If you are stuck in such a situation, here is what to do.

Mr. Alok Verma, a resident of Jaipur, was relieved to see his name on the “Return Payment” list published on the website of Apex Investment Group. This company had been under investigation by the Securities and Exchange Board of India (SEBI) for running an unauthorized investment scheme, and thousands of investors like Mr. Verma were awaiting refunds. However, his relief was short-lived. Weeks passed, but the promised amount never appeared in his bank account. The company’s contact numbers were perpetually busy, and their emails went unanswered. Mr. Verma was left in a state of confusion and distress, wondering what the “Return Payment” status truly meant and what his next steps should be to recover his hard-earned money.

Advice in such cases

Navigating the aftermath of a financial scheme’s collapse can be daunting. If you find yourself in a similar situation, it is crucial to act methodically.

• Take Screenshots: Immediately capture dated screenshots of the webpage showing your name or details on the refund list. This is crucial digital evidence.
• Check Bank Records: Thoroughly review all your bank statements from the date the list was published to ensure the payment was not missed or credited to a different account.
• Official Communication: Attempt to establish formal communication. Send a registered post letter (AD) to the company’s official address and to the SEBI-appointed administrator or committee overseeing the refunds. This creates a legal record of your attempt to seek clarification.
• 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 typically involve a mix of regulatory and criminal laws:

• The SEBI Act, 1992: This is the primary legislation governing securities markets in India. SEBI has wide-ranging powers to investigate such schemes, issue directions, and facilitate the refund process for affected investors.
• Bharatiya Nyaya Sanhita, 2023 (BNS): Provisions related to cheating, criminal misappropriation of property, and criminal breach of trust may apply. For instance, Section 316 (Criminal breach of trust) and Section 318 (Cheating) of the BNS could be invoked against the company’s promoters.
• The Companies Act, 2013: If the entity is a registered company, provisions related to fraud and mismanagement under this act can also be relevant.

If you are the complainant

As the person seeking the refund, you are the complainant. Your role is to be proactive and systematic.

• Organize Your Documents: Compile all investment-related documents, including application forms, receipts, certificates, and any communication with the company.
• File a Formal Complaint: Lodge a formal complaint on the SEBI SCORES (SEBI Complaint Redress System) portal. Attach all supporting documents, including the screenshot of the refund list and proof of non-receipt of funds.
• Consider a Police Complaint: If you suspect fraud, you can file a complaint with the local police or the Economic Offences Wing (EOW), alleging cheating and criminal breach of trust under the BNS.
• 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

Realizing you are a victim of a large-scale financial scheme can be overwhelming. Focus on these immediate steps.

• Secure Your Information: Ensure all your original investment documents are in a safe place. Make multiple digital and physical copies.
• Connect with Other Victims: Often, investor groups form on social media or messaging platforms. Joining such a group can provide valuable information and collective strength, but be cautious about sharing sensitive personal data.
• Do Not Pay Extra: Be wary of anyone who contacts you promising to expedite your refund for an additional fee. These are often secondary scams targeting vulnerable investors.
• 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

Police response to financial fraud can vary. Initially, a local police station might be hesitant to register a First Information Report (FIR), often terming it a “civil dispute.” However, if your complaint clearly outlines the elements of a criminal offense like cheating, they are obligated to register an FIR under the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). In cases involving large sums or many victims, the case is typically transferred to a specialized agency like the Economic Offences Wing (EOW), which has more expertise in handling complex financial investigations.

FAQs people normally have

What does seeing my name on a “Return Payment” list actually mean?

It generally means that your claim has been verified and approved for processing by the committee or administrator handling the refunds. However, it does not guarantee that the payment has been disbursed or credited to your account. It is simply a step in the process.

How can I check if the money was sent to the correct bank account?

This is difficult without the company’s cooperation. The best course is to file a formal query with the SEBI-appointed committee or the company via registered post, specifically asking for the transaction details (UTR number, date of transfer, and destination account number) for your refund.

What should I do if the company is completely unresponsive?

If the company is unresponsive, your primary point of contact becomes the regulatory authority, SEBI. Use the SCORES platform diligently. Additionally, pursuing the matter through a lawyer can open up legal channels to compel the company or the refund committee to provide information.

What evidence is required?

To build a strong case, you will need the following evidence:

• Original investment certificates, bonds, or passbooks.
• Payment receipts or bank statements showing the transfer of funds to the company.
• Any correspondence (letters, emails) with the company.
• A copy of your PAN card and Aadhaar card, as submitted to the company.
• Bank account statements for the period you were expecting the refund.
• Screenshots or printouts of the company’s website showing the refund list with your name.

How long will the investigation take?

Investigations into large-scale financial frauds are notoriously slow. The process involves collecting data from thousands of investors, forensic audits of the company’s accounts, and liquidating assets to generate funds for refunds. A regulatory investigation by SEBI can take several months to years. If a criminal case is filed, the investigation and subsequent trial can extend for an even longer period. Patience and persistent follow-up are key.

Advocate Sudhir Rao, Supreme Court of India