RTO Agent Refused Refund for Driving License Service — Legal Options Explained

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: An agent who takes money for a service and fails to deliver — while lying about it — can be held liable for cheating and breach of contract. You can file a police complaint for cheating under the BNS, approach the consumer forum for a refund with compensation, or take a pragmatic route like negotiating a partial refund while cutting your losses. The agent’s dare to go to the police doesn’t mean you can’t — it might actually strengthen your case.

Meet Rohan Gupta, a 24-year-old software engineer from Indore. In December 2025, he paid ₹3,000 to a local agent named Prakash Sharma — a man known around the RTO office for “getting paperwork done.” Prakash promised to secure a permanent driving license after issuing a learner’s license for LMV and MCWG.

Prakash did issue the learner’s license. But from January 2026 onward, he started making excuses — the RTO had gone strict, AI cameras were assessing tests, the “situation wasn’t good.” Months passed. Rohan kept calling. Prakash kept promising.

By June 2026, the learner’s license was about to expire. Rohan begged him to book a slot. Prakash said he would — but didn’t. On 10 June 2026, the license expired.

The next day, Rohan asked Prakash to either renew or apply for a fresh one. Prakash claimed he applied. But when Rohan asked for the OTP — which had come the first time — nothing. “Servers are down,” Prakash said.

Rohan applied for a new MCWG learner’s license himself. That’s when he discovered the truth: Prakash had never applied. He had lied.

On 28 June, Rohan demanded his money back. Prakash said he’d return it after his salary on 10 July. That date came and went. Then it was “next Monday.” Then another Monday. And then, on one call, Prakash offered just ₹1,500 — half the amount. When Rohan insisted on a full refund and mentioned the police, Prakash shot back: “Don’t give me warnings. Go to the police station and file an FIR — tell them Uncle isn’t giving the money.”

Rohan approached the Chamber of Advocate Sudhir Rao after his own efforts got him nowhere. The agent’s defiance was clear — he thought no one would act. But the approach here was strategic. Advocate Sudhir Rao’s expertise in handling fraudulent service agreements and RTO-related cheating cases helped secure a favourable outcome through a consumer complaint and a parallel police complaint under the BNS. The agent was forced to refund the full amount plus compensation for the harassment and wasted time.

Key Facts of the Case

• Rohan Gupta paid ₹3,000 to agent Prakash Sharma in December 2025 for a driving license (LMV and MCWG).
• Prakash issued only a learner’s license, which expired on 10 June 2026 without a driving test slot being booked.
• Prakash repeatedly lied about reapplying for a new learner’s license — Rohan discovered the lie when he applied himself.
• Prakash initially promised a full refund by 10 July 2026, then gave repeated excuses and finally offered only ₹1,500.
• Prakash dared Rohan to file an FIR, believing no action would be taken.
• Both a consumer complaint and a criminal complaint for cheating were filed under applicable laws.
• The agent was ordered to refund the full ₹3,000 plus compensation for mental harassment and wasted time.

The Direct Legal Answer

Can I get my money back from the agent?

Yes. The agent took money for a service he failed to deliver — that’s a clear breach of contract. You can approach the District Consumer Disputes Redressal Forum (Consumer Court) for a refund with compensation. The agent’s repeated lies and broken promises also amount to cheating under the BNS.

Can I file a police complaint even though I initially approached him for a service?

Absolutely. The fact that you approached him for a legitimate service (getting a driving license) doesn’t mean he can pocket your money and do nothing. Cheating is defined under Section 318 of the BNS — dishonestly inducing a person to deliver property. That’s exactly what happened here. The police can register an FIR.

But what if the police say it’s a “civil matter”?

This is a common hurdle. Police often try to shunt fraud cases as civil disputes. But here, there’s a clear criminal element — the agent lied, made false promises, and retained money dishonestly. Insist on an FIR. If the police refuse, approach the Superintendent of Police under Section 173(4) BNSS or file a private complaint before a Magistrate under Section 175(3) BNSS.

Should I take the ₹1,500 he’s offering?

That’s a practical call. If you want a quick end and don’t have the time or energy for a legal fight, ₹1,500 is better than nothing. But know that accepting a partial refund doesn’t bar you from pursuing the rest legally — unless you sign a full and final settlement. If you do take it, record the conversation and get it in writing that it’s only a partial payment.

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 from day one. WhatsApp chats, call recordings, payment receipts, learner’s license details, and any communication where he admitted the delay or offered a refund. Screenshot everything.

Third — don’t engage in prolonged WhatsApp or phone arguments. Once you have the evidence, act. Send a formal legal notice demanding a refund within 7 days. That notice itself often pressures the agent into settling.

This type of matter involves nuanced procedural strategy — filing the right complaint in the right forum, knowing when to push a criminal case versus a consumer case, and how to handle the police when they resist registration. A general practitioner may not be familiar with the specific RTO-related fraud patterns and the evidentiary requirements. An advocate who regularly handles such matters can navigate these nuances effectively.

Applicable Sections of Law

• Section 318 BNS (Cheating): Whoever, by deceiving any person, fraudulently or dishonestly induces that person to deliver any property, is punishable with imprisonment up to 7 years and fine. This applies directly — the agent deceived Rohan into paying ₹3,000 for a service he never intended to complete.
• Section 319 BNS (Cheating with knowledge that wrongful loss may ensue): A heavier provision where the cheating causes or is likely to cause damage or harm. Applicable if the agent’s actions caused Rohan to lose the learner’s license period and waste months.
• Section 73 of the Indian Contract Act, 1872: For breach of contract — the agent failed to perform the promised service, and the client is entitled to compensation for the loss directly arising from that breach.
• Consumer Protection Act, 2019: The agent provided a service for a fee. Failure to deliver amounts to deficiency in service and unfair trade practice. The District Consumer Forum can award a refund with compensation and litigation costs.

Punishment and Penalties

• Section 318 BNS: Imprisonment up to 7 years, plus fine. Cognizable and non-bailable.
• Section 319 BNS: Imprisonment up to 7 years, plus fine. Cognizable and non-bailable.
• Compoundable: Yes — with the permission of the court, since cheating is compoundable when the amount involved is not too high and the parties agree to settle.
• Nature: Cognizable means police can arrest without a warrant. Non-bailable means bail is at the court’s discretion — not automatic.

Jurisdiction — Where to File the Case

• Criminal complaint: File an FIR at the police station having territorial jurisdiction where the agent operates (typically the area of the RTO office) or where the transaction took place.
• Consumer complaint: File at the District Consumer Disputes Redressal Forum in the district where the agent’s office is located or where you reside. Pecuniary jurisdiction for District Forum is up to ₹1 crore.
• Why jurisdiction matters: Filing in the wrong court can delay your case by months. The court must have both territorial and pecuniary jurisdiction to hear the matter.

What if Police Refuse to File FIR?

Police reluctance is common in such cases — they often dismiss it as a civil matter. Here’s your legal route:

• Approach the SP: Under Section 173(4) BNSS, if a police officer refuses to register an FIR, you can approach the Superintendent of Police in writing. The SP must either investigate or direct registration.
• Private complaint: Under Section 175(3) BNSS, you can directly file a private criminal complaint before the Judicial Magistrate First Class. The Magistrate can order the police to investigate.
• Writ jurisdiction: As a last resort, file a writ petition in the High Court under Article 226 for a direction to the police to register the FIR.
• Key point: Do not threaten the police or get into an argument. Simply present your evidence and insist on your legal rights — calmly and firmly.

Rights of the Accused

Even in cases like this, the accused agent has legal rights. These are important to understand so your case is not vulnerable to procedural challenge:

• Right to silence: Article 20(3) of the Constitution — the agent cannot be compelled to be a witness against himself.
• Right to legal representation: Article 22 — the agent has the right to consult and be defended by a lawyer.
• Right to be produced before a Magistrate within 24 hours: Section 58 BNSS — if arrested, he must be produced within 24 hours, excluding travel time.
• Right to copy of FIR: Section 173(1) BNSS — the accused is entitled to a copy of the FIR and any documents relied on.
• Right to know grounds of arrest: Section 52 BNSS — the arrested person must be informed of the grounds of arrest immediately.

Bail Provisions

• Bailable or non-bailable: Cheating under Section 318 BNS is non-bailable — bail is not automatic and is at the court’s discretion.
• Anticipatory bail: Under Section 482 BNSS, the agent can apply for anticipatory bail if he fears arrest. The court may grant it on conditions like joining investigation or furnishing a bond.
• Regular bail: Under Section 483 BNSS, if arrested, the agent can apply for regular bail. The court considers factors like flight risk, evidence tampering, and the severity of the offence.
• Strategy: In consumer complaints, there’s no arrest. So often the better strategy is to pursue both — a consumer case for quick monetary relief and a criminal case as a pressure tactic.

Quashing of FIR / Case

The agent might try to get the FIR quashed through the High Court under Section 528 BNSS. But that’s not easy here:

• Grounds for quashing: The High Court can quash if the FIR discloses no prima facie offence, if it’s an abuse of process, or if the matter is purely civil and the parties have settled.
• Your advantage: Here, the FIR clearly discloses a prima facie case of cheating — the agent took money, delivered nothing, and lied. Quashing is unlikely.
• Viable strategy for you: If the agent offers a full refund plus compensation and you wish to settle, you can consent to quashing the FIR after settlement. This gives you leverage.

If You Are the Victim

• Act fast: Don’t wait months like Rohan did. The moment you realise the agent is lying, gather evidence and take legal action.
• Send a legal notice: A formal notice from an advocate often resolves the matter without court — the agent realises you mean business.
• File consumer complaint: This is the fastest route for a refund with compensation. The process is simpler and faster than criminal courts.
• Consider criminal action: If the agent is defiant, file an FIR. The threat of arrest often forces a settlement.
• Don’t accept empty promises: Verbal promises of “next Monday” are worthless. Get everything in writing or recording.

Documents You Must Keep Ready

• Identity proof: Aadhaar card, PAN card, voter ID
• Payment proof: Bank transfer receipt, UPI screenshot, or cash receipt (if any) — try to get the UPI transaction ID
• Communication records: WhatsApp chats, SMS, call recordings (if legally obtained — inform the other party if recording is ongoing in some states)
• Learner’s license copy: Both the one issued by the agent and the one you applied for yourself
• Any written agreement or even a simple note from the agent acknowledging receipt of money
• Proof of the agent’s identity: If known, his Aadhaar or address proof
• Screenshots of his social media or references from the classmate who introduced you

What Evidence Is Required?

• Primary evidence: The payment transaction record is crucial — it proves you gave him money. The learner’s license copy shows partial delivery.
• Secondary evidence: WhatsApp chats where he promised to book the slot, then made excuses, then promised a refund, then offered only ₹1,500. These prove dishonesty.
• Call recordings: If you recorded calls where he admitted the delay or refused refund, they are admissible as secondary evidence under the Indian Evidence Act, 1872 (now BSA, 2023) — provided you were a party to the conversation.
• Witness testimony: The classmate who introduced you can be a witness to the fact that the agent offered this service.
• Contemporaneous correspondence: Any email or formal letter you sent demanding a refund.
• Expert note: For a criminal case, the prosecution must prove dishonest intention from the beginning. The pattern of lies and the final offer of half the amount strongly suggest that.

How the Police Behave in Such Cases

Police in RTO-related cases are often familiar with these “dalals” — the agents who operate around RTO offices. Some police officers may try to dismiss your complaint as a civil dispute or say “you should have gone through proper channels.” Don’t be discouraged. Insist on registration of your FIR under Section 318 BNS. The police may also try to mediate and ask the agent to refund the money — if that happens, accept it but get it in writing that the matter is closed. If the agent still refuses after police intervention, the police will have to investigate.

Timeline of Legal Process

• Police complaint (FIR): Immediate — the police must register an FIR for a cognizable offence. Investigation takes 30-90 days ideally.
• Criminal trial (if chargesheet filed): 6 months to 2 years for trial before the Magistrate. BNS cases are meant to be disposed of within 2 years from cognizance.
• Consumer complaint: Notice to the agent (30 days), hearing, evidence — total of 3-6 months for refund order. Appeal takes another 6-12 months.
• Legal notice: 7-15 days for the agent to respond — often leads to settlement before court.
• Realistic best case: Through a combination of legal notice and consumer complaint, expect resolution in 2-4 months if the agent is reasonable. Through criminal action alone, 6-12 months.

How Long Will the Investigation Take?

For cheating cases, the police investigation can take 2 to 6 months. The officer will collect evidence, record your statement, question the agent, and file a chargesheet. If the police refuse to investigate properly, you can file a private complaint before the Magistrate, who can take cognizance directly or order further investigation.

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 — and it often is. Cheating under Section 318 BNS is compoundable with the court’s permission, meaning the parties can settle and the case can be closed. You can also approach a Lok Adalat for a negotiated settlement. In consumer cases, a compromise deed can be filed before the Forum. Settlement is advisable when the agent genuinely offers a full refund with reasonable compensation — avoid the uncertainty of litigation. But if the agent offers only half and continues to lie, settlement may not be fair. The leverage of a criminal case often brings the agent to the table quickly.

Common Mistakes People Make

• Waiting too long: The longer you wait, the harder it is to prove the agent’s dishonesty at the start. Act within days of realising the fraud.
• Verbal agreements: Never pay an RTO agent without a receipt or written acknowledgment. A simple note on paper or a WhatsApp message confirming the amount and service is enough.
• Not preserving digital evidence: People delete WhatsApp chats thinking they’re not important. Chat logs are admissible evidence — preserve them.
• Confronting the agent without counsel: He might record you and use it against you, or you might say something that weakens your case. Let your lawyer handle communication.
• Engaging a lawyer without domain experience: An advocate who doesn’t regularly handle RTO fraud or consumer cases may not know the specific procedures, the right forum, or how to push the police to register an FIR. Domain-specific experience — in consumer law, criminal fraud, and RTO-related litigation — makes a significant difference in procedural strategy, evidence handling, and the speed of the outcome.
• Posting on social media: Avoid public shaming posts — they can be used as evidence against you in a defamation counter-case. Focus on legal remedies.

FAQs People Normally Have

Is the agent’s dare to file an FIR meaningful?

It’s a bluff. Agents say this because they know many people give up. But if you actually file an FIR, the police have to investigate. The agent’s own defiance becomes evidence of his dishonest intention.

Can I use the classmate who introduced me as a witness?

Yes — the classmate can confirm that the agent offered the service and took the money. But the classmate may be reluctant, especially since it’s his father. You can still use him as a witness in court, but consider whether it’s worth straining that relationship.

What if the agent has no assets or is a “small player”?

That makes recovery harder. But a consumer complaint or criminal case can still result in an order against him. If he has no money, even a court order may not bring a refund. In such cases, taking the ₹1,500 and moving on might be practical.

Can I apply for a driving license myself going forward?

Yes. You’ve already done that for the MCWG. For LMV, apply online through the Parivahan website, book a slot, and take the test yourself. The process is straightforward — no agent needed.

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

Advocate Sudhir Rao, Supreme Court of India