If you are stuck in such a situation, here is what to do.
Mr. Ajay Kumar, a resident of Aaravpur, hired a company called “Creative Living Designs” for the interior work of his new apartment. The company was run by a Mr. Rohan Mehra. After initial discussions, Mr. Kumar was impressed and paid an advance of ₹50,000 to commence the work, based on a quotation that stated a 12% fee on the total project cost of approximately ₹1.2 Lacs.
A month later, after providing only two very similar design mock-ups, Mr. Mehra abruptly informed Mr. Kumar that they could not continue the project. He cited “too many design modifications” from Mr. Kumar’s side as the reason for potential clashes. Shockingly, Mr. Mehra declared over a phone call that the entire ₹50,000 advance would be forfeited as a “designing fee,” a term never mentioned in the initial agreement or quotation.
Mr. Kumar discovered several red flags. The company had no registered office address or registration number. They did not provide a GST invoice for the fee charged. The payment was made to Mr. Mehra’s personal UPI number, not a company account. Furthermore, a project they showcased as their own work in the same society was later found to be a misrepresentation; they had merely supplied a labour contact for that flat. After much argument, a partner in the firm, Ms. Sunita Verma, returned ₹20,000 but refused to refund the remaining ₹30,000, unjustly charging an exorbitant amount for a single, unapproved design. Feeling deceived, Mr. Kumar decided to pursue legal action, starting with filing an FIR for cheating.
Advice in such cases
Document Everything: Keep a record of all conversations, including chats, emails, and call logs. Save all payment receipts, quotations, and any agreements, no matter how informal.
Send a Legal Notice: Before approaching the police, it is often advisable to have a lawyer send a formal legal notice to the other party. This notice will demand the return of your money and state your intention to pursue legal action if they fail to comply. This serves as a final opportunity for them to resolve the matter and acts as crucial evidence later on.
Gather Evidence of Fraud: Try to verify the company’s credentials. Check for a GST number, company registration (CIN), and a registered office address. If these are missing, it strengthens the case for fraudulent intent.
File a Complaint: If the legal notice is ignored, you can file a complaint with the police or directly with the Magistrate’s court.
Consumer Complaint: You can also file a complaint before the District Consumer Disputes Redressal Commission for deficiency in service and unfair trade practices.
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
Such cases often involve both civil and criminal elements. Under the new Indian laws, the following sections may be applicable:
Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS) – Cheating: This is applicable if it can be proven that the service provider had a dishonest intention from the very beginning to deceive you and induce you to pay money. The lack of a registered company, GST, and taking payment in a personal account are strong indicators of such intent.
Section 316 of the Bharatiya Nyaya Sanhita, 2023 (BNS) – Criminal Breach of Trust: This applies when you entrust your money (property) for a specific purpose (interior work), and the person dishonestly misappropriates it or converts it to their own use (keeping it as an arbitrary fee).
The Consumer Protection Act, 2019: For deficiency in service and unfair trade practices, you can seek a refund, compensation for mental harassment, and litigation costs.
If you are the complainant
Draft a Strong Complaint: Your complaint to the police should be clear, concise, and chronological. Detail every event, from the initial agreement to the refusal to refund the money. Attach copies of all evidence.
Highlight the Criminal Intent: Emphasize the elements of cheating and fraud. Focus on the misrepresentations, the lack of a legitimate business structure, and the dishonest retention of your money without providing the agreed-upon service.
Follow Up: Regularly follow up with the police station regarding the status of your FIR and the investigation.
Consider a Private Complaint: If the police do not register an FIR, you can file a private complaint under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) before the concerned Magistrate.
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
Stay Calm and Act Methodically: Avoid emotional outbursts or threats. Focus on building a solid case against the perpetrator.
Preserve All Communication: Do not delete any messages or emails, even if they seem insignificant. They form the backbone of your evidence.
Do Not Accept Partial or Vague Resolutions: If they offer a partial refund, insist on a full and final settlement agreement in writing before accepting. Ensure it doesn’t waive your right to further legal action unless you are satisfied.
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
Often, the police may initially view such matters as a “civil dispute” or a breach of contract, suggesting you go to court. This is a common hurdle. To overcome this, your complaint must clearly articulate the criminal elements. You must explain that this isn’t just a simple failure to perform a contract but a pre-planned act of cheating. Highlighting facts like the non-existence of a registered company, misrepresentation of past work, and refusal to provide proper invoices can persuade them to register an FIR under the relevant sections of the BNS.
FAQs people normally have
What evidence is required?
The more evidence you have, the stronger your case will be. Key evidence includes:
Proof of payment (bank statements, UPI transaction screenshots, receipts).
The initial quotation or agreement.
WhatsApp chats, SMS messages, and emails exchanged with the service provider.
Call recordings, if legally obtained and permissible.
A copy of the legal notice sent and the postal receipt.
Statements from any witnesses who were present during your discussions.
How long will the investigation take?
The duration of a police investigation can vary significantly. Under the Bharatiya Nagarik Suraksha Sanhita (BNSS), there are efforts to streamline timelines. However, factors like the complexity of the case, the workload of the police, and the cooperation of the accused can affect the duration. A simple case of cheating might see a chargesheet filed within 60 to 90 days, but more complex matters can take longer. Your lawyer can help in expediting the process by filing appropriate applications in court.
Advocate Sudhir Rao, Supreme Court of India