Pooja Banerjee And Kunal Verma Fraud Incident: Experts Advise To Protect Your Money With Agreements, Not Emotions

Celebrity couple Puja Banerjee and Kunal Verma have revealed that they lost all their savings to financial fraud by a close friend. One should not trust anyone who is very close when it comes to financial matters, as emotional trust often leads to losses.

“Unlike humans, money has no emotions, and this fear could practically make a lot of differences in your financial decisions & most importantly, your journey,” says Mohit Bagdi, founding member & head of investment research, MIRA Money. 

One must not ignore the “handwriting on the wall” before making informed decisions. “You must firstly detach yourself from the mindset that the said transaction is within the ambit of a friendly or family loan and therefore devoid of scrutiny, but must view it as a regular financial transaction of loan-giving to a third party. The very adoption of such a mindset immediately brings upon itself rationality and removes the urgency to act fast or on an immediate basis,” says Advocate Anshuman Singh, arguing counsel, Patna High Court, NCLAT New Delhi, and the Supreme Court of India. 

Red Flags To Watch Out For

Choosing an investment advisory is always about the experience & journey. You test someone for some time to realize whether a larger sum can be managed with the same person, or you need to shift. However, before handing over the first cheque, look for these from a red flag perspective. “First, many times, investment planning is done without a license. Second, the absence of a detailed investment plan with a rationale. Third, unreasonable projections or guarantees. Fourth, handling money in cash or having no banking trail. Fifth and finally, the approach with which the communication & planning is being done is casual or laid back,” adds Bagdi. 

What To Do In Case One Has Lost Money 

Unfortunately, there would not be much rescue. If one is caught up in such a scam, especially involving a close one, the only issue here is that there is no agreement or undertaking of the money that has been sent, so there is no liability technically which arises. Even if somebody is planning to give a huge sum to a close one, one should ensure that it is properly documented, maybe by way of a contract or an agreement of possibility in which the close one has a timeline to return the particular money.

“Even more, such money can also be added over in the form of a cheque rather than giving cash, as it would be documented. Transfers can also be thought of because that also gives you credibility that you have transferred money to somebody,” says Advocate Anushkaa Arora, principal and founder, ABA Law Office. 

“However, in such cases, one should always have in mind and bear in mind that as this involves giving money to a close one, so it can always be construed by courts that the money was given in pretext of a gift or a friendly loan so to prove this becomes very difficult,” says Arora.

“One may also insist on written agreements with specific clauses such as the repayment terms, penalty on non-payments, dispute resolutions, etc. A very practical solution is also to insist on post-dated cheques, and written correspondences including emails to keep details on record, and making bank or cheque transfers rather than cash payments, which must be avoided at all costs. Sometimes, the art of prioritizing oneself greatly helps in self-preservation,” says Singh.