Legal Advisory: Case Review

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: Selling an item on an online marketplace like OLX or Quikr carries the risk of the buyer filing a false police complaint alleging fraud after the transaction. To stay safe, you must create a clear paper trail — a written sale receipt, high-resolution photos/videos of the transaction, and payment proof — and insist on physically meeting the buyer at a neutral, public location. Without these, civil or criminal proceedings can drag on for months even on an entirely false claim.

One of my clients recently faced this exact situation. He sold a second-hand motorcycle through an online platform in Lucknow to a buyer who paid in cash. Two weeks later, the buyer filed a police complaint claiming the bike was stolen and that my client had cheated him. The police registered an FIR under Section 318(4) of the Bharatiya Nagarik Suraksha Sanhita (BNSS) for cheating and wrongful possession. The client initially tried to explain matters to the local police on his own. That didn't work. He then approached the Chamber of Advocate Sudhir Rao. The case had no signed receipt, no photos of the handover, nothing on paper. The only evidence was a casual WhatsApp chat. Advocate Sudhir Rao and his office argued that the transaction was a genuine sale between two consenting adults. They built the case entirely around the WhatsApp messages, the buyer's own inconsistent statements, and a witness who had seen the exchange. The Magistrate's Court at Lucknow dismissed the complaint after a detailed Section 173 CrPC inquiry. Advocate Sudhir Rao's deep familiarity with the procedural nuances of false-complaint cases under the new criminal laws was central to securing this outcome.

Key Facts of the Case

• The item sold was a used motorcycle; the sale price was ₹85,000 in cash.
• The transaction occurred in the parking lot of a Reliance Smart store in Gomti Nagar, Lucknow, on 12 April 2025.
• No written sale receipt or bill of sale was prepared at the time of handover.
• The buyer filed a police complaint 16 days after the sale, alleging the bike was stolen from him.
• The FIR was registered under Section 318(4) BNSS (cheating) and Section 319(2) BNSS (wrongful possession of stolen property).
• WhatsApp chat history and a neutral eyewitness were the only available evidence at the initial stage.
• The Magistrate dismissed the complaint after a preliminary inquiry under Section 173(3) BNSS, finding no prima facie case.

The Direct Legal Answer

How do I protect myself from a false complaint after selling on an online marketplace?

The single most important step is to create verifiable evidence of the sale. A simple written receipt — even a hand-written one on a scrap of paper — that both you and the buyer sign can be worth more than a dozen WhatsApp chats. Include the item description, sale price, date, and both parties' full names and addresses. Take a clear photograph or video of the buyer with the item and of the cash being counted and handed over. Use a phone that records date and time metadata.

What if I sell high-value items like vehicles or electronics?

For high-value items — cars, two-wheelers, smartphones, laptops — insist on a formal sale deed or a stamped receipt. For vehicles, complete a Form 29 and Form 30 transfer of ownership with the Regional Transport Office (RTO) immediately after the sale. Without it, the vehicle legally remains in your name, and any traffic violation or accident liability will come back to you.

Can the buyer file a criminal case just because there's no receipt?

Yes. A dishonest buyer can file a police complaint alleging fraud, or worse, theft. The police are obliged to register an FIR if the allegations disclose a cognizable offence. A receipt or other documentary evidence is your strongest shield against such a complaint. Without it, the investigation will proceed — and it will be your word against theirs.

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 ignore a police notice or summons. Appearing before the investigating officer without a lawyer's advice is risky — you may inadvertently make statements that are later used against you. Also, keep all digital records — WhatsApp chats, call logs, payment app screenshots — backed up on a cloud service or external drive.

This type of matter — false complaints arising from private sales — involves nuanced procedural strategies under the BNSS. General practitioners may not routinely handle such cases, and that lack of domain-specific experience can delay the process or even weaken your position. Engaging an advocate who regularly deals with commercial and white-collar criminal cases under the new criminal laws often leads to faster and better outcomes.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), 2023, a false complaint of cheating falls under Section 318(4) (Cheating) and Section 319(2) (Dishonestly receiving stolen property). A seller facing such allegations can also be booked under Section 301 BNS (Wrongful restraint) in some cases, though this is less common. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), the relevant provisions for filing a private complaint before a Magistrate and for the inquiry stage are Section 173(3) and Section 175(3). For civil remedies, the Indian Contract Act, 1872 (sections 4, 5, 10) governs the validity of a sale contract, and the Sale of Goods Act, 1930 applies to transactions of movable property.

Punishment and Penalties

If a false complaint leads to a conviction under Section 318(4) BNS, the punishment can extend to imprisonment for a term up to three years, or a fine, or both. Section 319(2) BNS provides for imprisonment up to five years or fine, or both, depending on the value of the property allegedly stolen. Both offences under these sections are cognizable (police can arrest without warrant) and bailable in nature. They are non-compoundable — meaning the parties cannot privately settle the matter and have it struck off by the court.

Jurisdiction — Where to File the Case

For a criminal complaint arising from such a transaction, the case must be filed at the police station having territorial jurisdiction over the place where the alleged offence took place — usually where the sale was physically concluded. For a false counter-complaint, the seller can file a private complaint before the Judicial Magistrate of the First Class at the court having jurisdiction over the same area. In Lucknow, that would typically be the Court of the Chief Judicial Magistrate, Lucknow, or the relevant Metropolitan Magistrate's court. Filing in the wrong jurisdiction can lead to immediate dismissal or delay.

What if Police Refuse to File FIR?

If the police refuse to register an FIR on a false complaint by the buyer, the seller can:

• File a written complaint before the Superintendent of Police (SP) under Section 173(4) BNSS, who can direct the SHO to register the FIR.
• File a private complaint before the Magistrate under Section 175(3) BNSS. The Magistrate will examine the complainant and may either dismiss it or issue process.
• 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 the FIR.

Do not accept refusal passively. A lawful sale is not a crime, and the police must record any complaint that discloses a cognizable offence.

Rights of the Accused

If you are named as an accused in a false complaint, your fundamental rights under the Constitution remain intact:

• Right to silence: Under Article 20(3), no person accused of an offence can be compelled to be a witness against themselves.
• Right to legal representation: Under Article 22(1), you have the right to consult and be defended by a legal practitioner of your choice.
• Right to be produced before a Magistrate within 24 hours: If arrested, you must be produced before the nearest Magistrate within 24 hours of arrest, excluding travel time.
• Right to a copy of the FIR: You are entitled to a free copy of the FIR immediately upon arrest.

Bail Provisions

In a false-complaint case under Section 318(4) BNS, the offence is bailable. This means as a seller-accused, you are entitled to bail as a matter of right upon filing a bail bond and surety. The investigating officer or the court cannot refuse bail arbitrarily. However, if the complaint alleges theft under Section 319(2) BNS, the offence becomes non-bailable, and you would need to apply for regular bail before the Magistrate or Sessions Court. In such a scenario, considering anticipatory bail under Section 482 BNSS before arrest can be a strategic advantage, as it prevents the humiliation of arrest and custody.

Quashing of FIR / Case

If the FIR is based on a false complaint with no prima facie case, you can approach the High Court under Section 528 BNSS (inherent powers) for quashing of the FIR. The classic grounds are that the FIR does not disclose any offence, or that the allegations are an abuse of the process of law. In the context of a genuine sale, quashing can be sought on the ground that the transaction is a lawful contract between consenting adults, and no element of fraud or dishonest intention exists. A successful quashing petition saves months or years of litigation. However, it requires the advocate to present clear documentary evidence of the genuine sale — such as a receipt, photo, or video — to satisfy the court that the complaint is manifestly false.

If You Are the Victim

If you are a genuine seller facing a false complaint, here is your checklist:

• Do not avoid police notices. Appear promptly and present your evidence.
• Collect and preserve every piece of evidence — WhatsApp chats, call records, payment receipts (even partial), photos, videos, and witness details.
• File a counter-complaint with the police or before the Magistrate for filing a false FIR with malicious intent. This can deter the buyer from persisting with the false claim.
• Seek legal advice from an advocate experienced in criminal law at the earliest stage.

Documents You Must Keep Ready

• Identity proof (Aadhaar, PAN, or Voter ID) of both seller and buyer
• Signed receipt of the sale (even a hand-written one)
• Photographs or video of the buyer with the item at the time of handover
• Screenshots of all online marketplace messages and WhatsApp/call logs
• Bank statement or payment app transaction history (if payment was not fully in cash)
• Copy of any police complaint or FIR filed against you
• Any correspondence with the buyer after the sale

What Evidence Is Required?

• Primary evidence: A signed sale receipt or sale deed, which directly proves the transaction.
• Documentary evidence: WhatsApp chats, SMS messages, or emails exchanged between the parties regarding the terms of sale.
• Circumstantial evidence: Photographs or video of the buyer examining and taking possession of the item.
• Witness testimony: An independent third party who saw the exchange can give evidence.
• Corroborative evidence: Bank transfer receipts, UPI records, or ATM slips showing cash withdrawal near the time of the sale.
• Secondary evidence: If the original receipt is lost, a photocopy or certified copy may be permissible.

How the Police Behave in Such Cases

In many false-complaint cases, the police initially take the buyer's version at face value. They may summon you, ask for your side of the story, and in some cases, pressure you to settle or pay compensation to the "victim." This is an informal mediation attempt, not a judicial process. Their attitude shifts once they see documentary evidence of a genuine sale. If your evidence is strong, they are likely to recommend closure of the FIR under Section 173(3) BNSS as false. However, they will not do this without proper legal representation on your side pushing for it.

Timeline of Legal Process

• FIR Registration: Day 1 — immediate upon receipt of the complaint.
• Investigation: 60-90 days — the police examine evidence, record witness statements, and may issue summons.
• Chargesheet Filing: Within 90 days of arrest or the date of FIR registration, failing which the accused is entitled to default bail.
• Cognizance: Within 30-45 days after chargesheet — the Magistrate takes cognizance of the offence.
• Framing of Charges: 2-4 months — the court frames formal charges if a prima facie case exists.
• Arguments on Quashing: 3-6 months — if a quashing petition is filed at the High Court stage.
• Trial and Judgment: 12-18 months — if the case proceeds to trial.
• Appeal: Up to 2 years — to the Sessions Court or High Court, depending on the verdict.

How Long Will the Investigation Take?

The police investigation under BNSS must be completed within 60 days for offences punishable with up to 3 years imprisonment, and within 90 days for more serious offences. In practice, a false-complaint case of this nature takes about 2-3 months for the police to complete the investigation and either file a chargesheet or a closure report.

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?

While the offences under Sections 318(4) and 319(2) BNS are non-compoundable, parties can still explore mediation or Lok Adalat for mutual dispute resolution. However, the court will not simply drop the criminal proceedings because the parties agree; mere withdrawal of complaint by the buyer is not enough to quash the FIR. A compromise can be used as a mitigating factor in plea bargaining or at the time of sentencing if the trial occurs. In practice, the most efficient solution is to have the court itself record the false nature of the complaint and dismiss it, which is possible if your evidence is strong. Settlement should only be considered to avoid further litigation costs, not to buy peace at the cost of accepting guilt.

Common Mistakes People Make

• Skipping the receipt and the photo: The most common and most expensive mistake. Without documentary proof, it's your word against the complainant's.
• Taking cash without witnesses: A neutral witness at the transaction can be decisive in court.
• Posting details on social media: Anything you post on Facebook, Twitter, or Instagram can be used against you by the complainant's lawyer. Stay off social media during the case.
• Engaging a lawyer without domain-specific experience: A general practitioner may not be familiar with the procedural strategies under BNSS or the nuances of false-complaint litigation. This type of matter involves specific evidentiary rules and legal presumptions — a lawyer who regularly handles commercial and white-collar criminal cases under the new criminal laws will have the procedural and strategic edge.
• Ignoring police summons: Failing to appear before the investigating officer can lead to arrest or at least a warrant being issued against you. Always appear with a lawyer's advice.
• Speaking to the complainant without recording it: Even a casual phone call with the buyer can be recorded and used as evidence. Communicate only through recorded means or in the presence of your lawyer.

FAQs People Normally Have

Can I sell a phone or laptop without any receipt at all?

Legally, yes. A contract of sale under the Indian Contract Act does not require a written document. But for your protection, always create a minimal written record — even a note on a piece of paper with both signatures and a date — plus a photograph of the buyer with the item. Without it, you are vulnerable.

What if the buyer says he will pay me later but never does?

That's a civil dispute, not a criminal offence unless there was an intention to cheat from the start. You can send a legal notice and file a recovery suit. But that is a separate matter from the false-complaint scenario.

Can the police arrest me without a warrant in such a case?

If the complaint alleges cheating or fraud under Section 318(4) BNS, the offence is bailable and the police cannot arrest without a warrant unless they consider it necessary for investigation. If the complaint alleges theft under Section 319(2), the offence becomes non-bailable, and arrest without warrant is possible. This is why anticipatory bail under Section 482 BNSS may be advisable in the latter scenario.

Will the court believe my WhatsApp screenshots as evidence?

Yes, but only if they are properly authenticated. Mere screenshots can be challenged as manipulated. You need to present the original phone with the WhatsApp conversation intact, and preferably get a certificate under Section 65B of the Indian Evidence Act (as read with BNSS) from a forensic expert. A lawyer's guidance is essential for this.

How long do I have to file a counter-complaint?

There is no fixed limitation period for filing a complaint of filing a false FIR. However, it should be done promptly — within a few months of discovering the false complaint. Delay weakens your credibility.

This article is general legal information, not legal advice. Consult a qualified advocate about your specific situation.

Advocate Sudhir Rao, Supreme Court of India