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

Ms. Anjali, a young adult from the city of Alipur, recently discovered a distressing financial fraud committed by a very close relative, her uncle, Mr. Sharma. Anjali is not currently employed and was shocked to receive an email from “SecureFuture Investments Ltd.” congratulating her on the approval of a significant loan against a financial policy held in her name. The funds were disbursed shortly after. She had never applied for any such loan.

Confused and alarmed, she visited the SecureFuture office in Alipur to inquire about the application. Upon reviewing the documents, her worst fears were confirmed. The application form contained what was clearly a forged version of her signature. Furthermore, the application included a cancelled cheque from her personal chequebook, which her uncle had access to. This incident was particularly painful as Mr. Sharma had a history of financial irresponsibility, often taking new loans to settle old ones and misrepresenting his financial situation. In the past, he had similarly forged his wife’s signature on various financial agreements, but the matter was never reported to avoid family conflict. For Anjali, this act was a profound breach of trust, and she felt compelled to ensure her uncle faced the legal consequences of his actions, which he had evaded for too long.

Advice in such cases

Discovering that a family member has committed forgery and fraud in your name is emotionally and legally complex. It is crucial to act decisively to protect your financial future and credit history. Here are the immediate steps you should consider:

• Gather All Evidence: Collect every piece of documentation related to the fraudulent loan. This includes the email/SMS notification of the loan approval, a copy of the forged loan application from the financial institution, bank statements showing the credit of the loan amount, and any other correspondence.
• Notify the Financial Institution: Immediately send a formal, written complaint to the financial institution (e.g., the insurance company or bank) that issued the loan. Clearly state that the loan was taken without your consent, your signature was forged, and it is a case of fraud. Request them to freeze the account and launch an internal investigation. Keep a copy of this communication.
• File a Police Complaint: Fraud and forgery are serious criminal offenses. You should file a complaint at your local police station to initiate a First Information Report (FIR). This is a critical step for any legal action and for absolving yourself of the liability to repay the loan.
• **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

The actions described constitute several criminal offenses under Indian law, primarily covered by the Bharatiya Nyaya Sanhita (BNS), 2023.

• Section 333 of BNS, 2023 (Forgery): This section defines the act of making a false document or electronic record with the intent to cause damage or injury, to support any claim or title, or to cause any person to part with property.
• Section 335 of BNS, 2023 (Forgery for purpose of cheating): This section specifically deals with forgery committed with the intent to cheat, which is directly applicable in cases of fraudulent loans.
• Section 318 of BNS, 2023 (Cheating): This section applies as the accused fraudulently or dishonestly induced the financial institution to deliver property (the loan amount) by deceit.
• Section 316 of BNS, 2023 (Criminal breach of trust): If the relative was entrusted with your property (like a chequebook) and dishonestly misappropriated it for their own use, this section may also be invoked.

If you are the complainant

As the person initiating the legal action, you need to be systematic and proactive.

• **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
• Draft a Detailed Complaint: With the help of your lawyer, prepare a detailed written complaint for the police. It should include a chronological account of events, how you discovered the fraud, the details of the forged documents, and the role of the accused. Attach copies of all the evidence you have gathered.
• Follow up on the FIR: After submitting the complaint, ensure that the police register an FIR. If they show reluctance, your lawyer can guide you on the next steps, which may include approaching a senior police officer or filing a private complaint before a Magistrate under Section 175(3) of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023.
• Cooperate with the Investigation: Provide your full cooperation to the investigating officer. You may be required to provide specimen signatures for comparison with the forged ones by a forensic handwriting expert.

If you are the victim

As the victim of this financial crime, your priority is damage control and protecting your rights.

• **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
• Secure Your Finances: Immediately secure all your personal financial documents. This includes other chequebooks, bank cards, and online banking credentials. Inform your bank about the compromised chequebook so they can stop payment on any remaining cheques.
• Communicate in Writing: Ensure all your communication with the financial institution and the police is in writing. This creates a paper trail that is invaluable as evidence.
• Dispute the Liability: Clearly and consistently maintain your stance that you are not liable to repay the loan as it was obtained through fraud. The police FIR is crucial evidence to support this claim with the financial institution and credit rating agencies.

How the police behave in such cases

Police response can vary. In cases involving family members, police might initially be hesitant to register an FIR and may try to mediate or dismiss it as a “family dispute.” They might suggest you resolve the matter internally. However, forgery and fraud are cognizable offenses, and the police are duty-bound to register an FIR. It is important to be firm and present a clear, evidence-backed complaint. Having a lawyer accompany you or send a legal notice can often compel the police to take the matter seriously and register the case under the appropriate sections of the law.

FAQs people normally have

• Can I take legal action against a close relative like a father or uncle?
  Yes. The law is the same for everyone, regardless of the relationship between the complainant and the accused. Criminal acts are prosecuted based on the evidence, not the family connection.
• Am I legally required to repay the loan taken in my name through forgery?
  No. If you can successfully prove that the loan was obtained through forgery and you did not receive or benefit from the loan amount, you are not liable for its repayment. The liability lies with the perpetrator and potentially the financial institution if they failed in their due diligence.
• What if my family pressures me to withdraw the case?
  This is a common issue in such situations. While the emotional pressure can be immense, withdrawing the complaint can have serious long-term consequences. The fraudulent loan will remain on your credit history, and you could be held liable for repayment. It is a personal decision, but it should be made after careful consideration and legal advice.

What evidence is required?

To build a strong case, the following evidence is critical:

• The loan application form containing the forged signature.
• Your genuine specimen signatures for forensic comparison.
• The cancelled cheque used in the application.
• Bank statements showing the loan disbursement.
• All electronic communication (emails, SMS) from the financial institution regarding the loan.
• A copy of the written complaint filed with the financial institution and the police.
• Any witness testimony, if available.

How long will the investigation take?

The duration of a police investigation can vary significantly. It depends on factors like the complexity of the case, the workload of the police station, and the time taken for forensic reports (such as handwriting analysis), which can take several months. A simple case might be investigated within 3-6 months, while more complex ones can take over a year before a chargesheet is filed in court.

Advocate Sudhir Rao, Supreme Court of India