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

Arjun Sharma, a student at Zenith University in Vardhanpur, loaned ₹1,000 to his batchmate, Rohan Verma, approximately four months ago. The money was intended to help Rohan complete a crucial academic project. For convenience, Arjun transferred the funds via the ‘SwiftPay’ UPI application to Priya Singh, another mutual acquaintance of theirs, as Rohan’s own UPI account was reportedly facing temporary issues. Despite repeated attempts by Arjun to contact both Rohan and Priya regarding the repayment, neither has responded to his calls or messages. Arjun is now seeking legal advice on how to recover his money.

Advice in such cases ⚖️

When faced with a situation where a loan, even a small one, is not repaid, especially when made through digital channels, it can be frustrating. While UPI transactions do not offer a direct ‘chargeback’ mechanism like credit cards, there are legal avenues available to recover your funds. The first step should always be to try and resolve the matter amicably through persistent communication. If that fails, consider sending a formal legal notice. If all else fails, approaching the police and potentially initiating civil recovery proceedings may be necessary.

Applicable Sections of Law 📜

• Bharatiya Nyaya Sanhita (BNS), 2023:
  • Section 316 (Cheating): This section defines cheating, which involves dishonestly inducing a person to deliver any property or to consent that any person shall retain any property. If the intention to defraud was present from the beginning, this section might apply.
  • Section 319 (Cheating and dishonestly inducing delivery of property): This is a specific instance of cheating where the victim is induced to deliver property.
  • Section 303 (Criminal Breach of Trust): While typically applicable in cases where property is entrusted for a specific purpose, it might be considered if the money was given with a clear understanding of trust for a particular use, and then dishonestly misappropriated.
• Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023:
  • Section 173 (Information in cognizable cases): This section deals with the procedure for filing a First Information Report (FIR) for cognizable offenses, which are offenses for which the police can arrest without a warrant.

If you are the complainant 🧑‍⚖️

• Gather all evidence: Collect screenshots of the UPI transaction, chat messages (WhatsApp, SMS), call records, or any other communication establishing the loan and the attempts to recover it.
• Send a Legal Notice: Have an advocate draft and send a legal notice to Rohan Verma and Priya Singh, demanding repayment within a stipulated time. This often prompts action and serves as crucial evidence in further legal proceedings.
• File a Police Complaint (FIR): If the legal notice yields no response, you can file a First Information Report (FIR) under Section 173 of BNSS at your local police station, alleging cheating or criminal breach of trust under the relevant sections of BNS.
• Civil Suit for Recovery: Simultaneously or subsequently, you can file a civil suit for recovery of money in the appropriate civil court. This is a direct legal action to recover the debt.

If you are the victim 💔

Being a victim of such circumstances can be emotionally taxing. It’s important to understand your rights and the legal recourse available. Do not hesitate to seek legal counsel. Document everything meticulously. Your detailed records will be vital for any legal action. Remember, even small amounts are recoverable under law, and justice can be sought for dishonest acts.

How the police behave in such cases 👮

In cases involving smaller amounts, police might initially be hesitant to register an FIR immediately, sometimes advising a civil remedy first. However, if there is clear evidence of dishonest intention from the outset (i.e., cheating), or criminal breach of trust, they are obligated to register an FIR under BNSS. Persistence and presenting a well-documented case, possibly with the assistance of an advocate, can help ensure your complaint is taken seriously. They will investigate, record statements, and gather evidence. If sufficient evidence is found, they will file a charge sheet, and the matter will proceed to court.

FAQs people normally have 🤔

• Can I initiate a chargeback on a UPI transaction? No, UPI transactions are typically immediate and irreversible. Unlike credit card transactions, there isn’t a direct chargeback mechanism through the UPI platform itself for disputes like unpaid loans.
• What if I don’t have a written loan agreement? While a written agreement is ideal, it’s not always mandatory. Digital evidence like chat messages, transaction records, and witness testimonies (if any) can serve as proof of the loan and the understanding between parties.
• Is ₹1,000 too small an amount for legal action? No, no amount is too small if a legal wrong has been committed. While the cost-benefit of legal action for very small amounts should be considered, the principle of justice applies regardless of the sum.
• What if the person changes their address or contact number? This complicates matters, but legal notices can be served through various means, including publication in newspapers if their whereabouts are completely unknown. The police investigation would also attempt to trace them.

What evidence is required? 📝

• UPI Transaction Details: Screenshots or statements from your ‘SwiftPay’ (or relevant UPI app) showing the transaction details, including the amount, date, time, and the recipient’s UPI ID.
• Communication Records: Screenshots of chat messages (WhatsApp, SMS), emails, or any other digital communication where the loan was discussed, repayment was promised, and attempts to contact them were made.
• Call Records: If possible, call logs showing attempts to reach Rohan and Priya.
• Bank Statements: Your bank statement showing the debit for the UPI transaction.
• Witnesses: If there were any other individuals present or aware of the loan agreement, their testimony can be valuable.

How long will the investigation take? ⏳

The duration of an investigation under BNSS can vary significantly depending on the complexity of the case, the cooperation of the parties involved, and the workload of the police department. For straightforward cases with clear evidence, it might be resolved relatively quicker. However, if the accused is untraceable or denies the allegations, the investigation could take several weeks to months. Following the investigation, the court proceedings would commence, which also have their own timelines.

Advocate Sudhir Rao, Supreme Court of India