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.
My client, Priya Verma, a resident of Lucknow, came across what appeared to be a legitimate handicraft business run through an Instagram page sometime around 18 February 2025. The seller, operating under a personal account, was offering handmade home décor items at attractive prices. Priya placed an order and transferred ₹1,999 via UPI to the seller's linked account — the UPI ID traced back to a name that appeared on her payment screen as a personal account holder in Surat. The payment went through without a hitch. And then, silence.
Within hours, the seller's Instagram account had blocked Priya entirely. Messages went unread. The profile became inaccessible. She tried reaching the account from a different device and the page was still active, but she had clearly been blocked. She had her UPI transaction reference number, screenshots of the product conversation, and the payment confirmation. But she had no idea what to do next.
Priya had already tried filing a complaint on the Cyber Crime portal at cybercrime.gov.in and had contacted her bank, Kotak Mahindra Bank, to flag the transaction. Neither had resulted in a satisfactory response in the weeks that followed. A friend referred her to Advocate Sudhir Rao. The approach shifted immediately. A formal complaint was structured under applicable criminal provisions, the UPI handle was traced through the payment ecosystem's grievance mechanism, and coordinated pressure was placed on both the platform and the payment intermediary. The matter moved considerably faster once the complaint was filed with the right specificity, and Priya was able to recover her amount through the bank's dispute resolution channel backed by the legal notice.
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: Don't wait. Screenshot the seller's profile, the payment screen, transaction confirmation, and every message you ever exchanged. Store these in at least two locations — your phone and a cloud backup. Once a social media account is deactivated, recovering that data becomes difficult even with a court order.
File on cybercrime.gov.in without delay: The National Cyber Crime Reporting Portal allows you to report financial fraud with UPI transaction reference numbers. Mention explicitly that you were blocked after payment and that you suspect serial fraud. Banks can freeze recipient accounts faster when a portal complaint reference number exists.
Now, before you act on any of this alone — this category of case, UPI-based online payment fraud through social media sellers, involves specific procedural steps under BNSS and coordination with payment intermediaries, RBI's grievance framework, and the Information Technology Act. A general practitioner who doesn't regularly handle cyber fraud matters may miss critical evidentiary steps or file complaints under incorrect provisions, weakening the case at the investigation stage itself.
Applicable Sections of Law
- Section 318(4) BNS (Cheating and dishonestly inducing delivery of property): Receiving payment under false pretence and then cutting all contact is classic cheating. This section carries serious criminal consequences.
- Section 319 BNS (Cheating by personation): If the seller was operating under a false identity or fabricated persona, this section applies alongside Section 318.
- Section 66C and Section 66D of the Information Technology Act, 2000: Identity theft and cheating by impersonation using a computer resource — applicable where the UPI ID or seller identity was fraudulent.
- Section 3 read with Section 4 of the Information Technology Act, 2000: Electronic records and their admissibility — ensures your screenshots, transaction logs, and UPI references are legally valid evidence before any court or authority.
Punishment and Penalties
- Section 318(4) BNS: Imprisonment up to seven years and a fine. Cognizable and non-bailable.
- Section 319 BNS: Imprisonment up to three years, or fine, or both. Cognizable offence.
- Section 66C IT Act: Imprisonment up to three years and a fine up to ₹1,00,000.
- Section 66D IT Act: Imprisonment up to three years and a fine up to ₹1,00,000.
Make no mistake — even a ₹1,999 fraud is a cognizable criminal offence. Police cannot refuse to register an FIR citing the small amount. The offence is non-bailable under Section 318(4) BNS, which gives the complainant real leverage.
Jurisdiction — Where to File the Case
Jurisdiction is flexible here. Under Section 175 BNSS, a complaint can be filed at the police station where the complainant resides, where the fraudulent transaction originated, or where the server processing the UPI transaction is located. The Cyber Crime Cell of the city where the victim resides, in this instance Lucknow, is the most practical starting point. If the complaint is filed online via cybercrime.gov.in, it gets routed automatically to the jurisdictional Cyber Crime Police Station. And here's the thing — a wrongly filed complaint can be returned or delayed significantly, so getting this right from day one matters more than people realise.
What if Police Refuse to File FIR?
It happens. And when it does, you have clear statutory remedies.
- File a written complaint before the Superintendent of Police (SP) of your district under Section 173(4) BNSS — the SP can direct registration of an FIR.
- File a private complaint directly before the Judicial Magistrate under Section 175(3) BNSS, attaching all documentary evidence.
- Approach the High Court by way of a writ petition under Article 226 of the Constitution seeking directions to register the FIR — this is particularly effective when police inaction is documented.
- Reference: in Lalita Kumari v. Government of UP, 2014, the Supreme Court held that registration of FIR is mandatory if the information discloses a cognizable offence. This precedent is directly relevant here.
Rights of the Accused
If the person on the other side of this transaction is eventually identified and arrested, they hold certain statutory rights that any accused person is entitled to under Indian law.
- Right against self-incrimination under Article 20(3) of the Constitution — no person can be compelled to be a witness against themselves.
- Right to legal representation under Article 22 — the accused must be informed of their right to consult an advocate of their choice at the time of arrest.
- Right to be produced before a Magistrate within 24 hours of arrest under Section 187 BNSS.
- Right to a copy of the FIR and to know the grounds of arrest under Section 47 BNSS.
- Right to inform a relative or friend of the arrest immediately.
Bail Provisions
Cheating under Section 318(4) BNS is a non-bailable offence. The accused can't claim bail as a right at the police station. They must approach the court.
- Anticipatory bail under Section 482 BNSS may be sought from a Sessions Court or High Court if the accused apprehends arrest.
- Regular bail under Section 480 BNSS may be granted by the Magistrate or Sessions Court after arrest, considering the nature of the offence, flight risk, and likelihood of tampering with evidence.
- Typical bail conditions include surrender of travel documents, periodic reporting to the investigating officer, and a personal bond with sureties.
- Given the digital nature of the fraud, courts often impose conditions preventing the accused from operating the relevant UPI accounts or social media profiles during the bail period.
Quashing of FIR / Case
The accused may attempt to quash the FIR before the High Court under Section 528 BNSS, which preserves the High Court's inherent powers to prevent abuse of the process of law. Grounds typically raised include lack of prima facie offence, civil nature of the dispute, or a compromise between parties. Frankly, in a straightforward payment-and-block fraud case, quashing is generally difficult to obtain. The Supreme Court in State of Haryana v. Bhajan Lal, 1992 laid down specific categories where quashing is appropriate, and a clear case of cheating with digital evidence rarely qualifies. If the matter is settled between parties, a compounding petition accompanied by the quashing application has a better chance of success before the High Court.
If You Are the Victim
- File a complaint on cybercrime.gov.in immediately and save the acknowledgement number — this is your paper trail for all follow-up action.
- Contact your bank's fraud reporting helpline (RBI's centralised helpline number 1930 is specifically for financial cyber fraud) and quote the UTR/transaction reference number.
- Send a formal legal notice to the UPI-linked bank through an advocate, demanding reversal of the transaction and threatening criminal action — banks respond significantly faster to legal notices.
- Report the Instagram account using the platform's built-in reporting tool, selecting "Scam or Fraud" — platform-level reports trigger internal review and can get the account suspended.
- If multiple victims exist, a collective complaint strengthens the case substantially and helps establish a pattern of serial fraud before the investigating authority.
Documents You Must Keep Ready
- Aadhaar card or PAN card as identity proof
- UPI transaction screenshot showing recipient name, UPI ID, amount, and timestamp
- Bank statement or transaction history showing the debit
- UTR (Unique Transaction Reference) number from your UPI app
- Screenshots of all Instagram conversations with the seller before payment
- Proof that you were blocked (screenshot showing "you can't message this account" or equivalent)
- Cybercrime portal complaint acknowledgement number
- Any product listing screenshot or advertisement from the seller's profile
What Evidence Is Required?
- Primary digital evidence: UPI payment confirmation with transaction ID — this is the strongest single piece of evidence linking you to the accused.
- Secondary evidence: Screenshots of chat history establishing that goods/services were promised in exchange for payment.
- Proof of blocking — screenshots showing loss of access to the seller's account post-payment.
- Bank statement corroborating the debit on the relevant date and amount.
- Any product listing or advertisement that formed the basis of your purchase decision.
- Cybercrime portal complaint receipt, creating a documented timeline of your redressal attempts.
- If available, evidence of other victims who paid the same UPI ID — admissible as proof of a criminal scheme under Section 8 of the Indian Evidence Act, 1872 (evidence of similar facts).
How the Police Behave in Such Cases
Small-amount cyber fraud complaints face resistance. That's just the ground reality. Officers at the local station may suggest this is a civil matter or that the amount is "too small" to pursue, both of which are legally incorrect positions after Lalita Kumari v. Government of UP, 2014. Cyber Crime Cells in larger cities like Lucknow or Jaipur tend to be better equipped and more responsive to UPI fraud complaints. And here's the thing — arriving with a complete, pre-organised complaint document makes a measurable difference. UPI reference number, screenshots, and a written narration, all in order. Disorganised complaints get deprioritised. An advocate's covering letter accompanying the complaint often changes the tone of police engagement noticeably.
Timeline of Legal Process
- Filing cybercrime complaint: Day 1 — immediate; acknowledgement received online.
- Police registration of FIR: Typically 3–15 days from complaint, subject to police responsiveness.
- Investigation and bank/UPI ID tracing: 30–90 days depending on cooperation from payment intermediary.
- Chargesheet filing: Within 60–90 days of arrest under BNSS timelines.
- Cognizance by Magistrate: 2–4 weeks after chargesheet submission.
- Framing of charges: 3–6 months from cognizance.
- Trial (examination of witnesses, arguments): 1–3 years depending on complexity and court workload.
- Judgment: Follows completion of trial.
- Appeal, if any: Sessions Court or High Court — additional 1–2 years.
How Long Will the Investigation Take?
Realistically, tracing a UPI ID to a bank account holder takes 30–45 days if the bank and NPCI (National Payments Corporation of India) respond to police requests promptly. Identifying and locating the accused physically may take an additional 30–60 days. If the accused is using a fraudulent identity or a mule account, investigation can stretch to 3–6 months. Filing a complaint early significantly affects how quickly the trail remains fresh.
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.