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

Three students, Rohan, Sameer, and Kunal, are facing a difficult situation with their former Paying Guest (PG) accommodation owner in Vidya Nagar Colony, Aadityapur. The owner, a Mr. Verma, is unlawfully withholding their security deposit. Each student had paid a deposit of ₹10,000, and the total amount of ₹30,000 is now being refused.

While Mr. Verma has refunded the deposits to other students who left, he is specifically targeting Rohan and his friends. When they requested their money back, he was not only rude but also threatened them, stating he would ensure they wouldn’t be able to find another PG in the vicinity. He has vaguely mentioned an unpaid electricity bill. The students have agreed to adjust this bill, which they estimate to be no more than ₹5,000, from the total security amount. Despite their peaceful tenancy, during which they endured frequent power and water supply issues without complaint, they are now being treated unfairly. This is a clear case of wrongful retention of funds and intimidation.

Advice in such cases

Disputes over security deposits are unfortunately common. The foundation of your rights lies in the rental agreement you signed. It is crucial to have all communications with the owner in writing, such as on WhatsApp or email, to create a record. If informal communication fails, the next step is to take legal action.

Applicable Sections of Law

While this is primarily a civil dispute governed by the Indian Contract Act, 1872, the owner’s actions can also attract criminal charges under the Bharatiya Nyaya Sanhita, 2023 (BNS).

• Section 316 of BNS (Criminal Breach of Trust): The security deposit is entrusted to the owner for a specific purpose. Dishonestly misappropriating it for his own use constitutes a criminal breach of trust.
• Section 318 of BNS (Cheating): If the owner had a dishonest intention from the outset to not refund the money, it can be considered cheating.
• Section 351 of BNS (Criminal Intimidation): The owner’s threat that he won’t let the students find another PG in the area amounts to criminal intimidation, which is a punishable offense.
• Consumer Protection Act, 2019: Providing housing/PG services falls under the definition of a “service.” A refusal to refund the security deposit without valid reason is a deficiency in service, and a complaint can be filed in the Consumer Disputes Redressal Commission.

If you are the complainant

When you are the one seeking a refund, you must act systematically to build a strong case.

• Gather all your documents. This includes the rental agreement, receipts or bank transaction records for the security deposit payment, and any chats or emails with the owner about the refund.
• The first formal step is to have a lawyer send a legal notice to the owner. This notice will detail your claim, demand the refund within a specific period (e.g., 15 days), and state that you will pursue legal action if the demand is not met.
• If the legal notice is ignored, you can file a complaint at the local police station, citing the relevant sections of the BNS for cheating, criminal breach of trust, and intimidation.
• Simultaneously, you can file a complaint with the District Consumer Commission for deficiency in service.
• 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 resolve in 7-10 days.

If you are the victim

As the victim of such harassment, your safety and evidence preservation are paramount.

• Avoid getting into heated arguments or physical altercations with the owner. Keep your distance and let your lawyer handle the communication.
• Document everything. After vacating the PG, send a final message to the owner confirming that you have left and handed over the keys. Take pictures and videos of the room to prove you did not cause any damage.
• If the owner’s threats make you feel unsafe, do not hesitate to report it to the police immediately. Your safety comes first.

How the police behave in such cases

Often, the police may initially perceive such matters as civil disputes and advise you to go to court. They might try to mediate and ask both parties to settle.

However, you must firmly and clearly explain the criminal aspects of the case—the cheating, the breach of trust, and especially the criminal intimidation. If you present a well-drafted complaint, preferably prepared by a lawyer, they are more likely to register a First Information Report (FIR). If the police at the station refuse to file an FIR, you have the right under Section 173(3) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) to send your written complaint by post to the Superintendent of Police (SP), who can then order an investigation.

FAQs people normally have

Can I file a police complaint for not getting my security deposit back?
Yes. While a simple non-payment is a civil issue, if it involves elements like cheating, misappropriation of funds (criminal breach of trust), or threats (criminal intimidation), it becomes a criminal case, and you can file a police complaint.

What if I don’t have a written rental agreement?
Even without a written agreement, your case is not lost. Your tenancy can be established through other evidence like proof of regular rent payments (bank statements, UPI history), WhatsApp chats with the owner, and witness testimony from other residents. A written agreement just makes the process easier.

What evidence is required?

To build a strong case for the recovery of your security deposit, you will need:

• The rental or PG agreement, if one exists.
• Proof of payment for the security deposit (e.g., bank transfer details, UPI transaction ID, a signed receipt).
• Records of communication with the owner regarding the deposit refund (WhatsApp chats, SMS, emails).
• A copy of the formal legal notice sent by your lawyer and the postal receipt proving it was delivered.
• Photographs or videos of the room’s condition at the time of vacating to counter any false claims of damage made by the owner.

How long will the investigation take?

The timeline can vary. A legal notice often resolves the issue within 15 to 30 days, as most people want to avoid legal trouble. If a police investigation is initiated, it can take a few weeks to a couple of months. A case filed in the Consumer Commission is relatively faster than a traditional civil suit and may be resolved in 6 to 12 months. A civil suit for the recovery of money is the longest route and can take over a year.

Advocate Sudhir Rao, Supreme Court of India