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

A gentleman, Mr. Gupta, was introduced to an individual, Mr. Verma, through a mutual acquaintance. Mr. Verma solicited funds from Mr. Gupta, promising guaranteed high returns from a special investment fund. Trusting the proposition, Mr. Gupta initially transferred ₹1.5 lakh. A few days later, Mr. Verma contacted him again, pressuring him to invest an additional ₹75,000 to manage supposed market fluctuations. After persistent calls, Mr. Gupta relented and transferred the additional amount.

It has now been several months, and Mr. Gupta has not received any returns or his principal amount back. Whenever he contacts Mr. Verma, he is met with excuses and requests to wait longer. Meanwhile, Mr. Gupta has discovered that Mr. Verma is leading a lavish lifestyle that is inconsistent with his stated monthly salary of ₹30,000. He has reportedly purchased a 2BHK flat in the city of Amanpur for approximately ₹1.5 crore, gold worth over ₹12 lakh, a motorcycle valued at ₹4 lakh, and a high-end tablet worth ₹1.5 lakh. It is also alleged that he does not file income tax returns, suggesting his wealth is from undisclosed sources.

Mr. Gupta possesses Mr. Verma’s location and bank details, but he fears that Mr. Verma might abscond. He also suspects that there may be numerous other individuals who have been similarly defrauded.

Advice in such cases

• Gather all evidence. Systematically collect all bank statements, transaction receipts, screenshots of chats (WhatsApp, SMS), emails, and any call recordings related to the transaction and promises made.
• File a police complaint. Immediately approach the local police station or the Economic Offences Wing (EOW) to file a formal complaint detailing the entire incident.
• 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
• Consider a civil suit. Alongside the criminal complaint, you can file a civil suit for the recovery of your money. This can run parallel to the criminal proceedings.

Applicable Sections of Law

The actions described prima facie constitute criminal offenses under the Bharatiya Nyaya Sanhita, 2023 (BNS). The key applicable sections are:

• Section 318 of the Bharatiya Nyaya Sanhita, 2023 (Cheating): This section applies when a person fraudulently or dishonestly induces another person to deliver any property. In this case, Mr. Verma’s promise of guaranteed returns, which appears to have been false from the beginning, induced Mr. Gupta to part with his money.
• Section 316 of the Bharatiya Nyaya Sanhita, 2023 (Criminal Breach of Trust): If it can be established that the money was entrusted to Mr. Verma for a specific purpose (investment) and he dishonestly misappropriated it for his personal use (buying a flat, gold, etc.), this section would be applicable.

If you are the complainant

• Draft a detailed written complaint. Your complaint to the police should be comprehensive, chronological, and clear. Mention all facts, dates, amounts, and the promises made. Attach copies of all evidence.
• Ensure an FIR is registered. If the police are hesitant, you can approach a senior police officer. If an FIR is still not registered, you have the right to file a private complaint before the Magistrate under Section 223 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS).
• 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
• Cooperate with the investigation. Provide all necessary information and documents to the investigating officer to help build a strong case.

If you are the victim

• Act immediately. Time is of the essence. The longer you wait, the higher the chance the perpetrator has to move the funds, destroy evidence, or abscond.
• Preserve all communication. Do not delete any messages or call logs with the accused. These are critical pieces of evidence.
• Avoid further engagement. Do not engage in further arguments or negotiations with the accused without legal guidance, as they might try to manipulate the situation further.
• 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

Initially, the police might perceive the matter as a civil dispute, such as a loan that has not been repaid. It is crucial for the complainant to clearly articulate the element of cheating and dishonest intention from the very beginning. Once the police are convinced that a cognizable offense has been committed, they will register a First Information Report (FIR). The investigation will typically involve summoning the accused, recording statements from both parties and any witnesses, and analyzing bank account statements to trace the flow of money. The police may also investigate the assets acquired by the accused to establish the misappropriation of funds.

FAQs people normally have

What evidence is required?

• Proof of Payment: Bank statements, UPI transaction IDs, or any other receipts showing the money was transferred to the accused.
• Digital Communication: Screenshots of WhatsApp chats, text messages, emails, and recordings of phone calls where the investment was discussed and returns were promised.
• Witness Testimony: The statement of the mutual friend who introduced you to the accused can be valuable.
• Supplementary Evidence: Information or evidence about the accused’s lavish spending (e.g., social media posts, property documents if accessible) can help support the claim of misappropriation.

How long will the investigation take?

There is no fixed timeline for a police investigation. The duration depends on various factors, including the complexity of the case, the amount of evidence to be collected, the cooperation of banks and other institutions, and the workload of the investigating agency. While the Bharatiya Nagarik Suraksha Sanhita (BNSS) has provisions aimed at expediting the process, a financial fraud investigation can often take several months to over a year to complete and for the chargesheet to be filed in court.

Advocate Sudhir Rao, Supreme Court of India