Kanoon SamjhoIndian law, made simple
Criminal Law

Someone took my money and cheated me. Criminal case or civil?

Simple answer

It depends on the intention at the start. If the person lied from the beginning to get your money, it is cheating, a crime. If they meant to pay or deliver but failed later, it is usually only a civil dispute, and you recover the money through a civil suit.

Real-life examples

Gurpreet paid ₹2 lakh to a man who showed fake letters and promised a government job. The lie was there from the start, so this is cheating that made him hand over money (BNS 318(4)), a cognizable offence.

Ayesha lent ₹50,000 to a friend who later lost his job and could not repay. There was no lie at the start, so it is a civil matter. She can send a legal notice and file a recovery suit, generally within 3 years of giving the loan.

Joseph gave his car to a dealer to sell. The dealer sold it and kept all the money. Misusing property given in trust is criminal breach of trust (BNS 316), even if there was no lie at the start.

What should you do?

  1. 1Collect proof: bank transfers, receipts, chats, call recordings, agreements, and anything that shows the false promise.
  2. 2If you were tricked into handing over money or property, give a written complaint at the police station and ask for an FIR.
  3. 3If police call it 'civil' and refuse, send the complaint to the SP by post, then apply to the Magistrate.
  4. 4For an unpaid loan or broken deal, send a legal notice, then file a recovery suit before the time limit runs out.
  5. 5If they gave you a cheque that bounced, act fast: you must send a notice within 30 days of the bank telling you it bounced.
  6. 6Lost money online? Call 1930 right away. For a large amount, ask a lawyer about filing both criminal and civil cases.

Exceptions & limits

  • Courts frown on using a criminal case just to pressure someone into repaying a loan. The High Court can quash such cases.
  • Cheating where no money or property was handed over (BNS 318(2)) is non-cognizable, so police may need the Magistrate's order to investigate.

Official legal reference

  • Bharatiya Nyaya Sanhita, 2023 — Section 318

    Cheating: up to 3 years, or fine, or both; up to 7 years and fine if the victim was made to hand over money or property.

    Earlier: IPC Sections 415, 417, 420Read the official text

  • Bharatiya Nyaya Sanhita, 2023 — Section 316

    Criminal breach of trust (misusing property given in trust): up to 5 years, or fine, or both; more for carriers, employees, agents and bankers.

    Earlier: IPC Sections 405 to 409Read the official text

  • Hridaya Ranjan Prasad Verma v. State of Bihar (2000)

    Supreme Court: a breach of contract is not cheating unless there was a dishonest intention when the promise was made.

  • Limitation Act, 1963 — Schedule, Article 19

    A suit to recover money lent must be filed within 3 years from when the loan was made.

    Read the official text

  • Bharatiya Nagarik Suraksha Sanhita, 2023 — Section 173(4)

    If the police station refuses an FIR, you can send the complaint to the SP; if that fails, apply to the Magistrate.

    Earlier: CrPC Section 154(3)Read the official text

Where to get help

National Cyber Crime Helpline

Report online financial fraud immediately so the money trail can be frozen.

Call 1930cybercrime.gov.in

NALSA Free Legal Aid

Free lawyer and legal advice for eligible people through Legal Services Authorities.

Call 15100nalsa.gov.in

Source & status

Applies to
All of India
Law in force since
1 Jul 2024
Legal review
Draft — awaiting lawyer review

Educational information, not legal advice for your case. Exact facts and the law that applies matter — speak to a lawyer before acting.

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