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 was exploring loan options on X.app, a digital lending platform. He completed the KYC verification process but decided against proceeding with the loan due to unfavorable terms and conditions. Several days later, Mr.X discovered that Rs. 900 had been credited to his bank account via UPI from someone named Mr.Y, without his knowledge or consent. Soon after, Mr.X began receiving threatening calls from international numbers demanding repayment of Rs. 1,500. The callers claimed that Mr.X had taken a loan and must repay immediately with interest. Despite explaining that he never authorized any loan disbursement, the harassment continued with increasing frequency. The scammers used aggressive tactics, threatening legal action and defaming Mr.X’s reputation among his contacts. This forced loan scam exploited his earlier KYC submission to create a false lending relationship and extract money through intimidation.

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.

Never engage directly with the scammers or provide any additional personal information. Document all communication including call logs, messages, and transaction details. Report the matter immediately to your bank and request reversal of unauthorized transactions. File a complaint with the Cyber Crime Cell without delay as these cases require prompt action.

Applicable Sections of Law

Under the Bharatiya Nyaya Sanhita (BNS), Section 318 covers cheating and dishonestly inducing delivery of property. Section 351 addresses criminal intimidation through threats. Section 356 deals with defamation when scammers threaten to damage reputation. The Bharatiya Nagarik Suraksha Sanhita (BNSS) Section 173 provides procedures for filing complaints in cyber crimes. Additionally, provisions under the Information Technology Act 2000 apply to digital fraud and unauthorized electronic transactions involving UPI systems.

If You Are the Complainant

• File an FIR immediately at the nearest police station or online cyber crime portal
• Gather all evidence including transaction screenshots, call recordings, and message logs
• Contact your bank to freeze the account from which money was received
• Report to the National Cyber Crime Reporting Portal with complete details
• Maintain a detailed chronological record of all harassment incidents with dates and times

If You Are the Victim

• Never return money to scammers as this validates their fraudulent claims
• Block all unknown numbers and avoid answering calls from international numbers
• Inform family members about the situation to prevent them from being misled
• Change passwords for all financial apps and enable two-factor authentication
• Seek psychological support if harassment causes significant stress or anxiety

How the Police Behave in Such Cases

Police typically treat forced loan scams seriously due to their increasing prevalence. The Cyber Crime Cell usually registers cases promptly and coordinates with banking authorities for transaction reversals. Officers may request detailed statements and technical evidence. Investigation involves tracking UPI transaction trails and identifying fraudulent networks. Police often work with telecom providers to trace international call origins and block suspicious numbers used in harassment campaigns.

FAQs People Normally Have

Can I be legally forced to repay money I never requested? No, unsolicited money transfers do not create legal debt obligations.

Should I return the money to avoid harassment? Never return money as this encourages further fraudulent activity and validates their scam.

Will my credit score be affected? Legitimate credit bureaus do not record forced loan scams, but monitor your credit report regularly.

How long does investigation take? Cyber crime investigations typically take 2-6 months depending on case complexity and evidence quality.

What Evidence Is Required?

• Bank statements showing unauthorized credit transactions
• Screenshots of UPI notifications and transaction details
• Call logs showing harassment from unknown numbers
• Audio recordings of threatening conversations if legally permissible
• Screenshots of threatening text messages or WhatsApp chats
• KYC documents submitted to the lending platform
• Communication records with the fraudulent lending platform

How Long Will the Investigation Take?

Cyber crime investigations in forced loan scam cases typically require 3-6 months for completion. Initial FIR registration and preliminary inquiry take 2-4 weeks. Bank coordination for transaction reversal may occur within 30-45 days. Complex cases involving international numbers and multiple victims can extend investigation timelines. Court proceedings, if required, may add additional months to the resolution process.

Advocate Sudhir Rao, Supreme Court of India