Stolen Security Deposit by Co-Tenant: How to Recover Your Money and Deal With Threats

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.

Three women were sharing a 3BHK flat in Gomti Nagar, Lucknow. When the tenancy ended in late March 2025, the landlord handed over the full settlement amount of Rs. 13,500 to one co-tenant, Pooja Srivastava, on behalf of all three. The landlord had deducted a portion from Pooja's share because she had given only a half-month notice, while the other two co-tenants, Meena Bajpai and Ritu Chandra, had sent notice to both Pooja and the landlord nearly six weeks in advance — screenshots confirmed this. The total deposit had been Rs. 9,000 per person.

Pooja collected the entire Rs. 13,500 and went silent for over a week. When Meena and Ritu followed up, she returned only Rs. 5,000 combined — roughly Rs. 2,500 each — without any explanation. She then blocked both of them, along with the landlord, on every platform. The landlord separately confirmed, in writing, that Ritu was owed an additional Rs. 4,000. Despite all attempts to reach Pooja's family, they too had blocked all contact.

Things got worse from there. Pooja sent a threatening message stating she would come to their new residence and they would "see the consequences," naming their new address specifically. She also claimed they owed her money for household utensils — but a prior message from her, on record, stated she was not taking any utensils with her. Meena and Ritu approached Advocate Sudhir Rao after their initial attempts to resolve the matter informally — including outreach through mutual contacts and a demand message — had produced no response. With a structured approach addressing both the cheating and the criminal intimidation angle at the same time, the matter moved toward resolution far more effectively than their earlier unguided efforts had allowed.

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.

Preserve all digital evidence immediately: Screenshot every conversation, every blocked-number notification, every threatening message, and every payment record right now. Courts in India treat WhatsApp messages and screenshots as admissible electronic evidence under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023, provided they are preserved correctly. Don't wait.

Send a formal legal notice first: Before filing any complaint, a legal notice sent by an advocate through registered post creates a paper trail, demonstrates good faith, and often prompts the opposite party to respond. In many cases, it alone triggers a settlement. Your advocate can trace a current address through the landlord's records, prior rental agreements, or even through a phone number verification route.

And here's the thing — this type of matter sits at the intersection of cheating, criminal intimidation, and civil money recovery. Advocates who regularly handle tenant disputes and property-related fraud understand the specific evidentiary requirements and the procedural steps that a general practitioner may not be as familiar with. Engaging someone with domain-specific experience typically makes a measurable difference in how quickly the matter gets resolved.

Applicable Sections of Law

This case is mixed in nature — it involves both criminal elements (cheating and criminal intimidation) and a civil money recovery claim. The following provisions apply:

• Section 318 BNS (Cheating): Pooja dishonestly induced the landlord to hand over the consolidated deposit and then misappropriated the shares belonging to Meena and Ritu.
• Section 351 BNS (Criminal Intimidation): The threatening message naming their new address directly constitutes criminal intimidation, a cognizable offence.
• Section 316 BNS (Criminal Breach of Trust): As the deposit was handed to her on behalf of all three co-tenants, Pooja held their shares in a fiduciary capacity. Retaining those amounts without consent is criminal breach of trust.
• Order 37 CPC (Summary Suit for Money Recovery): For the civil recovery of the withheld deposit amount, a summary suit provides a faster track in civil court without full trial formalities.

Punishment and Penalties

• Section 318 BNS (Cheating): Imprisonment up to three years, or fine, or both. Cognizable, bailable, and non-compoundable without court permission.
• Section 316 BNS (Criminal Breach of Trust): Imprisonment up to three years, or fine, or both. Cognizable and bailable.
• Section 351 BNS (Criminal Intimidation): Imprisonment up to two years, or fine, or both. Where the threat is to cause death or grievous hurt, punishment extends to seven years. Cognizable, bailable, and compoundable with the permission of the court.
• Fine amounts under BNS are not fixed ceilings — courts determine quantum based on facts, and compensation to the victim can be ordered separately under Section 396 BNSS.

Jurisdiction — Where to File the Case

For the criminal complaint, the appropriate police station is the one with territorial jurisdiction over the area where the offence was committed — in this case, where the flat was located and where the money was withheld. The threatening message, depending on where it was received, can also ground jurisdiction at the recipient's location, as held in Sabu Thomas v. State of Kerala, 2004. For the civil recovery claim, the Civil Judge (Junior Division) or a Magistrate's Court with pecuniary jurisdiction up to Rs. 1 lakh is appropriate, since the amount is below that threshold. Consumer Forum jurisdiction doesn't apply here as this is not a consumer-service dispute. Frankly, getting jurisdiction right from the start is non-negotiable — filing in the wrong forum wastes time and can be used against you.

What if Police Refuse to File FIR?

Police sometimes hesitate to register FIRs in what they perceive as "civil disputes," even when criminal elements are clearly present. The Supreme Court in Lalita Kumari v. Government of UP, 2014 held that registration of FIR is mandatory if the information discloses a cognizable offence. Now, before you act, know your options if police still refuse:

• Submit a written complaint to the Superintendent of Police under Section 173(4) BNSS requesting directions to register the FIR.
• File a private complaint directly before the Judicial Magistrate under Section 175(3) BNSS — the Magistrate can take cognizance and direct police to investigate.
• Approach the High Court by way of writ petition under Article 226 of the Constitution, seeking a direction to register the FIR — this is typically a last resort but is effective.
• Keep certified copies of all refusal receipts or acknowledgement of your written complaint to the police station as evidence of non-cooperation.

Rights of the Accused

In the event Pooja is accused and arrested, she retains the following legal rights:

• Right against self-incrimination under Article 20(3) of the Constitution — she can't be compelled to be a witness against herself.
• Right to legal representation under Article 22(1) — she cannot be denied access to an advocate of her choice.
• Right to be produced before a Magistrate within 24 hours of arrest, as mandated under Article 22(2) and Section 57 BNSS.
• Right to be informed of the grounds of arrest and to receive a copy of the FIR as held in D.K. Basu v. State of West Bengal, 1997.
• Right to bail since all applicable offences here are bailable in nature, subject to conditions imposed by the Magistrate.

Bail Provisions

The offences under Sections 316, 318, and 351 BNS are all bailable. This means the accused is entitled to bail as a matter of right upon arrest, without requiring a court order for the grant itself, though conditions may be imposed. If there's any apprehension of arrest before it happens, Pooja could seek anticipatory bail under Section 482 BNSS before the Sessions Court. Regular bail after arrest can be sought under Section 480 BNSS from the Magistrate. Typical conditions in such matters include surrender of passport, periodic appearance at the police station, and a personal bond with sureties. Bail strategy matters here — the complainant's advocate can oppose liberal bail conditions if there is evidence of threats or likelihood of influencing witnesses.

Quashing of FIR / Case

The High Court holds inherent powers under Section 528 BNSS to quash an FIR in exceptional circumstances. Grounds typically accepted include: no prima facie offence disclosed, the complaint is an abuse of process, the matter is purely civil in nature, or the parties have compounded a compoundable offence. In this case, quashing is unlikely to succeed because the facts disclose both cheating (non-compoundable) and criminal intimidation, and the digital evidence is substantial. The Supreme Court in State of Haryana v. Bhajan Lal, 1992 laid down the categories under which quashing is permissible — these facts don't fall neatly within those categories. If a settlement is reached later, quashing through a compromise may be considered for the intimidation charge.

If You Are the Victim

• Preserve all screenshots, chat histories, transaction records, and threatening messages immediately — without altering them in any way.
• Obtain a written confirmation from the landlord about the deposit amount paid, the deductions made, and the amount owed to each co-tenant.
• Send a formal legal notice through an advocate by registered post and email — this is a critical first step before filing any complaint.
• File a criminal complaint at the jurisdictionally correct police station citing Sections 316, 318, and 351 BNS — attach all documentary evidence.
• Simultaneously, consider a civil summary suit under Order 37 CPC for recovery of the specific withheld amount, especially if criminal proceedings move slowly.

Documents You Must Keep Ready

• Aadhaar card and PAN card of all complainants
• Original or copy of the rental/lease agreement naming all three co-tenants
• WhatsApp screenshots of the notice given by Meena and Ritu to both Pooja and the landlord
• Screenshot or written confirmation from the landlord regarding the Rs. 13,500 settlement and the Rs. 4,000 owed to Ritu
• Screenshot of Pooja's message stating she would not take any utensils
• Screenshot of the threatening message with address reference
• Records of blocked-number notifications on all platforms
• Bank account details reflecting any partial payment of Rs. 5,000 received

What Evidence Is Required?

• Primary digital evidence: Original WhatsApp conversations, screenshots of threats, and blocked-contact records — preserved without editing, to be certified under Section 63 Bharatiya Sakshya Adhiniyam, 2023.
• Landlord's statement: Written or affidavit-based confirmation of the deposit amount, settlement paid, and his acknowledgment that Ritu is owed Rs. 4,000.
• Rental agreement: Establishes the deposit amount and tenancy terms for all three parties.
• Payment records: Bank statements or UPI transaction history showing Rs. 5,000 received back.
• Notice records: Screenshots timestamped showing the advance notice sent by Meena and Ritu, proving they complied with notice requirements.
• Threatening message: Screenshot preserved with metadata — this directly supports the Section 351 BNS charge.

How the Police Behave in Such Cases

Make no mistake — police often treat co-tenant money disputes as "civil matters" and may initially resist registering an FIR. They tend to suggest that the parties "settle it themselves." This is particularly common when the amount involved appears small. But the threatening message changes the character of the complaint significantly. Once a threat with a named address is on record, the matter becomes unambiguously criminal. Present a written complaint with all digital evidence attached and emphasise the Section 351 BNS threat angle prominently — that tends to shift the police's assessment of the complaint. If you have an advocate accompanying you or submitting the complaint formally, the response is typically more structured.

Timeline of Legal Process

• Week 1-2: Formal legal notice sent by advocate through registered post.
• Week 2-3: If no response, criminal complaint filed at police station with all evidence.
• Week 3-6: Police investigation — recording of statements from complainants, landlord, and attempts to contact the accused.
• Month 2-4: Chargesheet filed before Magistrate if sufficient evidence gathered (deadline: 60 days under Section 193 BNSS for bailable offences).
• Month 4-6: Magistrate takes cognizance, summons issued to accused.
• Month 6-12: Charges framed, trial begins, evidence recorded.

Advocate Sudhir Rao, Supreme Court of India