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

Mr. Sameer was looking to move into a shared apartment in the city of Alipur with a few acquaintances. One of them, Mr. Rohan, was coordinating the search. Mr. Rohan and others identified a suitable property and informed Mr. Sameer. Mr. Sameer explicitly requested them to hold off on any payment until they could all discuss the terms in person. However, Mr. Rohan proceeded to pay the security deposit to the landlord without waiting for a final confirmation.

Later, under the impression that the decision was finalized by the group, Mr. Sameer transferred his share of the deposit to Mr. Rohan via a UPI payment. Unfortunately, due to some pressing personal reasons, Mr. Sameer had to withdraw from the plan. He informed the group of his decision before the scheduled move-in date and never occupied the apartment, not even for a single day.

The problem arose when Mr. Sameer requested the return of his money. Mr. Rohan and the other prospective flatmates have outright refused to refund the amount. To make matters worse, Mr. Rohan has blocked Mr. Sameer on all communication platforms, making it impossible to have a reasonable discussion. Mr. Sameer is now left in a lurch, possessing digital proof of the payment and the chat conversations but with no way to recover his funds.

Advice in such cases

• Gather and organize all evidence you have. This includes screenshots of chat conversations, UPI or bank transaction details, and any other communication that proves the transfer of money and the context behind it.
• Attempt to create a formal record of your demand. Send a polite but firm email or a message through another medium (if possible) clearly stating the facts and requesting the return of your money by a specific date.
• 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.
• Through your lawyer, send a formal Legal Notice to the person who owes you money. A legal notice is a formal communication that warns the recipient of potential legal action. This is often a very effective step and can lead to the resolution of the dispute without going to court.

Applicable Sections of Law

While this situation might seem like a simple civil dispute, certain actions can bring it into the ambit of criminal law under the Bharatiya Nyaya Sanhita (BNS), 2023.

• Section 314 of the BNS, 2023 (Dishonest misappropriation of property): If the person who received the money uses it for their own purpose dishonestly, it can be considered misappropriation. In this case, refusing to return the money and using it for their own share of the rent or deposit could fall under this section.
• Section 316 of the BNS, 2023 (Criminal breach of trust): You entrusted the money to the person for a specific purpose (your share of the deposit). By refusing to return it when that purpose was no longer valid (you not moving in), they may have committed a criminal breach of trust.
• Section 318 of the BNS, 2023 (Cheating): If it can be established that the person had a dishonest intention from the very beginning to not return the money under any circumstance, it could amount to cheating. The act of blocking communication after the dispute arose strengthens this argument.
• Civil Suit for Recovery of Money: This is the most direct legal route. You can file a summary suit or a regular civil suit in the appropriate court to recover the specific amount you are owed, along with interest and legal costs.

If you are the complainant

• The first step is to systematically arrange all your evidence. Create a timeline of events with corresponding proofs like chat screenshots and transaction records.
• 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.
• Your lawyer will likely advise sending a strongly worded Legal Notice first. This official document often prompts the other party to settle the matter to avoid legal proceedings.
• If the legal notice is ignored, your lawyer will guide you on the next steps, which could be filing a police complaint for a criminal offence or initiating a civil suit for the recovery of your money.

If you are the victim

• Stay calm and avoid getting into abusive or threatening conversations. All your communication should be formal and documented.
• Immediately take backups of all digital evidence. Cloud storage or emailing the evidence to yourself is a good practice.
• Do not make any further payments or commitments based on verbal assurances.
• 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.
• Follow the legal strategy advised by your lawyer, whether it is negotiation, sending a notice, or litigation.

How the police behave in such cases

Often, the police may initially perceive such disputes as being of a “civil nature.” They might be hesitant to file a First Information Report (FIR) for a criminal offence like cheating, suggesting that the parties should approach a civil court for resolution. This is because they need to be convinced of a “criminal intent” (mens rea) rather than just a simple monetary disagreement.

However, if your complaint, preferably drafted by a lawyer, clearly outlines the elements of dishonest intention, misappropriation, or breach of trust, the police are more likely to take cognizance. The procedure for investigation would then follow the guidelines laid out in the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023. A lawyer’s intervention can be crucial in ensuring the police register your complaint appropriately.

FAQs people normally have

Can I file a police complaint directly?
Yes, you can approach the police. However, its effectiveness depends on your ability to demonstrate fraudulent intent. It is often more effective to start with a legal notice.

Is a civil suit a better option?
A civil suit for the recovery of money is the most appropriate and direct legal remedy for such a situation. While it can be time-consuming, it is specifically designed to handle monetary disputes.

What if we never signed a formal agreement?
The absence of a written contract is not a deal-breaker. Your chat conversations, UPI transaction records, and the testimony of any witnesses can be used as strong evidence to prove the existence of an oral agreement and the subsequent transaction.

What evidence is required?

• Proof of payment, such as a UPI transaction ID, bank account statement, or a payment confirmation screenshot.
• The complete chat history (e.g., WhatsApp, Telegram) that establishes the context of the payment, the agreement, and the subsequent refusal to refund.
• Screenshots showing that you have been blocked, which can help establish malicious intent.
• A copy of the formal Legal Notice sent to the other party and the postal/courier receipt as proof of delivery.
• If there were any witnesses to your conversations or the agreement, their testimony could also be valuable.

How long will the investigation take?

If the police file an FIR, the investigation timeline under the BNSS, 2023, has specific guidelines, but it can still take several months depending on the complexity and workload. A civil suit’s duration is longer and can vary significantly from one court to another, potentially taking over a year to reach a conclusion. However, it is important to remember that a majority of such cases are resolved at the stage of the legal notice itself, making it the most time- and cost-effective first step.

Advocate Sudhir Rao, Supreme Court of India