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

Ms. Anjali, a resident of Aaravpur, found herself in a frustrating situation. She had cancelled an order from a popular online retailer, “StyleSphere,” over a month ago. The company’s app and customer service representatives assured her that a refund was processed instantly. However, the amount never reflected in her account with “SecureTrust Bank.”

When she contacted SecureTrust Bank, they initiated a chargeback request. In response, StyleSphere incorrectly informed the bank that the goods and services had been delivered, causing the chargeback to fail. Now, StyleSphere directs her to the bank, and the bank points back to the merchant, leaving Ms. Anjali caught in a loop. Her complaint on the National Consumer Helpline was also closed by the company with the same unhelpful response. This scenario is increasingly common in the age of digital transactions, leaving consumers feeling helpless.

Advice in such cases

If you are facing a similar predicament, it is crucial to move from informal follow-ups to a structured, formal approach.

• Gather and organize all documentary evidence. This includes the original order invoice, cancellation confirmation email or screenshot, your bank statement showing the debit and the absence of the corresponding credit, and records of all communication with both the merchant and the bank.
• Draft a formal complaint letter or email. Send it to the official grievance redressal officers of both the merchant and the bank. Their contact details are usually available on their websites. Clearly state the facts, reference numbers, and attach all your evidence. Set a reasonable deadline (e.g., 15 days) for a resolution.
• If the bank does not resolve the issue within 30 days of your complaint, escalate the matter to the Reserve Bank of India’s Ombudsman Scheme for Digital Transactions. This is a powerful, free-of-cost mechanism for holding banks accountable.
• 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

Your rights in such a situation are protected under several Indian laws:

• The Consumer Protection Act, 2019: This is your primary shield. The actions of both the merchant (not ensuring refund credit, providing false information for chargeback) and the bank (improperly handling the chargeback) amount to a “deficiency in service.” The merchant’s conduct could also be termed an “unfair trade practice.” You can file a case in the appropriate Consumer Disputes Redressal Commission.
• RBI Regulations: Banks in India are strictly regulated by the Reserve Bank of India. RBI has laid down clear guidelines for customer service, grievance redressal, and the handling of electronic transactions and chargebacks. The bank’s failure to assist you is a violation of these regulatory duties.
• Bharatiya Nyaya Sanhita, 2023 (BNS): While primarily a civil matter, if it can be proven that the merchant had a dishonest intention from the outset and never intended to refund the money, it could potentially fall under the offence of cheating, as defined in Section 318 of the BNS. However, pursuing this path is more complex and the consumer court is the more direct remedy.

If you are the complainant

As the person who has been wronged and is filing the complaint, your strategy should be methodical.

• Maintain a detailed log of every action you take, including dates, times, and names of the people you speak with.
• After initial attempts, stop verbal communication. Rely on written channels like email or registered post for all further correspondence to create a solid paper trail.
• Through an advocate, send a formal Legal Notice to the registered offices of both the merchant and the bank. This is a final warning before initiating legal action and often results in a swift resolution as companies seek to avoid litigation.
• If the legal notice is ignored, proceed with filing a complaint before the appropriate consumer forum. The jurisdiction (District, State, or National) will depend on the total value of the goods and the compensation claimed.
• 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

It’s easy to feel overwhelmed when large corporations give you the runaround. Remember that the law provides a clear path for redressal.

• Do not be discouraged by the blame game. This is a standard tactic designed to exhaust you. Your persistence is key.
• Follow the escalation hierarchy. Do not jump steps. Go from customer care to the grievance officer, then to the nodal officer, and then to external bodies like the RBI Ombudsman or the Consumer Commission.
• Consider using social media as a tool for escalation. A public post on platforms like X (formerly Twitter), tagging the official handles of the company and the bank, can sometimes get the attention of their social media teams and expedite a response. Keep the tone professional and factual.
• 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

Approaching the police for such matters is generally not the most effective first step. This is because the dispute is primarily considered civil or commercial in nature, not criminal. The police are likely to view it as a case of “deficiency in service” rather than a crime like “cheating.” They will almost certainly advise you to approach the consumer court. While you can submit a written complaint, they may be reluctant to file a First Information Report (FIR) without clear evidence of criminal intent to defraud on a larger scale. Under the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), while police must register FIRs for cognizable offences, they often exercise discretion in classifying financial disputes as non-cognizable or civil.

FAQs people normally have

• Can I file a police complaint for a non-refund?

  You can, but it is unlikely to be registered as an FIR unless there is strong evidence of systematic fraud. The police will most likely direct you to the consumer courts, which are specifically designed to handle such disputes.

• Is it expensive to file a case in the Consumer Commission?

  No. The court fees are nominal and are based on the value of your claim. The process is designed to be accessible to the common person.

• Do I need a lawyer to file a consumer complaint?

  While you can represent yourself in the Consumer Commission, it is highly recommended to hire a lawyer. An experienced advocate can draft a legally sound complaint, present your arguments effectively, and navigate the procedures, significantly increasing your chances of a favourable and speedy outcome.

What evidence is required?

A strong case is built on strong evidence. Ensure you have the following:

• The product order confirmation and payment invoice.
• The cancellation request confirmation (email, app screenshot, etc.).
• Your complete bank statement for the relevant period, clearly showing the money was debited but never credited back.
• A complete record of your communication with the merchant and the bank, including emails, chat transcripts, and call logs if possible.
• A copy of the complaint filed on any consumer grievance portal and the response from the company.
• A copy of the legal notice sent to the parties, along with the postal receipts as proof of delivery.

How long will the investigation take?

The timeline for resolution varies depending on the path you take. A complaint to the RBI Ombudsman is typically resolved within 4 to 8 weeks. A case filed in the Consumer Disputes Redressal Commission is intended to be decided within 3 to 5 months as per the Act, but due to procedural delays and caseloads, it can realistically take anywhere from 6 months to over a year. A well-drafted legal notice can often resolve the matter within 15-30 days, without needing to go to court.

Advocate Sudhir Rao, Supreme Court of India