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Ritesh M   10 July 2021

Could this be financial cheating?

Respected Members.

I think I have a weak case but still I just wish to know if I have any options in principle.  A person who is a share broker informed me that they have some investment schemes. I need to invest say 3 Lakhs and I will get some returns after 5 months.  Since the person is a share broker and associated with a share trading firm I invested. However, this investment is on mutual basis and outside of that share trading firm.

There’s no documented evidence except records of bank  NEFT transfer. It’s mutual. That person will utilize those funds to reinvest in various markets and fetch returns.

Now there are changes in certain margins offered for trading by regulatory bodies and as a result his work is affected. He is not able to make those profits. The issue is he is neither returning profits nor the capital. As of now he is reachable, he is not absconding.

This raises a few doubts in my mind.   Can I file a complaint in police?

Can I send a letter demanding return of  capital still with him?

Appreciate your inputs. Thanks a lot.


 2 Replies

Shubham Bhardwaj (Advocate)     10 July 2021

Dear Mr Ritesh, 

In your case every thing will depend on fact which can be proved. Since documentary evidence is very less therefore oral evidence (i.e. testimony), would play an important role. 

Now coming back to your query, the facts suggest that it is case of Cheating under section 420 IPC.  Before  police complaint send a legal notice for return of principal money along with promised profits.  You can file a complaint u/s 420 Indian Penal Code to the police. Be very careful while drafting complaint and legal notice. Take help of a good lawyer because everything will depend on the complaint. The facts which will be mentioned in the complaint will be used in the trial, if the matter goes to that stage. 


Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh


Disclaimer:- Opinion is only for guidance.   

1 Like

yasaswi gomes (.)     10 July 2021

Yes, it’s a 420 case and financial regulator is not involved. However, take a printout of your transfer details. Then go to police and log a cheating case is on that person with bank details. 

1 Like

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