suspect it was routed through a money laundering network.
- Do not speak to the platform's representatives or respond to any communication from them without consulting your advocate first.
Documents You Must Keep Ready
- Aadhaar card and PAN card (identity verification for all proceedings)
- Bank account statements covering the period of all deposits
- UPI transaction screenshots and SMS confirmations
- Screenshots of the gambling platform's interface, including deposit screens showing the UPI IDs used
- Any email or chat communication with the platform or its representatives
- Details of the device (mobile or laptop) used for transactions
- Records of any notices or summons received from police or ED
- Written responses or submissions already made to any authority
What Evidence Is Required?
- Primary digital evidence: UPI transaction receipts, bank account statements showing debit entries, and platform-generated payment confirmations are primary evidence under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023.
- Secondary digital evidence: Screenshots of the betting platform, chat records, and email correspondence — these must be supported by a certificate under Section 63(4) BSA to be admissible.
- Device forensic data: The specific device used for transactions may be seized and forensically examined by the cyber cell.
- Bank records: Formally requisitioned bank records showing the flow of funds from your account to the mule accounts are critical for both prosecution and defence.
- KYC data of mule accounts: Investigating authorities can trace the registered names against the UPI IDs to establish the mule account network.
- Expert witness testimony: A certified cyber forensic expert may be required to explain the technical mechanism of rotating UPI IDs to the court.
How the Police Behave in Such Cases
Cyber cells in larger cities like Lucknow, Pune, and Ahmedabad have dedicated financial fraud wings that take mule account complaints seriously. But here's what actually happens in practice — police often focus first on the most traceable party, which is frequently the depositor whose bank records are easily accessible. Don't be surprised if the initial approach from investigators feels adversarial even when you're a victim. Police may issue Section 179 BNSS notices requiring your presence and written statements. Delays are common because tracing offshore platforms requires coordination with financial intelligence units and sometimes international agencies. Having legal representation from the inquiry stage, not just after an FIR, is critical.
Timeline of Legal Process
- Filing complaint / FIR: Day one to two weeks depending on police response
- Initial investigation and notices: Two to eight weeks — statement recording, bank record requisition, device examination
- Chargesheet filing: Within 60 days for non-bailable offences (Section 187 BNSS) or 90 days in certain cases
- Cognizance by court: Two to four weeks after chargesheet submission
- Framing of charges: One to three months after cognizance
- Trial (evidence and arguments): Six months to two years depending on complexity and number of witnesses
- Judgment: Typically follows shortly after final arguments
- Appeal (if required): Sessions Court or High Court — additional six months to several years
How Long Will the Investigation Take?
In standard cybercrime cases involving UPI fraud and mule accounts, the initial investigation phase runs between 60 and 90 days. PMLA investigations by the Enforcement Directorate can stretch to six months or longer, given the complexity of tracing cross-border fund flows. The chargesheet must be filed within the statutory period under Section 187 BNSS. And here's something your advocate should be watching closely — delay in chargesheet filing can be grounds for default bail. That's a window worth knowing about, and worth monitoring.
Advocate Sudhir Rao, Supreme Court of India