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Cheated by an unregistered chit fund company

Querist : Anonymous (Querist) 17 February 2024 This query is : Resolved 
Hello respected lawyers,
I'm a resident of Hyderabad, working in a private company. A known lady from our colony asked me to put money in her unregistered chit fund company. I transferred the money through UPI every month and she owes me 5 Lakhs now. Its been 2 years now but she's not returning the money. Whenever I ask her for the money she will ask for few more days. She didn't give any promissory note or any document which says she took money for chit. All I have is the UPI transactions and chat history with her. We put that money for my marriage and now she's not willing to give it back. We pleased her to get our money back still no response. We even told we shall give police complaint but still she was ready and asked us to give any complaint. My mother and I have no idea how to get the money back. Please advise me how to proceed legally.

Apologies if this subject doesn't come under criminal law as I'm not fully aware.
T. Kalaiselvan, Advocate (Expert) 17 February 2024
It is a criminal offence.
However there was no compulsion on you to give her money regularly without any reason.
Believe you have given her money every month in the greed of getting more interest.
If yes, then you are standing to lose the entire money now, because it is not easy for you to recover the money from such fraudsters.
if you research you will find that you will not be the lone victim.
You gather the affected persons and give a joint complaint to the local police about this cheating activity of this lady but the police may not be able to recover your money, they may get her punished, hence you file a money recovery suit simultaneously and get her property attached before judgment by an order of court in the same money recovery suit.
The transactions details through UPI is also considered as valid evidence for the money given to her.
Querist : Anonymous (Querist) 17 February 2024
Hi Sir,
Thank you for your response.
I was never ok with putting chit, She lured me into this scam by saying there's one person less in this scheme. One of my known person also put chit but could recover their money. I don't have any influence/background and couldn't recover my money. So please let me know the required documents to proceed with filing a suit. I can explain more if you can provide me your email address or mobile number.
kavksatyanarayana (Expert) 17 February 2024
You submit a complaint to the Registrar of Chits of your area regarding the unregistered chit fund group and the address of the lady who is running unauthorized chit by registered post and submit a copy of the same to the SP of Police of your jurisdiction.
T. Kalaiselvan, Advocate (Expert) 17 February 2024
You can collect the transaction details and any other documentary evidences to prove the transfer of money to him.
Based on that, you first issue a legal demand notice and upon no response or no compliance of the demand made, you may proceed with a money recovery suit against him through the jurisdictional civil court.
Sudhir Kumar, Advocate (Expert) 19 February 2024
how do you prove that money was intended to be returned.

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