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 you paid for a product online and the seller demands extra money for GST or customs fees after payment, you are almost certainly being scammed. Stop all communication, immediately file a cybercrime complaint, and do not pay any additional amount. The tax department never contacts buyers individually for payment releases.
A 15-year-old from Jaipur, Arjun Mehta, found a deal too good to pass up. He purchased a PS5 from an online shop for Rs. 30,000, paid via UPI, and received a professional-looking invoice. The seller had a GSTIN, a social media presence, and even shared what appeared to be a legitimate Aadhaar card.
But after payment, the seller refused to share a tracking number. Days later, he claimed a "GST issue" had blocked the shipment and demanded an extra Rs. 5,400. Arjun's mother got involved, and the seller promised a refund. He kept stalling for 48 hours, then stopped answering calls entirely.
Frustrated and terrified of losing his savings, Arjun approached his family's advocate, who then brought the matter to the Chamber of Advocate Sudhir Rao. It was clear — the "shop" didn't exist at its claimed address. A cybercrime complaint was drafted immediately. Advocate Sudhir Rao's office traced the UPI transaction to a bank account opened with fake documents in Nagpur. The police froze the account within 72 hours. The expertise in online fraud matters ensured the complaint was tagged correctly, the evidence preserved, and the fraudster's trail followed fast.
Here's the thing: within a week, the bank reversed the UPI payment under the chargeback mechanism. The seller never contacted them again. The scam was textbook — fake identity, fake tracking stories, and a fake GST scare.
Key Facts of the Case
- The buyer was a 15-year-old minor who paid Rs. 30,000 via UPI for a PS5.
- Post-payment, the seller refused to provide any tracking number or delivery proof.
- The seller then demanded an additional Rs. 5,400 citing a fake "GST release" issue.
- Multiple family members contacted the seller, who promised a refund but never delivered.
- No product was ever dispatched — no courier receipt, no AWB number, no GST notice existed.
- UPI payment records, WhatsApp chats, voice notes, and the seller's Aadhaar/PAN were preserved as evidence.
- The police complaint resulted in the fraudulent account being frozen within 72 hours.
The Direct Legal Answer
Was this a scam?
Yes. This is a classic online marketplace scam. Real sales never demand extra GST after full payment. Tax issues are settled between the seller and the government, never with the buyer.
Can the money be recovered?
Yes, UPI payments can be reversed. But speed matters. If you delay, the scammer will withdraw everything. The longer you wait, the harder it gets.
Should I pay the extra Rs. 5,400?
Do not. Paying will only confirm that you are a viable target. The scammer will invent another fee — "customs clearance", "insurance", "handling charges" — and you'll lose more.
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.
File a cybercrime complaint immediately — do not wait for the seller's next message. Also, contact your bank's UPI support and request a chargeback on the transaction. Preserve all evidence: screenshots, chat logs, call recordings, and payment receipts. Do not delete any of it. This type of online fraud requires a lawyer who understands digital evidence preservation, bank chargeback timelines, and the correct police jurisdiction to file the FIR.
Applicable Sections of Law
This is a criminal case of cheating and fraud. Under the Bharatiya Nyaya Sanhita (BNS) 2023, the relevant sections include:
- Section 318 BNS — Cheating. Punishable with imprisonment up to 3 years, fine, or both.
- Section 319 BNS — Cheating by personation (using fake identity or Aadhaar). Punishable with imprisonment up to 7 years, and fine.
- Section 316 BNS — Criminal breach of trust. If the seller collected money with no intention to deliver, it's criminal misappropriation.
- Information Technology Act, 2000 — Sections 66D (cheating by personation using computer resource) and 67 (fraudulent electronic communication) may also apply.
Punishment and Penalties
Under Section 319 BNS, the punishment for cheating by personation can extend to 7 years of imprisonment along with a fine. Under Section 318 BNS, imprisonment may go up to 3 years. These offences are generally cognizable (police can arrest without warrant), bailable, and non-compoundable. However, courts may treat online fraud differently based on the amount involved and the use of forged documents. Fines vary from a few thousand rupees to several lakhs depending on the loss caused.
Jurisdiction — Where to File the Case
For cybercrime, the FIR should be filed at the police station having jurisdiction over the place where the fraud occurred. In this case, jurisdiction could be Jaipur (where Arjun made the payment), Nagpur (where the bank account was located), or even the seller's claimed address. Under the BNSS, online fraud can be investigated by the police station where the victim resides. Alternatively, you can file a complaint on the national cybercrime portal (cybercrime.gov.in) which forwards it to the correct jurisdiction.
What if Police Refuse to File FIR?
If the local police refuse to register the FIR, you have several options:
- Approach the Superintendent of Police (SP) under Section 173(4) BNSS to direct the station to register the FIR.
- File a private complaint directly before a Judicial Magistrate under Section 175(3) BNSS.
- Write to the cybercrime cell's supervisory officer in your district.
- As a last resort, file a writ petition in the High Court under Article 226 of the Constitution.
Rights of the Accused
In a criminal case, the accused also has fundamental rights:
- Right to remain silent under Article 20(3) — they cannot be forced to confess.
- Right to be produced before a Magistrate within 24 hours of arrest under Article 22.
- Right to legal representation of their choice.
- Right to a copy of the FIR and to know the grounds of arrest.
- Right to apply for bail.
Bail Provisions
Under the BNSS, this type of offence is generally bailable. But here's the twist: if the fraud amount is high or multiple victims exist, courts may treat it more seriously. Anticipatory bail under Section 482 BNSS is available for the accused if they fear arrest. Regular bail under Section 480 or 483 BNSS can be applied for after arrest. Since the case is bailable, the police must grant bail if the accused appears. However, with a fake Aadhaar card, the accused may face stricter bail conditions.
Quashing of FIR / Case
The accused can approach the High Court under Section 528 BNSS to quash the FIR. Quashing is granted if the FIR does not disclose a prima facie offence, if the matter is purely civil in nature, or if the parties have compromised (only in compoundable cases). But in clear cheating cases with digital evidence like UPI receipts and fake GST stories, quashing is rarely granted. The High Court will not step in to protect a fraudster.
If You Are the Victim
- Do not pay any extra money. The moment you pay more, the scam continues.
- Immediately file a cybercrime complaint on the government portal (cybercrime.gov.in). Include all UPI transaction IDs, chat screenshots, and the seller's phone number.
- Contact your bank's UPI team and request a chargeback under the RBI's dispute resolution mechanism.
- Preserve every piece of communication — do not delete chats, voice notes, or call logs.
- Alert your family members so no one else shares OTPs or bank details with the same scammer.
Documents You Must Keep Ready
- UPI transaction receipt / bank statement showing payment of Rs. 30,000
- Invoice or GSTIN document provided by the seller (even if fake)
- WhatsApp chats and screenshots of all conversations
- Voice notes and call recordings from the seller
- Seller's phone number, Aadhaar card, and PAN card provided
- Any communication from the seller about refunds or GST demands
- Proof of the seller's social media presence (if available)
- Your own identity proof (Aadhaar, PAN) for filing the complaint
What Evidence Is Required?
- Primary evidence: UPI payment confirmation, bank statement showing the debit, and the invoice.
- Secondary evidence: WhatsApp chats, voice notes, screenshots — these are admissible under the Indian Evidence Act as electronic records.
- Corroborative evidence: Call logs, the seller's refusal to give a tracking number, and his contradictory statements about GST.
- Witness testimony: Your mother's version of the conversation with the seller.
- Expert evidence: If the GSTIN is fake, a tax consultant's report can be used to prove the GST story was fabricated.
How the Police Behave in Such Cases
Make no mistake — police are overworked and may initially dismiss a Rs. 30,000 online payment as a "small case". They might ask you to approach the cyber cell separately. But once you have a lawyer, things change. A properly drafted complaint with digital evidence attached speeds up the process. Police will usually trace the UPI account, freeze it if the funds are still there, and summon the account holder. The key is to act within the first 24-48 hours. After that, the money may be moved to another account or withdrawn at an ATM.
Timeline of Legal Process
- Day 1-2: File the cybercrime complaint online or at the local police station.
- Day 3-7: Police investigate, trace the UPI account, and freeze it if funds remain.
- Week 2-4: Bank processes the chargeback request under RBI guidelines. If approved, money is returned to your account.
- Month 1-3: Police file a chargesheet or at least register an FIR. The accused may be summoned or arrested.
- Month 3-12: Trial before the Magistrate. If the accused is caught and admits guilt, the matter may be concluded faster.
- Appeal: Either party can appeal to the Sessions Court within 30 days of the judgment.
How Long Will the Investigation Take?
Police are required to complete the investigation within 90 days for offences punishable with up to 7 years imprisonment. In online fraud cases, the actual timeline depends on how quickly the UPI transaction trail is traced. If the accused's bank account is frozen, the police may file a chargesheet within 45-60 days. But if the scammer used a mule account with fake KYC, the investigation may take longer — sometimes up to 3-4 months.
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, but only if the accused returns the money voluntarily. In criminal cases, cheating under Section 318 BNS is generally non-compoundable, meaning the case cannot simply be withdrawn by the victim after a compromise. However, courts may take a lenient view if the money is returned and the victim's loss is fully compensated. In practice, many such matters are resolved through the bank's chargeback mechanism without needing a full trial. Mediation and Lok Adalat are also available options for civil aspects (like refund claims). But for criminal fraud, the process remains active even after a settlement.
Common Mistakes People Make
- Paying the extra amount: Giving in to the GST demand confirms you are an easy target. You'll be milked for more.
- Deleting evidence: Scared teenagers often delete chats out of shame. Don't. That's your best proof.
- Waiting too long: Every hour after the scam gives the fraudster time to withdraw or transfer the money. Act immediately.
- Engaging a lawyer without domain experience: Not all lawyers handle cybercrime efficiently. This area requires specific knowledge of UPI chargeback procedures, digital evidence handling, and the correct police jurisdiction for filing FIRs. A general practitioner may not know how to preserve electronic records or how to approach the bank for a chargeback, leading to delays and weaker cases.
- Sharing bank account details after the scam: The scammer now has your account number. Monitor it for suspicious deposits. If a small amount appears from an unknown source, inform your bank immediately — it could be part of a money laundering scheme.
- Confronting the scammer directly: Don't threaten or argue. You may inadvertently reveal your strategy or scare him into destroying evidence.
FAQs People Normally Have
Is a GST demand after payment a real thing?
No. GST is collected upfront at the time of sale and shown on the invoice. Demanding additional GST after payment is a known scam tactic.
Can a 15-year-old file a police complaint?
Yes. A minor can lodge an FIR. The police will record the complaint with the help of a parent or guardian in writing.
What if the scammer sends money to my account and files a complaint against me?
This is a common counter-attack. If you see any suspicious credit, immediately inform your bank and the cybercrime cell. Do not use the money. Keep it untouched until the investigation clears you.
How long does a UPI chargeback take?
Under RBI rules, banks must process chargeback requests within 7-10 working days. However, if the scammer has already withdrawn the money, recovery through the bank becomes less certain.
Should I trust a seller who shares Aadhaar and PAN cards?
No. Scammers often use stolen or fake documents. Aadhaar and PAN cards are for identity verification, not a guarantee of honest business. Always verify the seller through independent means.
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 advocate 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.