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krishna   05 December 2021

A person took 8lakh rupees from me and not giving back

We used to conduct chits  between our family members  . whoever needs money on need basis , they used to get as per the auction. One family from apartment came very close and built trust with us . So we have included them as part of chit. This was happened from 2018. It went well for 2 years. 

In 2021, they are part of 4 chits ( 8 Lakh)  auction and collected complete amount from me. Now they are not paying monthly installment . When i asked for me, they put a compliant against me stating that we are harassing them to get money which is not true.

I don't have any chit license, i have only their signatures in a book with list of people ,amount they got from for all the chits. i do have their voice recordings where they agreed that , they took money from me. Some other people are there as a evidence.

Now, I need your suggestion to move forward. Can i file a cheating case against them ? If i need to proceed as per law, what are the initial steps should i take?

Kindly advise.

Thanks so much.


 5 Replies

Shubham Bhardwaj (Advocate)     05 December 2021

Dear Sir, 

I am Assuming that facts narrated by you are correct and nothing has been conclealed. 

Alright, Rs 8 lakhs is a big amount. So you must initiate legal action. But filing a civil case will not suffice. You need a two sided strategy i.e. on the criminal side and on the civil side. 

On the Criminal Side:- File a complaint under section 420 & 405 IPC to the police. Now let us assume that police files an FIR (which is rear). The police will arrest the accused persons and start investigation. In this scenario, assist the police. If a settlement is on the table, assess it and say yes or no. If the police do not register FIR then you ll have to file Application under section 156(3) Cr PC to judicial magistrate. The magistrate on hearing the application will issue direction to the police to regiter FIR and investigate. Same process will be followed. 

On civil side:-  File a civil suit for recovery of money along with interest and costs. 



Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh


Discaimer:- Opinion is only for guidance. 







krishna   05 December 2021

hello sir. thanks for your response. I don't have any promosiry note signed by the person who took 8Lakh from me. so can i go ahead file civl suit ? 

Please advise

kavksatyanarayana (subregistrar/supdt.(retired))     05 December 2021

No. If you have to prefer a case against him, first you will be also in trouble, as private chit business is an offence in many states in India. 

Advocate Bhartesh goyal (advocate)     06 December 2021

Yes, unregistered chit funds buisness is illegal moreover you advanced unaccounted money without any proof so taking any legal action against him will not fruitful.

Shubham Bhardwaj (Advocate)     06 December 2021

Dear Sir, 

With all due respect to the learned experts I must inform you that you may initiate legal action without any fear. The transaction you entered into is not chit fund business. It would have been a chit fund business had the offer to conribute money would be to general public. In your case it was not to general public but between family/friends. it is as simple as giving an unsecured loan to a family member or a friend. Therefore, the illegality that the above experts are referring to, in my considered opinion, do not apply to you. 

And to answer your query, yes you can file a civil suit also even if you dont have any promissory note. The problem that you will have to face is in proving the transaction. 



Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh


Disclaimer:- Opinion is only for guidance. 



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