If you are stuck in such a situation, here is what to do.
Mr. Sameer Khanna, a software engineer from the city of Anandpur, was going through his bank notifications when he noticed a credit of ₹8,500 via a UPI app. The transaction was from an unknown individual named 'Rajat Sharma'. Confused and cautious, Mr. Khanna worried that this could be a genuine mistake or a sophisticated scam. He had heard of scams where fraudsters send money, ask for it back, and then initiate a chargeback on the original transaction, causing the recipient to lose their own money. Unsure of the correct and safe procedure to return the funds without exposing himself to financial risk, he sought to understand the proper legal and banking channels to address the situation.
Advice in such cases
If you receive money from an unknown source, it is crucial to act cautiously. Here are some steps to follow:
- Do not panic or act hastily. Avoid immediately transferring the money back to the sender using their phone number or UPI ID.
- Verify the transaction by checking your official bank statement, not just the UPI app notification.
- Do not engage in lengthy conversations or share personal or financial information if the sender contacts you.
- Inform your bank immediately about the erroneous credit. Provide them with the transaction details and state that you did not authorize or expect this payment.
- The safest method is to ask the sender to contact their own bank and file a formal request for a transaction reversal. Your bank will then act on the official request from the sender's bank to debit the amount from your account.
- 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 of 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.
Applicable Sections of Law
While receiving money by mistake is not a crime, how you handle it has legal implications. The relevant laws under the new legal framework include:
- Section 314 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section deals with the criminal misappropriation of property. If you knowingly keep and use money that has been mistakenly credited to your account, you could be held liable under this section.
- Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section pertains to cheating. Many UPI scams are designed to cheat individuals. By following the proper procedure, you protect yourself from becoming a victim of or being implicated in such an act.
- Information Technology Act, 2000: Since the transaction is electronic, provisions of the IT Act related to online fraud and unauthorized access can also become relevant, especially if the transaction is part of a larger scam.
If you are the complainant
If you have mistakenly sent money to the wrong person, you are the complainant. Here is what you should do:
- Immediately inform your bank about the incorrect transaction. Provide the date, time, amount, and the transaction reference number.
- File a formal complaint with your bank to initiate a reversal process. The bank will contact the beneficiary's bank.
- You can also try to contact the recipient politely and request them to return the money, but the official channel through the bank is more secure.
- If the recipient refuses to return the money after the bank's intervention, you can file a police complaint for criminal misappropriation of funds.
- 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 of 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.
If you are the victim
In this scenario, the person who received the money is the potential victim of a scam. Here is how to protect yourself:
- Do not transfer any money back from your own account. Insist that the sender must go through their bank for a reversal. This creates an official paper trail.
- Immediately notify your bank of the unsolicited credit and place the amount on hold, authorizing them to reverse it upon receiving a formal request from the sender's bank.
- If the sender harasses, threatens, or pressures you to send the money back immediately, it is a major red flag. Block their number and report it.
- File a precautionary complaint with the National Cyber Crime Reporting Portal (cybercrime.gov.in) or your local police station, explaining the situation to create an official record.
- 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 of 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.
How the police behave in such cases
The police are aware of such financial mistakes and scams. Initially, they will likely guide you to resolve the issue through the banking channels as it is primarily a civil matter unless a crime is evident. However, if there are elements of fraud, cheating, harassment, or refusal to return funds, they will register a complaint. The Cyber Crime Cell is typically the nodal agency for investigating such online financial frauds. They will trace the digital footprint of the transaction and may summon both parties to record their statements as part of the investigation under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.
FAQs people normally have
What evidence is required?
To support your case, whether you are the sender or receiver, you should keep the following evidence:
- A clear screenshot of the transaction confirmation showing the date, time, amount, and transaction ID.
- Your bank account statement highlighting the debit or credit entry.
- Copies of all communication with your bank and the other party (if any), such as emails, chat messages, or call records.
- A copy of any police or cyber cell complaint filed.
How long will the investigation take?
The timeline for resolution varies. If handled purely through banking channels, a reversal can take anywhere from 7 to 15 business days, depending on the coordination between the two banks. If a police complaint is filed and a formal investigation is launched, the process can take several months. The duration depends on factors like the complexity of the case, inter-state jurisdictions, and the responsiveness of the involved parties and financial institutions.
Advocate Sudhir Rao, Supreme Court of India