Facing Fraud with an FMCG Dealership: How Can I Legally Protect Myself and Recover My Money?

Hi, last year, I took over a dealership of an FMCG company in Delhi. In exchange, I transferred 3.40 lakhs as an advance payment to the company's account for stock through RTGS. Throughout this time, I was informed that the stock would be sent. However, after not receiving it for months, I traveled to Delhi and met with the concerned police officer. He informed me that both the individual and the company are involved in fraudulent activities and advised me to file a legal case. However, he refused to lodge the complaint in his station, stating that it would be of no use.

The company did not provide me with any written documentation. The only evidence I possess is the bank statement showing the transfer. I am not the only one facing issues with this individual. I kindly request your guidance on how to proceed in this matter and expedite the process.

Thank you in advance.

Regards,
Ishan

I request you to speak to a legal expert. Can I connect you to one? I know someone who can help you. Even if you don't have any proof, the fact that you transferred the money into his account is proof of its own. Let's find out how to claim your money back.

Action Against Economic Offences

You need to go to the Economic Offences Wing of the police department. They will take action. If possible, go and get others involved to file a complaint with you.

The bank statement is documentary evidence to determine the transaction that has taken place. I suggest that before proceeding, ensure that all the conditions of the contract signed by you and the concerned party have been fulfilled, whether through mail or manually. Additionally, send a final reminder to the concerned party for legal evidence.

Lastly, lodge a complaint with your judicial authority.

Regards

You have evidence. Lodge a police complaint under the guidance of a capable lawyer and pursue the matter until it reaches a conclusion before the owners disappear.

Dear Ishan, File the complaint before the court under Section 156 (3) of the CrPC. The court will issue a notice to the police station and demand a status report to check if an FIR related to this matter has been registered or not. After receiving the status report, if the police indicate that there is no FIR, the court will record the statement of the complainant and review the documentary evidence (such as bank statements and RTGS receipts with UTR). If the court believes there is a prima facie case, it will instruct the police to register a case and conduct a thorough investigation. Subsequently, the police must register the case and submit a copy of the FIR to the court.

FIR can be lodged under various sections (depending on the available evidence) including Sections 420, 406, 120B, 467, 468, and 471.

Instances of such cases are frequent in the industry, where companies obtain securities/advances in exchange for dealership/C&F/Distributorship offers that either do not materialize or are later neglected by the company. This constitutes organized fraud aimed at capital generation. Such deceptive practices are commonly observed in companies like DRTV, financial institutions, and others.

I encourage all readers to share similar experiences and urge the moderator to permit the naming of companies to prevent ongoing fraudulent activities.

Thank you.