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

In mid-July 2024, Mr. Rohan Mehta, a resident of Pune, received a startling letter from the Cyber Crime Cell. It was a formal notice under Section 35 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, directing him to appear before the Investigating Officer. The notice referenced an FIR filed under Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023, and Sections 43 and 66(D) of the Information Technology Act, 2000. The issue stemmed from a Peer-to-Peer (P2P) transaction of ₹35,000 that Rohan had conducted on a crypto platform called ‘DigiTrade’ back in 2023. The police informed him that his bank account had received this amount as part of a larger, elaborate scam amounting to over ₹30 lakhs. They were now pressuring him to “refund” the ₹35,000 to aid in the recovery process for the original complainant. Rohan was in a state of shock; he had all the proof for his legitimate transaction, including the DigiTrade transaction history and bank statements showing the name of the person he traded with. Confused and worried, he began searching for answers on how to handle this unexpected legal complication.

Advice in such cases 💡

Receiving a police notice can be intimidating, especially when it concerns a legitimate transaction that has been unknowingly linked to a crime. It is crucial not to panic. These situations arise from “money muling,” where criminals use unsuspecting individuals’ bank accounts to layer and launder illicit funds. Your primary goal is to prove your bona fides and the legitimacy of your transaction. Do not immediately refund any money, as this could be misconstrued as an admission of guilt. Instead, follow a structured legal approach to protect your rights and assets.

Applicable Sections of Law ⚖️

Understanding the laws cited in the notice is the first step. Here’s a brief overview:

• Section 35 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023: This section (equivalent to the old Section 41A of CrPC) mandates the police to issue a notice of appearance to a person against whom a reasonable complaint has been made or credible information has been received. It is a notice for inquiry, not an arrest warrant. Compliance with the notice generally protects you from arrest.
• Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section deals with cheating. It covers acts of deceiving someone to deliver any property or consent to the retention of any property, which includes money. This is what the original victim has likely invoked against the scammer.
• Sections 43 and 66(D) of the Information Technology Act, 2000: Section 43 pertains to damages to a computer or computer system, while Section 66(D) specifically punishes cheating by personation using a computer resource. These are invoked because the crime was executed online.

If you are the complainant 🗣️

If you are the original victim who lost a large sum (like the ₹30 lakhs in this scenario), your path involves:

• Immediately filing a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) or at the nearest Cyber Crime police station.
• Providing the police with all evidence of the fraud, including transaction details, fraudulent communications, and website/app information.
• The police will then file an FIR and begin tracing the money trail. This trail often leads through multiple bank accounts of individuals who, like Rohan, were involved in unrelated P2P transactions.
• Your objective is the recovery of your funds, and the police investigation aims to identify every account where the money was transferred.

If you are the victim 😟

If you are in Rohan’s position and have received a notice for a transaction you believe was legitimate, you are essentially a collateral victim in the investigation. Here’s your action plan:

• Do Not Ignore the Notice: Ignoring a notice under Section 35 BNSS can lead to the police obtaining a warrant for your arrest.
• Consult a Lawyer: Immediately seek advice from a lawyer specializing in cybercrime and criminal law. They can guide you through the process and represent you.

–Gather All Evidence: Collect every piece of documentation related to the transaction. This is your most critical task.

• Prepare a Formal Reply: With your lawyer’s help, draft a detailed, written reply to the notice, explaining your side of the story and attaching all supporting evidence.
• Cooperate with the Investigation: Appear before the Investigating Officer (IO) on the specified date, preferably with your lawyer. Answer their questions truthfully, but avoid making any statements that could incriminate you. Stick to the facts of your transaction.
• Do Not Refund the Money: Do not give in to police pressure to refund the money. Explain that you conducted a legitimate P2P trade for goods/services (in this case, cryptocurrency) and are not liable for the funds’ criminal origins, of which you had no knowledge.

How the police behave in such cases 👮

The police are often under immense pressure to show results, which includes recovering stolen funds. In complex cyber frauds, they trace the money to the last recipient and often try to “settle” the matter by asking them to return the amount. They might use tactics like threatening to freeze your bank account, seizing your devices, or even threatening arrest. Remember, a Section 35 notice is for inquiry. As long as you cooperate and have strong evidence of your legitimate transaction, your legal standing is firm. A lawyer’s presence can help balance the power dynamic during interactions with the police.

FAQs people normally have 🤔

Will I be arrested if I go to the police station?
Not necessarily. A Section 35 BNSS notice means you are required for inquiry. If you cooperate and comply with the terms of the notice, the police cannot arrest you unless they have sufficient evidence to justify it, which is unlikely if you are a bona fide trader.

Should I just refund the money to close the case?
No. Refunding the money without a legal order can be seen as an admission of wrongdoing. You provided a service (selling crypto) in good faith. You are not responsible for the buyer’s source of funds. Let the legal process unfold.

Why am I involved if my transaction was legitimate?
You are involved because your account is a link in the money trail. Scammers use P2P platforms to launder money by paying for crypto from their fraud-linked accounts, thus passing the tainted money to the seller.

What evidence is required? 📄

To prove your innocence, you must compile a comprehensive evidence file. This should include:

• A copy of the police notice you received.
• Your bank account statement showing the credit of the disputed amount.
• The complete transaction history from the crypto exchange (e.g., DigiTrade), showing the P2P order details, timestamp, transaction ID, and the counter-party’s username.
• Your KYC (Know Your Customer) details submitted to the crypto exchange.
• Any chat logs or communication records with the counter-party on the P2P platform.
• A clear, written statement detailing the sequence of events from your perspective.

How long will the investigation take? ⏳

Cybercrime investigations, especially those involving multiple jurisdictions and layered transactions, can be lengthy. It may take several months to over a year for the police to file a final report (chargesheet). During this period, it’s essential to stay in touch with your lawyer and respond to any further police inquiries promptly. Your bank account may be frozen temporarily during the investigation, and your lawyer can assist in filing an application in court to have it de-frozen.

Advocate Sudhir Rao, Supreme Court of India