One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Rohan Gupta, a young aspiring pilot from Lucknow, had been preparing for his NIOS Mathematics board exam as part of his eligibility requirements for a commercial pilot licence. In early February 2025, he paid approximately ₹1,00,000 to a well-known aviation training institute operating out of Andheri West, Mumbai — let’s refer to it here as AviationEdge Academy. The payment was made via NEFT transfer. The agreement was clear: if Rohan scored below 60%, the institute would refund the full amount. Rohan kept every WhatsApp message, every payment screenshot, and every voice recording confirming this arrangement.

Results came in mid-April 2025. He had failed. He contacted the institute immediately, and they stonewalled him — first citing some vague internal policy, then stopping all responses altogether. He wrote formal emails. He visited their office. Nothing moved. That’s when a friend pointed him toward Advocate Sudhir Rao’s office. He’d already consulted a local general practitioner advocate in Lucknow who sent a basic demand notice, but it went unacknowledged. This matter needed someone who understood both consumer law and criminal cheating provisions together, not just one in isolation.

The right procedural approach changed everything. A Consumer Forum complaint backed by a simultaneous criminal complaint under Section 318(4) BNS for cheating shifted the institute’s posture within weeks. The recorded evidence and the written refund clause were decisive. Full refund. Compensation for mental harassment. No drawn-out trial. A focused, domain-aware strategy made all the difference — and that’s really the lesson here.

Advice in Such Cases

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 to 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.

Preserve all evidence immediately: Don’t delete anything. Not the chats, not the call recordings, not the payment receipts. Store them in at least two places — your phone and a cloud backup. Evidence in coaching fraud cases is almost entirely digital, and courts treat it as primary material once authenticated under the Bharatiya Sakshya Adhiniyam, 2023. Frankly, this one step alone can make or break your case.

Send a formal legal notice first: Before filing any complaint, a lawyer-drafted notice under Section 8 of the Specific Relief Act, 1963 read with the Indian Contract Act, 1872 gives the opposite party one final opportunity to refund. It also creates a paper trail that strengthens your Consumer Forum complaint significantly. And here’s the thing — sometimes this notice alone is enough to get the money back without going further.

File a Consumer Complaint in parallel: This is a separate, powerful remedy. The District Consumer Disputes Redressal Commission can award refund, compensation, and litigation costs — often faster than a civil suit. This type of matter sits at the intersection of consumer law, contract law, and criminal cheating, and an advocate who regularly handles such combined matters will see procedural angles that a general practitioner might easily miss.

Applicable Sections of Law

This case has a mixed character. Primarily a consumer and contract matter, yes, but criminal cheating provisions apply because the promise was made dishonestly or was broken with intent to wrongfully retain money. Both tracks matter here.

• Section 318(4), Bharatiya Nyaya Sanhita (BNS), 2023: Cheating and dishonestly inducing delivery of property — directly applicable where a fraudulent promise induced the payment.
• Section 3 and Section 11, Indian Contract Act, 1872: The refund agreement constitutes a valid conditional contract; breach entitles the aggrieved party to damages and recovery.
• Section 2(1)(g) and Section 2(1)(o), Consumer Protection Act, 2019: Deficiency in service and unfair trade practice — coaching institutes are “service providers” under this Act.
• Section 38, Consumer Protection Act, 2019: Procedure for filing complaint before the District Consumer Disputes Redressal Commission for claims up to ₹50 lakh.

Punishment and Penalties

Under Section 318(4) BNS, cheating that causes the victim to deliver property or money carries imprisonment of up to three years, or a fine, or both. There’s no prescribed minimum imprisonment, which gives courts discretion. The offence is cognizable (police can arrest without a warrant), non-bailable at the Sessions level when the amount is substantial, and compoundable with the permission of the court — meaning a settlement between parties can lead to the case being closed. Fines can extend to amounts the court deems fit, often matching or exceeding the defrauded sum.

Jurisdiction — Where to File the Case

Now, before you act, get your jurisdiction right. For the consumer complaint, jurisdiction lies with the District Consumer Disputes Redressal Commission at the place where the service was agreed to be provided, or where the payment was made — in this scenario, that could be either Lucknow (the complainant’s city) or Mumbai (where the institute operates), giving the complainant a choice. For the criminal complaint, the FIR must be filed at the police station within whose territorial limits the cheating occurred or where the money was received. For civil money recovery, the court at the place of contract performance or defendant’s residence has jurisdiction under Section 20, Code of Civil Procedure, 1908.

What if Police Refuse to File FIR?

Refusal to register an FIR in a cognizable case is unfortunately common in fraud matters involving private institutions. Here’s what you can do:

• Submit a written complaint to the Superintendent of Police under Section 173(4), Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, requesting direction to register the FIR.
• File a private complaint directly before the Judicial Magistrate under Section 175(3) BNSS — the Magistrate can direct police to investigate.
• Approach the High Court through a writ petition under Article 226 of the Constitution as a last resort, citing Lalita Kumari v. Government of UP, 2014, which mandates FIR registration in cognizable offences.
• Maintain a written record of every refusal attempt — dates, officer names, and reasons given — as this strengthens your Magistrate complaint.

Rights of the Accused

If the institute’s representative or owner is arrested or summoned, they retain the following rights under Indian law:

• Right against self-incrimination under Article 20(3) of the Constitution — no person can be compelled to be a witness against themselves.
• Right to legal representation under Article 22 — they must be informed of this right at the time of arrest.
• Right to be produced before a Magistrate within 24 hours of arrest, as mandated under Article 22(2) and Section 57 BNSS.
• Right to a copy of the FIR and to be clearly informed of the grounds of arrest.
• Right to apply for bail before the appropriate court without undue delay.

Bail Provisions

Section 318(4) BNS cheating is classified as non-bailable in many circumstances, particularly where the amount is significant. An accused may seek anticipatory bail under Section 482 BNSS before arrest — advisable the moment they sense an FIR is imminent. Don’t wait. Once arrested, regular bail under Section 480 or Section 483 BNSS can be applied for before the Magistrate or Sessions Court. Typical conditions include surrendering the passport, not leaving the jurisdiction without court permission, and cooperating with the investigation. In cheating cases, courts often impose a condition to deposit the disputed amount as a precondition for bail.

Quashing of FIR / Case

The accused institute may approach the High Court under Section 528 BNSS (which replaces Section 482 CrPC) to quash the FIR. Grounds typically argued include: no prima facie offence made out, the dispute is purely civil in nature, or a compromise has been reached between the parties. In B.S. Joshi v. State of Haryana, 2003, the Supreme Court held that quashing is appropriate where continuation of proceedings would be an abuse of process. But where there is clear digital evidence of a fraudulent promise and deliberate withholding of money, quashing petitions tend to fail unless full settlement is offered simultaneously. The evidence quality is everything.

If You Are the Victim

• Secure all digital evidence immediately — payment receipts, bank statements, WhatsApp conversations, call recordings, and any written or verbal refund promise.
• Send a formal demand notice through a lawyer within 30 days of the refund being refused — this strengthens both consumer and criminal proceedings.
• File a complaint with the District Consumer Disputes Redressal Commission under the Consumer Protection Act, 2019 for refund, compensation, and litigation costs.
• Simultaneously, or where the institute’s conduct indicates clear dishonest intent, file a criminal complaint for cheating under Section 318(4) BNS at the appropriate police station.
• Do not accept partial refunds or verbal assurances without a written settlement agreement reviewed by your advocate.

Documents You Must Keep Ready

• Aadhaar card and PAN card (identity proof)
• Original fee payment receipts or bank NEFT/UPI transaction screenshots
• Bank account statement showing the debit entry
• Written agreement, brochure, or enrollment form containing the refund clause
• WhatsApp chats, emails, and SMS threads confirming the promise and the subsequent refusal
• Call recordings (saved and backed up)
• Examination result certificate showing the score obtained
• Any prior demand letters or emails sent to the institute and their responses (or silence)

What Evidence Is Required?

• Primary evidence: Original written agreement or enrollment form mentioning the refund condition — this is the most decisive document.
• Digital evidence: WhatsApp messages, emails, and call recordings authenticated under Section 63, Bharatiya Sakshya Adhiniyam, 2023; courts regularly admit these once certified.
• Payment proof: Bank statement, UPI or NEFT receipt showing the exact amount transferred and the beneficiary details.
• Result document: Official NIOS mark sheet proving the score fell below the stipulated threshold.
• Witness evidence: Any third party present during conversations where the refund promise was made.
• Institute’s own promotional material: If the refund guarantee was advertised, that brochure or webpage screenshot is strong secondary evidence.

How the Police Behave in Such Cases

Make no mistake — police attitudes in coaching or training institute fraud cases are inconsistent. Many stations initially treat them as “civil disputes” and resist registering an FIR. Officers may ask you to first approach a civil court. This is legally incorrect where dishonest intent is provable, as confirmed in Lalita Kumari v. Government of UP, 2014. Once you present strong digital evidence — recordings, written refund clauses, bank proof — and mention the Magistrate complaint route, the stance usually shifts. Having a lawyer accompany you or write directly to the SP dramatically improves the chances of timely FIR registration.

Timeline of Legal Process

• Week 1-2: Consult advocate, gather evidence, send legal demand notice to the institute.
• Week 3-4: File Consumer Complaint before District Commission and/or file criminal complaint/FIR.
• Month 1-2: Police investigation begins (if FIR registered); Consumer Commission issues notice to opposite party.
• Month 2-4: Written statement filed by opposite party before Consumer Commission; police may call accused for questioning.
• Month 3-6: Evidence stage before Consumer Commission; chargesheet filing in criminal matter (60-90 day window under BNSS).
• Month 6-12: Arguments and order from Consumer Commission (many straightforward refund cases conclude within 6-9 months at District level).
• Post-order: Execution of Consumer Commission order for payment; criminal trial continues separately if not compounded.
• Appeal: State Consumer Commission, then National Commission, then Supreme Court — each adds 6-18 months if contested.

How Long Will the Investigation Take?

Under BNSS, police are required to file a chargesheet within 60 days for offences triable by a Magistrate (which Section 318(4) BNS generally is), extendable to 90 days in some circumstances. In practice, cheating cases involving digital evidence and clear documentation often move faster than physical cases. If the accused is cooperative and evidence is digital, investigation can conclude in 45 to 75 days. Delays typically arise from station-level inaction, which is why consistent follow-up and proper legal pressure from the outset aren’t optional — they’re necessary.

Advocate Sudhir Rao, Supreme Court of India