Fraud With An NRI? – And – Section 420 IPC (now BNS) – What To Do If An Nri Has Been Defrauded Or Cheated Upon? Why NRI’s Have Become An Easy Target For Fraudsters/Cheaters ?

Common Frauds Against NRIs in India

Non-Resident Indians are disproportionately targeted for fraud and cheating in India. The distance from India, unfamiliarity with current ground realities, and trust in relatives or agents create significant vulnerability. The most common frauds that NRIs fall victim to include:

• Property fraud: Ancestral or purchased land sold by relatives or caretakers without authorisation, fraudulent power of attorney misuse, encroachment (kabza) by local parties
• Matrimonial fraud: Marriage solely for immigration purposes; NRI spouse abandoned after visa obtained; dowry misappropriation
• Investment fraud: False promises of high returns on Indian investments; chit fund scams; builder frauds where flats are sold but never delivered
• Immigration and visa fraud: Fake visa agents and consultants collecting fees without providing services; fraudulent job offers abroad
• Identity fraud: Documents misused to take loans, sell property, or open fraudulent accounts in the NRI's name
• Inheritance fraud: Falsified wills or succession documents to deprive rightful NRI heirs of property

Legal Provisions Under the Bharatiya Nyaya Sanhita (BNS) 2023

With the replacement of the Indian Penal Code (IPC) by the Bharatiya Nyaya Sanhita, 2023 (BNS) (effective July 1, 2024), the key provisions relating to fraud and cheating have been renumbered and in some cases strengthened:

• Section 316 BNS (formerly Section 403 IPC) — Criminal misappropriation of property: up to 2 years imprisonment
• Section 318 BNS (formerly Section 405 IPC) — Criminal breach of trust: up to 3 years (simple) or 7 years (by professionals like lawyers, bankers) imprisonment
• Section 316(5) BNS (formerly Section 409 IPC) — Breach of trust by public servant, banker or agent: up to 10 years imprisonment
• Section 319 BNS (formerly Section 415 IPC) — Definition of cheating
• Section 318(4) BNS (formerly Section 420 IPC) — Cheating and dishonestly inducing delivery of property: up to 7 years imprisonment and fine. This is the primary provision for most NRI fraud cases.
• Section 61 BNS — Conspiracy to commit cheating: applicable when multiple persons are involved in defrauding an NRI

In cases involving digital or online fraud, the Information Technology Act, 2000 (as amended) and the Telecom Regulatory Authority regulations provide additional remedies. The Prevention of Money Laundering Act (PMLA) may apply where proceeds of fraud have been layered through financial transactions.

Immediate Steps to Take After Being Defrauded

Time is critical. Evidence can be destroyed and assets moved quickly once fraudsters realise they have been identified. As soon as you discover fraud:

1. Preserve all evidence immediately: Take screenshots of messages, emails, WhatsApp chats, bank transfer records, property documents, and any contracts. Store copies across multiple locations (email, cloud, physical).
2. Freeze the fraudulent transaction if possible: Contact your bank immediately for wire transfer reversals (effective within 24–72 hours). Report to the National Cybercrime Reporting Portal (cybercrime.gov.in) for online fraud.
3. Do not confront the fraudster directly: This can lead to destruction of evidence or acceleration of asset disposal. Let legal proceedings create the paper trail.
4. Engage an advocate in India immediately: An advocate can file an urgent application for attachment of property or freezing of bank accounts before assets are dissipated (Order XXXVIII Rule 5, CPC).
5. Obtain a certified copy of relevant documents from sub-registrar offices, courts, and revenue records if property fraud is suspected.

Filing a Police Complaint from Abroad

An NRI defrauded in India can file a complaint with the police even from abroad. Under Section 173 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023 (formerly Section 154 CrPC), the police are obligated to register an FIR for cognisable offences such as cheating under Section 318(4) BNS.

Methods available to NRIs:

• Online complaint portals: Punjab Police (citizenportal.punjabpolice.gov.in), Haryana Police (haryanapolice.gov.in), and state cyber cells accept online FIR registration
• Email complaint to SP/DCP: A complaint sent by email to the Superintendent of Police of the concerned district carries legal weight and creates a timestamp record
• Through an advocate: Your advocate in India can file the complaint on your behalf armed with a properly attested Power of Attorney
• Section 175(3) BNSS application: If police refuse to register FIR, your advocate can file a written complaint directly before the Magistrate, who can order an inquiry
• NRI Commission: Punjab and Haryana have dedicated NRI Commissions that take up fraud complaints by NRIs and can direct police investigation

If the fraud involves a public official or police inaction is suspected, a complaint to the Vigilance Bureau or the State Human Rights Commission may compel action.

Civil Remedies: Recovering Your Property or Money

Beyond criminal prosecution, civil proceedings are essential for recovering assets. Criminal prosecution punishes the wrongdoer; civil suits recover your losses:

• Declaration and injunction suit: For property fraud, file a suit seeking declaration of rightful ownership and a permanent injunction restraining further dealings. Apply for an interim injunction under Order XXXIX CPC to freeze the status quo immediately.
• Recovery suit: For money fraud, a civil suit for recovery of the defrauded amount plus interest can be filed. Courts can award compound interest in fraud cases.
• Attachment before judgment: Under Order XXXVIII Rule 5 CPC, courts can attach the fraudster's property before the final decree to ensure the fraudster cannot dissipate assets during litigation.
• Consumer Forum: For builder fraud or service-related cheating, complaints before the District Consumer Disputes Redressal Commission offer faster relief with the ability to award compensation.
• RERA complaint: For real estate fraud by builders/developers, the Real Estate Regulatory Authority (RERA) in each state provides mandatory registration, refund rights, and compensation mechanisms.

Cyber Fraud and Online Scams Targeting NRIs

NRIs are heavily targeted through digital channels. Common cyber frauds include:

• Fake property portals listing non-existent or already-sold properties; payments collected upfront
• Impersonation scams where fraudsters pretend to be NRI Commission officials or UIDAI representatives demanding fees
• WhatsApp fraud from unknown numbers claiming to represent NRI's relatives in distress needing emergency funds
• Investment apps promising high guaranteed returns, often operated as Ponzi schemes
• SIM swap fraud leading to takeover of banking credentials

For cyber fraud, file complaints at cybercrime.gov.in (National Cyber Crime Reporting Portal) and with the cybercrime cell of the relevant state police. Under the IT Act, the police can freeze and recover amounts transferred through fraudulent transactions within 24–48 hours if reported promptly.

How NRI Legal Consultants Can Help

At NRI Legal Consultants, we have handled hundreds of NRI fraud cases across Punjab, Haryana, and all major states. Our team offers:

• Emergency FIR filing and police complaint escalation within 24 hours
• Urgent interim injunctions and attachment orders to freeze assets
• Property fraud investigation through local verification and title searches
• Representation before NRI Commission, Punjab and Haryana
• Complete civil litigation for property recovery and money recovery suits
• Video conferencing consultations so you never need to appear in India for preliminary proceedings

If you have been defrauded, contact us immediately for a confidential consultation. Early intervention dramatically improves the odds of asset recovery.