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

Mr. Rohan Mehra, a resident of Jayanagar, is currently facing a distressing situation involving a business legal services firm, “Apex Legal Solutions.” Over the last year, Mr. Mehra paid the firm more than thirteen lakh rupees for a variety of services, including setting up a sole proprietorship, incorporating a private limited company, and managing ongoing business compliances.

The core of the issue is that despite Apex Legal Solutions receiving the full payment in advance, a majority of the promised services have either not been delivered or remain incomplete. Mr. Mehra reports that the firm’s representatives consistently pressured him into purchasing additional services while his existing work was still pending. Each time he inquired about the status, he was met with upselling tactics, often justified by claims of new legal mandates or unforeseen delays, creating a false sense of urgency.

Trusting their professional facade, he continued to make payments, believing the work would eventually be completed. However, after numerous attempts to escalate the matter, the company’s responses have been evasive. Apex Legal Solutions is now outright refusing to issue a refund and is instead insisting that he continue with their services, a proposition Mr. Mehra finds untenable given the complete erosion of trust. This ordeal has caused him significant financial loss, wasted months of his time, and resulted in severe mental distress.

Having sent a final formal communication which was ignored, Mr. Mehra has decided to take legal action. He is in the process of filing a formal complaint through the eDaakhil portal of the consumer court, seeking a full refund of the amount paid, along with an additional thirteen lakh rupees as compensation for the harassment, financial damages, and the firm’s unethical business practices.

Advice in such cases

• Gather All Documentation: Collect every piece of evidence you have. This includes all invoices, payment receipts (bank statements, UPI transaction IDs), email correspondence, service agreements, chat messages, and call recordings if available.
• Send a Legal Notice: Before approaching the court, it is advisable to have a lawyer send a formal legal notice to the company. This notice should clearly state your grievances, the deficiency in service, and your demand for a refund and compensation within a specified period (e.g., 15 or 30 days). This notice serves as a final opportunity for the company to resolve the matter and is a crucial document in legal proceedings.
• File a Consumer Complaint: If the company fails to respond to the legal notice, you can file a complaint before the appropriate Consumer Disputes Redressal Commission under the Consumer Protection Act, 2019. This can be done online via the eDaakhil portal.
• Consider a Criminal Complaint: If the elements of cheating are present—such as dishonest inducement to deliver property (money) from the very beginning—you may also consider filing a police complaint.
• 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

In a situation like this, several legal provisions can be invoked:

• The Consumer Protection Act, 2019: This is the primary legislation for such cases. The company’s actions fall under “deficiency in service” (failure to provide services as promised) and “unfair trade practice” (using deceptive methods or upselling to generate sales). You can seek a refund, compensation for financial loss and mental agony, and litigation costs.
• The Bharatiya Nyaya Sanhita (BNS), 2023: If it can be proven that the company had a dishonest intention to deceive you from the outset and induced you to pay money based on false promises, it could amount to the criminal offense of cheating.
• Section 318 of BNS (Cheating): This section applies if someone fraudulently or dishonestly induces a person to deliver any property or to consent that any person shall retain any property. The punishment can include imprisonment and a fine.
• The Indian Contract Act, 1872: The agreement for services is a contract. A breach of this contract (non-performance of services) entitles you to sue for damages.

If you are the complainant

• Organize Your Evidence: Create a clear timeline of events. Arrange all your documents, emails, and payment proofs in chronological order. This will form the backbone of your case.
• Draft a Strong Complaint: Your complaint should be detailed, precise, and supported by evidence. Clearly articulate the deficiency in service, the unfair trade practices, and the resulting financial and mental harm.
• Quantify Your Claim: Be specific about the relief you are seeking. This should include the full refund amount, plus a separate, justifiable amount for compensation for mental harassment, loss of opportunity, and legal costs.
• Follow Procedural Requirements: Ensure your complaint is filed before the correct consumer commission based on the pecuniary jurisdiction (the total value of goods/services and compensation claimed).
• 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 Methodical: Do not engage in hostile communication with the company. Keep all interactions formal and documented, preferably via email.
• Do Not Accept Partial or Vague Resolutions: Be wary of offers from the company to “continue the service” or provide a small, partial credit. Stick to your demand for a full refund and compensation if you have lost all trust.
• Document Harassment: Keep a log of every instance of evasive responses, delays, and mental distress caused by the company’s actions. This will be crucial for your compensation claim.
• 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

The police are generally the first point of contact for criminal matters, not civil or consumer disputes. If you approach the police, their reaction will depend on how you frame your complaint.

• For Deficiency in Service: If you report the matter as a simple failure to provide services, the police will likely direct you to the Consumer Commission, as it is not a criminal offense.
• For Cheating (Section 318 BNS): If you file a complaint alleging cheating with strong preliminary evidence of dishonest intent from the beginning, the police are obligated to register a First Information Report (FIR) if a cognizable offense is made out. They will then conduct an investigation as per the procedures laid down in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023. However, police might sometimes be reluctant to register FIRs in matters that appear to be of a civil nature, and you may need to approach a senior officer or the Magistrate’s court.

FAQs people normally have

• Can I file a consumer case and a criminal complaint simultaneously?
  Yes, the remedies are concurrent. A consumer case is for deficiency in service and compensation (a civil remedy), while a criminal case is to punish the offender for a crime like cheating. The proceedings can go on in parallel.
• What is the difference between a refund and compensation?
  A refund is the return of the money you paid for the services (e.g., ₹13 lakhs). Compensation is an additional amount awarded by the court for the losses and suffering you endured, such as mental agony, loss of business opportunities, and litigation costs (e.g., the additional ₹13 lakhs claimed).
• Do I have to be physically present in court for a consumer case?
  The Consumer Protection Act, 2019, and the eDaakhil portal have provisions for virtual hearings. While physical presence may be required at certain stages, much of the process can be managed online or through your lawyer, making it more accessible.

What evidence is required?

Strong evidence is the key to winning such a case. You must meticulously collect and present:

• Proof of Payment: Bank statements, credit card statements, screenshots of UPI transactions, and official receipts from the company.
• Communication Records: All email threads, text messages, WhatsApp chats, and if possible, call recordings where the services were discussed, promised, or follow-ups were made.
• Service Agreement/Contract: The initial agreement or proposal that outlines the scope of work, deliverables, and timelines.
• Legal Notice: A copy of the legal notice sent to the company and any response (or lack thereof).
• Proof of Incomplete Work: Any document or communication that shows the work is still pending or was not delivered as promised. For example, if a company was not incorporated, the absence of a Certificate of Incorporation is proof.

How long will the investigation take?

• Consumer Commission Case: The Consumer Protection Act, 2019, mandates that consumer commissions should strive to decide cases within three to five months. However, in practice, due to the caseload and procedural complexities, it can take anywhere from 6 months to over a year.
• Police Investigation (Criminal Case): The timeline for a police investigation under the BNSS is not fixed. It depends on the complexity of the case, the evidence available, and the cooperation of the parties involved. It can range from a few months to much longer, after which the police file a final report (chargesheet or closure report) before the court.

Advocate Sudhir Rao, Supreme Court of India