Mr. Rohan Mehra, a software developer from the city of Anandpur, recently experienced a nightmare. He received a barrage of calls and messages from a company named ‘SwiftCash Finance’ regarding an overdue personal loan of Rs. 75,000. Rohan was baffled, as he had never applied for any such loan. Upon checking his credit report, he was horrified to see the loan listed against his name, which had severely damaged his credit score. It became clear that his PAN card and other identity details had been stolen and used by fraudsters to secure a loan through a digital lending app. He was now facing harassment from recovery agents for a loan he never took.

Advice in such cases

• Immediately gather all communications you have received from the lender and recovery agents.
• Obtain a copy of your latest credit report from all major credit bureaus to identify the fraudulent entry.
• File a formal complaint with the lending institution, stating that the loan is fraudulent and a result of identity theft.
• Do not make any payment to the lender or recovery agents.
• File a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in) and also file a written complaint at your nearest police station.
• 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

In cases of PAN card fraud and identity theft for financial gain, several provisions of Indian law can be invoked, primarily under the new criminal laws:

• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section deals with cheating. When fraudsters use your PAN card to obtain a loan, they are dishonestly inducing the financial institution to deliver property (the loan amount), which constitutes cheating.
• Section 335 of the Bharatiya Nyaya Sanhita, 2023 (BNS): This section pertains to forgery. Creating false documents or using genuine documents fraudulently, such as using your PAN card to forge a loan application, is a punishable offense.
• Section 66C of the Information Technology Act, 2000: This section specifically punishes identity theft. Anyone who fraudulently or dishonestly makes use of the electronic signature, password, or any other unique identification feature of any other person shall be punished.
• Section 66D of the Information Technology Act, 2000: This section deals with punishment for cheating by personation by using a computer resource. Since most of these frauds are committed using digital apps and online platforms, this section is highly relevant.

If you are the complainant

• Your first step should be to draft a comprehensive written complaint detailing the entire sequence of events. Mention how and when you discovered the fraud.
• Attach all relevant evidence, such as screenshots of messages from recovery agents, a copy of your credit report highlighting the fraudulent loan, and any communication with the lending company.
• Submit this complaint to the Station House Officer (SHO) of your local police station or the Cyber Crime Cell. Ensure you get a receiving copy of your complaint.
• Simultaneously, file a complaint online at the National Cyber Crime Reporting Portal.
• 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

• Your priority is damage control. Inform your bank and other financial institutions about the identity theft to secure your other accounts.
• Formally write to the credit bureaus (like CIBIL, Experian, etc.) to report the fraudulent account and request its removal from your credit history. Provide a copy of the police complaint.
• Keep a meticulous record of every phone call, email, and letter related to the case. Note down the time, date, and name of the person you spoke with.
• Do not be intimidated by recovery agents. Inform them calmly that a police complaint has been filed for fraud and direct all their queries to the investigating officer.
• 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 response can vary. Initially, some officers at a local police station might be hesitant and may try to direct you to a specialized Cyber Crime Cell, citing jurisdictional or technical complexity. However, under the provisions of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), you have the right to file a Zero FIR at any police station, irrespective of jurisdiction. The police are obligated to register your complaint and later transfer it to the appropriate station. Having a lawyer accompany you or send a legal notice can often make the police take the matter more seriously and expedite the registration of an FIR.

FAQs people normally have

• Can the lending company hold me responsible for repaying the fraudulent loan?
  No. Once you have filed a police complaint and can establish that you are a victim of identity theft, you cannot be held liable for the repayment. The onus is on the lender to prove they followed proper due diligence.
• Will this fraudulent loan permanently damage my credit score?
  It will damage your score initially. However, once the police investigation concludes and the fraud is proven, you can use the FIR and investigation report to get the fraudulent entry removed from your credit report, which will restore your score.
• What if the police refuse to file an FIR?
  If the police refuse to register an FIR, you can send a written complaint via registered post to the Superintendent of Police (SP) or a higher-ranking officer. If there is still no action, your lawyer can file an application under Section 175(3) of the BNSS before the Magistrate to direct the police to register the FIR and investigate.

What evidence is required?

Strong evidence is crucial to prove your case. You should collect:

• A copy of your credit report showing the fraudulent loan.
• All emails, SMS, and WhatsApp messages from the lender and recovery agents.
• A copy of the police complaint (FIR).
• Any identity documents (like Aadhaar, Passport) that can help prove your identity and signature, which will likely not match the forged documents.
• Bank statements to show that you never received the loan amount in any of your accounts.

How long will the investigation take?

Cybercrime investigations can be complex and time-consuming. It may take anywhere from a few months to over a year. The duration depends on factors like the police’s efficiency, the cooperation of the lending institution in providing details of the fraudster, and the digital trail left by the criminals. Regular follow-ups with the investigating officer, often through your lawyer, are essential to ensure the case progresses.

Advocate Sudhir Rao, Supreme Court of India