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

A gentleman, Mr. Alok Sharma from Janakpur, recently found himself in a distressing situation. His close relative was defrauded of approximately 12 Lakhs in a sophisticated online investment scam. The scammers had created a convincing facade, using a fake company name, “Quantum Edge Investments,” and even a fraudulent SEBI registration number to appear legitimate.

Upon realizing the fraud, Mr. Sharma promptly reported the incident to the National Cyber Crime Reporting Portal and a First Information Report (FIR) was registered. The assigned Investigating Officer (IO) later informed him that they had successfully frozen the 12 Lakhs, which had been transferred to three different bank accounts.

However, the situation took a complicated turn. The police officer suggested they engage a specific advocate. This advocate then demanded a fee of 15% of the recovered amount, which would amount to 1.8 Lakhs, asking for a significant portion as an upfront payment. To make matters worse, there was an insinuation that the police officer would also need to be paid around 1.5 Lakhs for his “efforts” in the recovery process. This has left Mr. Sharma confused and concerned about the legality of such demands, especially since the lost money was earned legitimately and all taxes had been paid on it.

Advice in such cases

Navigating the aftermath of a financial scam can be as challenging as the scam itself. It is crucial to proceed with caution and be aware of your rights and the correct legal procedures.

• Document Everything: Keep meticulous records of all communications with the police, the advocate, and any other parties involved. Note down dates, times, names, and the substance of conversations.
• Official Channels Only: All financial transactions related to legal fees should be official, with proper receipts and agreements. Never pay cash without documentation.
• Understand the Roles: The police’s duty is to investigate the crime and recover stolen assets as part of their official responsibilities. They are salaried public servants. An advocate’s role is to represent you legally in court to get the frozen money released.
• 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 sections from various Indian statutes, including the new criminal laws:

• Bharatiya Nyaya Sanhita, 2023 (BNS): Section 316 (Cheating and dishonestly inducing delivery of property) and Section 319 (Cheating by personation) are directly applicable.
• Information Technology Act, 2000: Section 66D (Punishment for cheating by personation by using computer resource) is relevant for online scams.
• Prevention of Corruption Act, 1988: If a public servant (like a police officer) demands a bribe for performing their official duty, they can be prosecuted under this Act.

If you are the complainant

As the person who has filed the complaint, you have an active role to play.

• Follow Up on the FIR: Regularly and formally follow up with the Investigating Officer on the progress of the investigation. This should be done through written applications or in-person visits, which should be documented.
• Submit All Evidence: Ensure you have submitted all possible evidence, such as bank statements, screenshots of the fake website or app, chat transcripts, and call records, to the IO.
• Do Not Pay Bribes: Paying a bribe to a police officer is illegal and makes you a party to the crime. The recovery of your money is a legal process, not a transaction. If an officer demands money, you can report them to senior officers or the anti-corruption bureau.
• Formal Advocate Agreement: If you hire an advocate, insist on a formal, written agreement (Vakalatnama and fee agreement) that clearly outlines the fee structure and scope of work.
• 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

As the victim of the crime, your primary goal is the recovery of your funds through legal means.

• Act Swiftly: The initial hours after the scam are critical. Reporting immediately helps the police trace and freeze the funds before they are withdrawn by the criminals.
• Preserve All Digital Footprints: Do not delete any messages, emails, or call logs related to the scam. These are vital pieces of evidence for the investigation.
• Court Process for Recovery: Understand that once money is frozen in a bank account, it can only be released through a court order. Your advocate will need to file an application in the appropriate court under the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) for the release of the case property (your money).
• 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 action in cyber fraud cases involves several stages. The IO’s primary duty is to register the FIR, collect evidence, trace the money trail, and identify the culprits. Freezing bank accounts is a standard and crucial part of this process. However, the demand for money for performing this duty is illegal. It is an act of corruption. The police are legally bound to investigate a cognizable offence like this, and the recovery of stolen money is part of that duty. The release of the money to the victim is ultimately decided by a court, not by the police officer’s discretion.

FAQs people normally have

Do I have to pay the police to get my money back?
Absolutely not. A police officer demanding money to perform their duty is asking for a bribe. This is illegal under the Prevention of Corruption Act. You should never pay such a demand.

Is a 15% advocate fee normal for such cases?
Advocate fees can be structured in various ways, including a flat fee, an hourly rate, or a contingency fee (a percentage of the recovered amount). A contingency fee is legal, but it must be reasonable and documented in a formal agreement signed by both you and the advocate. 15% can be considered high or reasonable depending on the complexity of the case. You have the right to negotiate the fee and consult other advocates to compare charges.

How do I get my money released from the frozen accounts?
Your advocate will file an application before the Magistrate’s court that has jurisdiction over the case. This application, often called a “superdari” application, requests the court to release the frozen funds to you, the rightful owner. You will have to prove the money belongs to you using bank statements and other evidence. The court will then pass an order directing the bank to release the amount.

What evidence is required?

To build a strong case and facilitate the recovery of your money, you will need to provide:

• Bank account statements showing the debit of the scammed amount.
• Screenshots of the fraudulent website, application, or advertisements.
• Complete chat history (e.g., WhatsApp, Telegram) with the scammers.
• Transaction IDs, UTR numbers, and details of the accounts where the money was sent.
• Any fake documents, like a fake SEBI certificate, provided by the scammers.
• Mobile numbers and any other contact details of the perpetrators.

How long will the investigation take?

The duration of a cybercrime investigation can vary significantly. It depends on factors like the complexity of the case, the number of accused, whether the criminals are in a different state, and the cooperation from banks and other intermediaries. The subsequent court process to release the funds can also take a few months. Patience and persistent follow-up through the proper legal channels are key.

Advocate Sudhir Rao, Supreme Court of India