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Neil Paul   09 July 2021

Filing A False Case

Greetings to the Experts,

I have a query related to a false filing of a case, upon my friend's new network marketing business.
Here is what he wants to know in his own words.

"An investor invested money in my startup business with no contract or verbal agreement for pay back. Now he wants everything back in whole when my business is in the red. He threatening to file fraud against me. Is that even possible?"

He seeks guidance to proceed in a lawful manner so that he doesn't fall in trouble, as right now due to the pandemic, many are facing problems with their work and he has just started and is worried.

Thanks in Advance for the Advise.


 3 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     10 July 2021

Insufficient details. Unless the contract between the investor and the company is examined, no opinion can be expressed.

G.L.N. Prasad (Retired employee.)     10 July 2021

Let him defend when the other party files such case with evidence, as it was stated that 'with no contract or verbal agreement for pay back'

This may be a one-sided version of your friend and he may be facing a threat.  Unless a legal notice is given with details by the investor demanding for paying the entire amount, further proceedings may not be possible, and there is no evidence of such "fraud" was stated in the query.

1 Like

P. Venu (Advocate)     10 July 2021

The facts posted suggest no fraud. Only a civil action is possible; a civil action takes its own time to be concluded.

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