One of my friend worked with an internet services company. The company used to get its work done (click based advertising, website development) from anybody interested by creating a login ID for them (you pay a lum sum amount to get a login and get paid every month for the amount of work you do through that login id). The business was going fine and most of the people were receiving their monthly payments, suddenly the company shut down its operations, blaming its distributors for holding money (login id creation money). My friend was the area head for the business and was face of the company in its territory. An FIR was lodged under section 420 in the nearest police station against my friend (his name is first on the list) and the other two directors of the company (strange bcoz the case should be on the firm and not individuals) blaming them to have done a fraud with the person for a lum sum amount (FIR says the person has the receipts of the cash paid to my friend). My friend has records for most of the amount he received (that he deposited the same amount in the bank the next day) but does not posses an appointment letter (small company so a verbal commitment sufficed). Please suggest a possible remedy for my friend to get out of this mess. Moreover, if somebody can critically analyze the situation and let me know the possible outcomes, that will be highly appreciated. Thanks in advance.
