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

Mr. Kumar, an employee at a tech firm in Metrocity, received a distressing call from his colleague, Mr. Singh. Mr. Singh claimed his wife had a severe medical emergency and needed immediate funds for hospitalisation. Moved by his colleague’s plight, Mr. Kumar transferred a significant amount of money to him. Shortly after, Mr. Singh resigned from the company and became unreachable. His phone was switched off, but he remained active on social messaging apps, ignoring Mr. Kumar’s attempts to contact him.

Feeling cheated, Mr. Kumar decided to take legal action and filed a civil suit for the recovery of his money in the Metrocity courts. For nearly two years, the court attempted to serve summons on Mr. Singh at his last known address in the state of Janapada, but he consistently evaded service. Frustrated by the delays and mounting legal costs, Mr. Kumar learned that the court’s next step was to order a “substituted service” by publishing the summons in a newspaper in Janapada. Following this, he would have to pursue the case in the local courts of Janapada, the state where Mr. Singh resided. This procedural marathon left Mr. Kumar questioning the effectiveness of the system, feeling penalised for trying to seek justice.

Advice in such cases

• Gather all records of communication, including text messages, emails, and call logs where the loan and the reason for it were discussed.
• Keep a clear record of the financial transaction, such as bank statements or digital payment receipts.
• Attempt to find the current address or workplace of the individual through mutual contacts or online searches, as this is crucial for serving legal notices.
• 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

When you are a victim of such fraud, both civil and criminal remedies are available under Indian law. Understanding these can help you decide the best course of action.

• Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section pertains to cheating. If an individual dishonestly induces you to deliver any property, including money, by deceiving you with a false narrative (like a fabricated medical emergency), it constitutes a criminal offence.
• Section 316 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section covers criminal breach of trust. If you entrusted property to someone and they dishonestly misappropriated it for their own benefit, violating the terms of that trust, they can be prosecuted under this section.
• Civil Suit for Recovery of Money: Parallel to criminal proceedings, you can file a civil lawsuit. The primary goal of a civil suit is not to punish the offender with imprisonment but to recover the money you are owed, along with interest and legal costs.

If you are the complainant

If you have already initiated legal proceedings, here are some points to keep in mind:

• Be Patient with the Process: The legal system is bound by procedures designed to ensure fairness to both parties. Steps like serving summons can be time-consuming, particularly when the defendant is actively avoiding them.
• Adhere to Court Directives: It is vital to cooperate with the court’s instructions, such as arranging for substituted service through newspaper publication or proceeding with the case in the appropriate jurisdiction. Non-compliance can weaken your case.
• Consider a Criminal Complaint: If you have only filed a civil suit, consider filing a criminal complaint with the police or directly to a magistrate. The pressure of a criminal investigation can often compel the accused to seek a settlement.
• 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

If you have just discovered that you have been cheated, here are the immediate steps you should take:

• Act Promptly: Time is of the essence. The longer you wait, the more difficult it can be to trace the individual and recover your funds.
• Preserve All Evidence: Immediately save and back up all digital communications, including chats, emails, and call records. Secure transaction details and bank statements. Do not delete anything.
• Send a Formal Legal Notice: A powerful first step is to have a lawyer draft and send a legal notice to the person’s last known address. This notice demands repayment within a specific timeframe and warns of legal action. It establishes a formal record of your attempt to resolve the matter amicably.
• 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

In cases involving loans between individuals, the police may initially view the dispute as civil. They might be reluctant to file a First Information Report (FIR) and suggest that you approach a civil court for recovery. However, this is not merely a case of an unpaid loan; it is a case of fraud. When you present clear evidence of deception from the outset—such as a fabricated story used to obtain the money—it becomes a criminal matter. A lawyer can help articulate the criminal elements of the case (cheating, criminal breach of trust) to the police, ensuring they register an FIR under the appropriate sections of the Bharatiya Nyaya Sanhita (BNS).

FAQs people normally have

What evidence is required?

To build a strong case, you will need compelling evidence, such as:

• Digital Communications: Screenshots of WhatsApp chats, SMS messages, or emails where the loan was requested and the false reason was stated.
• Financial Records: Bank statements, UPI transaction history, or any other proof showing the money was transferred from your account to theirs.
• Witnesses: Testimony from any mutual friends or colleagues who can corroborate your story or the borrower’s deceptive conduct.
• Proof of Deceit: Any evidence that proves the reason given for the loan was false (e.g., proof that there was no medical emergency).

How long will the investigation take?

The timeline for legal proceedings in India can vary significantly. A civil suit for recovery can take several years, especially if there are procedural delays like difficulties in serving summons. A criminal investigation’s duration depends on factors like the police’s workload, the complexity of gathering evidence, and the ability to locate and apprehend the accused. Patience and persistent follow-up through your lawyer are key.

Advocate Sudhir Rao, Supreme Court of India