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.

Mr. X, a 27-year-old professional, was relocating from City A to City B for work. Before leaving, he found Mr. Y as a replacement tenant for his rented apartment. Mr. Y paid Rs. X,XX,000 as security deposit directly to Mr. X, who then completed the handover process. Mr. X informed the property owner’s assistant about the transition and even mentioned it in their WhatsApp group that included the owner. However, Mr. X had never interacted directly with the property owner throughout his tenancy, dealing only with the assistant.

After Mr. X moved to City B, the property owner refused to acknowledge the tenant replacement arrangement. The owner claimed that Mr. X had fraudulently collected deposit money from Mr. Y without proper authorization, and demanded that Mr. X return his original deposit while also asking Mr. Y to pay a fresh deposit. This left both Mr. X and Mr. Y in a difficult financial situation, with the owner essentially trying to collect double deposits.

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.

Document all communications with the owner and assistant, including WhatsApp messages, emails, and call records. Gather evidence of the legitimate tenant replacement process and any prior instances where such arrangements were accepted. Consider sending a legal notice demanding proper acknowledgment of the replacement tenant and resolution of the deposit issue within a specified timeframe.

Applicable Sections of Law

This case primarily falls under cheating and criminal breach of trust provisions. Section 318 of BNS (cheating) applies when someone deceives another to deliver property dishonestly. Section 322 of BNS (criminal breach of trust) covers misappropriation of property entrusted to someone. Section 61 of BNSS allows for filing complaints in such fraud cases. Additionally, Section 3 of BNS (general explanations) provides the framework for establishing dishonest intentions in property-related disputes.

If You Are the Complainant

• File a detailed complaint with local police providing all documentary evidence of the legitimate tenant replacement process
• Submit copies of rental agreement, deposit receipts, and communication records with the property owner’s representative
• Provide witness statements from neighbors or others who can confirm the proper handover process
• Include evidence of financial loss suffered due to the owner’s refusal to acknowledge the arrangement
• Request investigation into the owner’s pattern of collecting multiple deposits from different tenants

If You Are the Victim

• Immediately gather all evidence of payments made and communications with both the previous tenant and property representatives
• File a complaint with consumer court if the rental arrangement involves commercial services
• Contact the previous tenant to coordinate evidence collection and potential joint legal action
• Document any harassment or pressure tactics used by the property owner to extract additional payments
• Seek interim protection from courts to prevent eviction while the dispute is resolved

How the Police Behave in Such Cases

Police typically treat these as civil disputes initially and may be reluctant to register FIRs. However, with proper documentation showing clear evidence of cheating or criminal breach of trust, they are more likely to take action. Officers usually investigate communication records, financial transactions, and witness statements. They may attempt mediation between parties before proceeding with formal charges, especially in property-related disputes involving substantial amounts.

FAQs People Normally Have

Can I legally transfer my tenancy to another person? Yes, with landlord consent, but the process must be transparent and documented.

What if the owner claims they never authorized the replacement? Evidence of communication with the owner’s assistant and group messages can establish authorization.

Is collecting deposit from replacement tenant legal? Yes, if done with proper disclosure and owner acknowledgment of the arrangement.

Can both tenants be held liable for the same deposit? No, the owner cannot demand double deposits for the same property period.

What Evidence Is Required?

• Original rental agreement and deposit receipts from both tenant transitions
• WhatsApp messages, emails, and communication records with owner’s assistant
• Bank transaction records showing deposit transfers and payments
• Witness statements from neighbors or others present during handover
• Property handover documents and condition reports
• Screenshots of group conversations mentioning the tenant replacement
• Any written acknowledgments or approvals from property representatives

How Long Will the Investigation Take?

Police investigations in such cases typically take 2-6 months depending on complexity and cooperation from parties. The timeline can extend if parties are in different cities or if additional financial records need verification. Court proceedings, if initiated, may take 1-2 years for final resolution, but interim orders for deposit protection can be obtained within weeks.

Advocate Sudhir Rao, Supreme Court of India