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

A young man, Rohan, recently found himself in a devastating situation. At the age of 17, he was duped out of ₹3.8 lakh in what he believed was an official bank auction conducted by the ‘National Bank of India’. A fraudster, Mr. Verma, posing as an authorised auctioneer, convinced Rohan to transfer the amount for a Maruti Swift car. It was later discovered that Mr. Verma and his associates used Rohan’s money to get their seized vehicle released, only to sell it to another unsuspecting buyer. Rohan never received the car he paid for. To add insult to injury, they returned a mere ₹40,000 and issued a cheque for the remaining balance, which subsequently bounced.

Despite approaching multiple police stations in his city of Shantinagar and the neighbouring district of Rampur, Rohan’s pleas went unheard. No First Information Report (FIR) was registered, and he received no assistance. Now 18, he is burdened with significant debt and emotional distress, while the perpetrators continue their fraudulent activities without fear. This story highlights a common yet distressing scenario where victims of financial fraud struggle to get justice.

Advice in such cases

• Preserve all evidence meticulously. This includes bank transaction records, screenshots of online advertisements or conversations, call logs, any documents provided by the fraudster (even if fake), and details of the bounced cheque.
• Do not engage further with the fraudsters. They may try to lure you with small partial payments or further promises to delay legal action. Cease all communication.
• File a formal written complaint at the local police station. If they refuse to register an FIR, send the complaint to a senior police official, like the Superintendent of Police, via registered post.
• Simultaneously, you can file a complaint on the National Cyber Crime Reporting Portal (cybercrime.gov.in), as many such frauds have an online component.
• 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

Under the new Indian laws, several provisions of the Bharatiya Nyaya Sanhita, 2023 (BNS) can be invoked in such cases:

• Section 318 of BNS (Cheating and dishonestly inducing delivery of property): This is the primary section applicable when someone is dishonestly induced to deliver any property (in this case, money) through deception. The act of making false promises about the car auction falls squarely under this.
• Section 316 of BNS (Criminal Breach of Trust): If the money was entrusted for a specific purpose (buying the car) and was instead misappropriated (used to release their own car and then sell it to someone else), it constitutes a criminal breach of trust.
• Section 335 of BNS (Forgery for purpose of cheating): The act of providing a fake or bounced cheque can attract charges of forgery, especially when it’s part of a larger scheme to cheat.

The procedural aspects are governed by the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).

If you are the complainant

• Draft a detailed complaint mentioning the entire sequence of events with dates, amounts, and names of the accused. Attach copies of all evidence.
• Submit this complaint to the officer in charge of the police station having jurisdiction over the place where the transaction occurred or where you reside.
• Insist on receiving a receipt or a diary number for your complaint. If they register an FIR under Section 173 of the BNSS, get a free copy of it.
• If the police are unresponsive, your lawyer can file a private complaint before the Magistrate under Section 175(3) of the BNSS, requesting the court to direct the police to register an FIR and investigate.
• 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 primary role is to act swiftly. The more you delay, the harder it becomes to trace the money and the accused.
• Organize your documents and create a clear timeline of events. This will be crucial for your complaint and for your lawyer.
• Be prepared for a potentially long process. The legal system can be slow, but persistence is key.
• Follow up regularly, but politely, with the police regarding the status of your complaint or investigation.
• 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

It is an unfortunate reality that police can sometimes be hesitant to register FIRs in financial fraud cases. They might dismiss it as a ‘civil dispute’ (a mere breach of contract) rather than a criminal offence. This can be due to a high workload, jurisdictional confusion, or a lack of understanding of the nuances of white-collar crime. However, the elements of deception and dishonest intent from the very beginning make such cases clearly criminal. A well-drafted complaint highlighting these criminal elements, often prepared with a lawyer’s help, can pressure the police to act.

FAQs people normally have

What evidence is required?

• Bank account statements showing the transfer of money.
• Screenshots of WhatsApp chats, emails, or any other communication with the accused.
• The bounced cheque and the bank’s return memo stating the reason for dishonour.
• Any advertisement or online post about the fake auction.
• Call records and the mobile numbers of the accused.
• Contact details of any witnesses, if available.

How long will the investigation take?

The duration of a police investigation varies significantly. For complex financial frauds involving multiple people or locations, it can take several months to a year or more. The process involves gathering evidence, recording statements, tracing the money trail, and apprehending the accused. The timeline depends on the complexity of the case, the cooperation of banks and other institutions, and the efficiency of the investigating agency.

Advocate Sudhir Rao, Supreme Court of India