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.
Arjun Mehta, a salaried professional from Gomti Nagar, Lucknow, had been receiving incessant calls and WhatsApp messages since early February 2025 demanding repayment of a personal loan he had never applied for. The messages came from an entity calling itself "IndiaFirst Fincare" — threatening legal action, asset seizure, and even visits to his workplace. Arjun ignored the first few. Then came a message marked "FINAL WARNING," and the tone turned aggressive.
He first tried lodging a complaint at his local police station. The officers told him it was a civil matter and declined to register an FIR. He also filed an online grievance with a consumer portal, but received no substantive response for over six weeks. Frustrated, and increasingly anxious about his reputation at work, Arjun approached Advocate Sudhir Rao in late March 2025.
The approach shifted immediately. A detailed complaint was drafted citing specific provisions under the Bharatiya Nyaya Sanhita, accompanied by a representation to the Reserve Bank of India's Ombudsman and a formal notice to the recovery agents. A criminal complaint was filed before the Judicial Magistrate. Within weeks, the threatening calls stopped. The entities involved were put on notice, and Arjun's name was cleared from the fraudulent loan account through coordinated action. Handling cyber-financial fraud is quite different from routine debt disputes, and that specialised handling made a measurable difference in how quickly the matter resolved.
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.
And here's the thing — fake loan recovery harassment sits at the intersection of cyber law, criminal law, and banking regulation. It's not a straightforward complaint you can walk into any police station and resolve in an afternoon. Advocates who regularly handle cyber-financial fraud know which regulatory bodies to approach simultaneously, how to frame the complaint for maximum effect, and what evidence to preserve before it disappears. A general practitioner may not be fully familiar with this specific procedural terrain, and that gap can cost you weeks or months.
Do not pay anything: Under no circumstances should you make any payment toward a loan you didn't take. Payment, even a small one, can be construed as acknowledgment of liability and will severely weaken your legal position.
Preserve all communications: Screenshot every message, note every call with date and time, and don't delete anything. This digital trail is your primary evidence. Save it across multiple locations — email, cloud storage, and a physical device.
Applicable Sections of Law
- Section 318 BNS (Cheating): Applicable where a fraudulent loan is registered in your name through deception to extract money or threaten you into paying.
- Section 351 BNS (Criminal Intimidation): Threatening messages warning of "serious consequences" to coerce payment constitute criminal intimidation under this provision.
- Section 316 BNS (Forgery for the purpose of cheating): If your identity documents were misused to create a fictitious loan account, forgery provisions apply directly.
- Section 66C and 66D of the Information Technology Act, 2000: Identity theft and cheating by personation using computer resources — directly relevant when someone uses your Aadhaar, PAN, or mobile OTP to fraudulently register a loan.
Punishment and Penalties
- Section 318 BNS (Cheating): Imprisonment up to three years, or fine, or both. If the cheating involves delivery of property or is of a serious nature — imprisonment up to seven years and fine.
- Section 351 BNS (Criminal Intimidation): Imprisonment up to two years, or fine, or both. If the threat is of death or grievous hurt — up to seven years.
- Section 316 BNS (Forgery): Imprisonment up to two years, fine, or both; aggravated forms attract up to seven years.
- Nature of offence: Section 318 and 351 BNS are cognizable and non-bailable in their aggravated forms. Sections involving identity theft under the IT Act are also cognizable.
Jurisdiction — Where to File the Case
For criminal complaints, the FIR should be filed at the police station that has territorial jurisdiction over the place where you received the threatening messages — which is typically your residential address. Cyber crime complaints can also be filed at any cyber crime police station or through the National Cyber Crime Reporting Portal (cybercrime.gov.in), which has national reach regardless of where the fraud originated. The Judicial Magistrate in your city has cognizance jurisdiction. Make no mistake — filing in the correct forum matters. A complaint filed in the wrong jurisdiction can be dismissed on technical grounds, causing unnecessary delay.
What if Police Refuse to File FIR?
Police reluctance in cyber-financial fraud cases is common. But you're not without options. Here's what you can do:
- Submit a written complaint to the Superintendent of Police (SP) of the district under Section 173(4) BNSS, requesting direction to the concerned station 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 investigation.
- File a complaint with the RBI Banking Ombudsman and the concerned Regulated Entity's Nodal Grievance Officer simultaneously — this creates a parallel regulatory pressure track.
- As a last resort, approach the High Court under Article 226 of the Constitution seeking a writ of mandamus directing the police to register the FIR (as affirmed in Lalita Kumari v. Government of UP, 2014, where the Supreme Court held that registration of FIR is mandatory for cognizable offences).
Rights of the Accused
Now, before you call your advocate, know this. If you're wrongly named as a defaulter, or if false complaints are filed against you by the recovery agents, you have defined constitutional and statutory protections:
- Right against self-incrimination: Under Article 20(3) of the Constitution, you cannot be compelled to be a witness against yourself. You're not obligated to answer any questions that may incriminate you.
- Right to legal representation: Article 22 of the Constitution guarantees your right to consult and be defended by an advocate of your choice from the moment of arrest.
- Right to be produced before a Magistrate within 24 hours: No police authority can detain you beyond 24 hours without Magistrate remand, as mandated under Article 22(2).
- Right to know grounds of arrest: You must be informed in writing of the reasons for your arrest.
- Right to a copy of the FIR: You're entitled to a free copy of the FIR if one is filed against you.
Bail Provisions
If you're wrongly arrested in connection with such a complaint, bail strategy matters. Under Section 480 BNSS, bail can be sought for bailable offences at the police station itself. For non-bailable offences, a bail application is filed before the Magistrate or Sessions Court under Section 483 BNSS. Frankly, if there's a credible apprehension of arrest — for example, if a false FIR has been registered against you by the recovery agents — anticipatory bail under Section 482 BNSS can be sought from the Sessions Court or High Court. Typical bail conditions in such matters include furnishing a surety, surrendering travel documents, and a direction not to tamper with evidence. Your advocate will tailor the bail application to the specific facts on record.
Quashing of FIR / Case
If a recovery agent or financier has filed a false FIR against you to coerce payment, the High Court has inherent powers under Section 528 BNSS to quash such proceedings. Grounds for quashing include: no prima facie disclosure of a cognizable offence, the FIR being an abuse of the process of court, or the matter being settled between parties in compoundable offences. As held in State of Haryana v. Bhajan Lal, 1992, the Supreme Court laid down specific categories where FIR quashing is warranted, including cases where the allegations do not constitute any offence. This remedy is particularly effective when the "loan" complaint against you is clearly fabricated and malicious.
If You Are the Victim
- Immediately block the numbers harassing you and take full screenshots of every message before doing so — preserve the evidence first, block second.
- File a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) — include all screenshots, call logs, and sender details in your complaint.
- Send a written complaint to your nearest bank or NBFC that is being falsely linked to this "loan," demanding a written clarification that no such loan exists in your name.
- File a complaint with the RBI Banking Ombudsman if the harassing entity is a regulated financial institution or claims to be one.
- Don't engage the recovery agents in conversation — any verbal admission, however casual, can be misrepresented. All communication should go through your advocate in writing.
Documents You Must Keep Ready
- Aadhaar card and PAN card copies — to establish your identity and to check if they were misused.
- Screenshots of all threatening messages and WhatsApp communications with timestamps.
- Call logs showing repeated calls from the recovery agents.
- Any written correspondence or emails received from the fake loan entity.
- Your bank statements for the relevant period, showing no loan credit in your account.
- CIBIL / credit report — pull a fresh report to verify if a fraudulent loan entry exists against your name.
- Any police complaint acknowledgment or complaint reference number already filed.
- Identity proof for the address where the calls/messages were received (utility bill, rent agreement).
What Evidence Is Required?
- Digital evidence (primary): Screenshots of threatening messages, call recordings if legally captured, email headers, and WhatsApp chat exports with timestamps.
- Credit bureau report: A CIBIL or Experian report showing the fraudulent loan account — this is primary documentary evidence of identity theft.
- Bank statement: Showing absence of any loan disbursement to your account.
- KYC mismatch report: Obtained from the financial institution, showing that your documents were used without your consent.
- Witness testimony: Colleagues or family members who were contacted or threatened by recovery agents.
- Forensic evidence: If your Aadhaar OTP was misused, the telecom provider's call records and authentication logs from UIDAI can be subpoenaed.
How the Police Behave in Such Cases
Cyber-financial fraud involving fake loans is often treated with initial scepticism by local police, particularly in stations that lack a dedicated cyber cell. Officers may suggest it's a "civil matter" or ask you to "sort it out with the company." That's incorrect — criminal intimidation and identity theft are cognizable offences requiring mandatory FIR registration, as held in Lalita Kumari v. Government of UP, 2014. Dedicated cyber crime stations are generally more responsive and better equipped. Expect delays at the local station level but quicker traction once the matter escalates to the SP or the cyber crime portal. And here's the thing — your advocate's written representation with specific section citations typically changes the tone of police response significantly.
Timeline of Legal Process
- Week 1-2: Filing of cyber crime complaint online and/or FIR at police station; sending legal notice to the harassing entity.
- Week 2-4: Police registers FIR (or you escalate to SP / Magistrate); simultaneous RBI Ombudsman complaint filed.
- Month 1-3: Police investigation begins; summons issued to recovery agents; statements recorded.
- Month 3-6: Chargesheet filed if sufficient evidence gathered; cognizance taken by Magistrate.
- Month 6-12: Framing of charges; trial begins; examination of witnesses.
- Year 1-2: Arguments, judgment, and if needed — appeal before Sessions Court or High Court.
- Parallel track: Loan entry deleted from credit bureau records through bank/NBFC correspondence and, if resisted, through civil suit for defamation or damages.
How Long Will the Investigation Take?
In cyber fraud matters, police investigation typically takes between 60 and 180 days, depending on the complexity and the number of accused. Chargesheet must be filed within 60 days of arrest of the accused under BNSS timelines, or the accused becomes entitled to default bail. If the accused is not yet arrested, investigation can extend further. Parallel regulatory proceedings (RBI Ombudsman) typically conclude within 30 to 90 days.
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.