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

Mr. Alok Sharma, an aspiring entrepreneur from Pune, decided to take his business online. He hired a company called “WebCrafters Solutions,” which he found online and claimed to be based in Lucknow, to develop an e-commerce website. After several discussions, a deal was finalized, and Mr. Sharma transferred an advance payment of ₹25,000 to the company’s bank account. Immediately after the payment was confirmed, all communication channels went silent. The company representatives blocked Mr. Sharma’s number and became unresponsive to his emails. He was left with no website and a significant financial loss. The primary legal question that arises in such a scenario is about jurisdiction—can Mr. Sharma, being in Pune, initiate legal proceedings against a company based in Lucknow?

Advice in such cases

Navigating such a situation requires a calm and strategic approach. Here are the steps you should consider:

• Gather All Evidence: Compile every piece of communication, including emails, chat messages (like WhatsApp), and call recordings. Secure the payment proof, such as bank transaction details, UPI transaction IDs, or screenshots of the payment confirmation. Also, save the company’s website details, contact information, and any digital advertisements you saw.
• Send a Formal Legal Notice: Before escalating the matter, have a lawyer send a formal legal notice to the company’s registered address (if available). This notice demands the completion of the service or a full refund within a specified period, failing which you will initiate legal action.
• File a Cyber Crime Complaint: Since the transaction and communication occurred online, this falls under the category of cybercrime. You can file a complaint on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or by calling the helpline number 1930.
• File a Consumer Complaint: If the service was for personal or business use, you can file a complaint with the Consumer Dispute Redressal Commission. The process is relatively straightforward and cost-effective for disputes of this nature.
• 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

This scenario involves multiple legal statutes, primarily focusing on cheating and breach of trust under the new criminal laws.

• Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section deals with cheating. If a person fraudulently or dishonestly induces another person to deliver any property, it constitutes the offence of cheating. In this case, the company induced Mr. Sharma to pay money with the dishonest intention of not providing the service.
• Section 316 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section addresses criminal breach of trust. When a person is entrusted with property and dishonestly misappropriates it, they commit a criminal breach of trust. The payment made to the company was an entrustment for a specific purpose (website development), which they misappropriated.
• The Information Technology Act, 2000: Specifically, Section 66D of the IT Act is relevant, which penalizes cheating by personation using a computer resource. If the company used a fake identity or misrepresented its credentials online, this section would apply.

If you are the complainant

If you find yourself in the position of the accused company, perhaps due to a misunderstanding or an internal issue, your approach should be proactive and transparent.

• Do Not Ignore Communication: If you receive a legal notice or a call from the police, address it immediately. Ignoring it will only worsen the situation and strengthen the case against you.
• Attempt to Resolve: If there has been a genuine failure to deliver the service, try to resolve the matter amicably with the client. Offer a refund or propose a new timeline for completion. Document this attempt at resolution.
• Preserve Your Side of the Story: Keep all records of communication and any internal issues that may have caused the delay or failure. This evidence will be crucial if the matter proceeds to court.
• 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, your primary goal is to seek justice and recover your losses. Time is of the essence.

• Act Immediately: The sooner you report the fraud, the higher the chances of tracing the digital and financial trail. Report the transaction to your bank to see if the payment can be stopped or flagged.
• File a Police Complaint (FIR): You can file an FIR at your local police station in the city where you reside and made the payment from (Pune, in this case). According to criminal law procedure and IT Act provisions, a part of the cause of action arose where you suffered the financial loss. The police can register a “Zero FIR” and transfer it to the concerned police station in the other state (Lucknow).
• Follow Up Diligently: Stay in regular contact with the investigating officer and provide any additional information or evidence they may require.
• 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 handling of inter-state cyber fraud can vary. Initially, a local police station might show reluctance to register an FIR, citing jurisdictional issues. However, you have the right to insist on a Zero FIR. Once registered, the investigation involves tracing IP addresses, mobile numbers, and bank account details. This often requires coordination between the police forces of two different states, which can be a slow process. The police will issue notices under the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 to banks and telecom companies to freeze accounts and obtain user details. Patience and persistent follow-up are key.

FAQs people normally have

Can I file the case in my own city?
Yes. For cybercrimes, the law allows you to file a complaint where the offence was committed or where its consequences were felt. Since you lost money from your bank account in your city, the police in your city have the jurisdiction to register the complaint.

Is this a civil or a criminal matter?
It has both criminal and civil aspects. The act of cheating is a criminal offence, leading to an FIR and potential imprisonment for the accused. The recovery of your money and compensation for the breach of contract is a civil remedy, which can be pursued through a consumer court or a civil court.

What evidence is required?

Strong evidence is the backbone of your case. You must collect and preserve:

• Transaction details: Bank statements, UPI transaction ID, screenshots of payment confirmation.
• Communication records: Complete chat history (WhatsApp, Messenger), emails, and call logs.
• Company information: Screenshots of the company’s website, social media profiles, and any advertisements.
• Agreement or Proposal: Any document or email outlining the scope of work and payment terms.

How long will the investigation take?

The duration of an investigation in an inter-state cyber fraud case is unpredictable. It can range from a few months to over a year. The timeline depends on factors like the complexity of the digital trail, the responsiveness of banks and tech companies, and the level of cooperation between the police departments of the involved states. Legal proceedings in court will take their own course after the investigation is complete and a chargesheet is filed.

Advocate Sudhir Rao, Supreme Court of India