Data Entry Project Scam

I need legal advice regarding a data entry / online form-filling project dispute which appears to be a scam or dishonest business conduct by the company. One of my friends informed me that there was a data entry project available and said that it could benefit us financially and also help us engage unemployed youth by giving them work. Since I am myself unemployed and understand the difficulties faced by unemployed people, I agreed to take up the project. We entered into an arrangement with a company for an online form-filling/data entry project. The company initially made an agreement with us for 10 seats. However, we clearly informed them that we wanted to start with only 5 seats first, and only if the project appeared genuine and workable, we would then proceed with the remaining 5 seats. The company agreed to this arrangement. Based on this assurance, we hired 5 manpower/operators, arranged infrastructure, and started operations. The company’s project condition was 1500 forms in 15 working days, but we negotiated with them and clearly informed them that we could realistically complete only 1250 forms in 15 working days. The company agreed to this revised target. After we had already started working for a few days and had invested money in manpower and infrastructure, the company suddenly blocked our IDs/login access and informed us that unless we paid for the remaining 5 seats which they had kept on hold, our IDs would not be unlocked and the project would not continue. Since we had already invested substantial money and had hired staff, we were placed under pressure and had no practical option. We somehow arranged funds and paid the amount demanded by the company for those 5 seats so that the IDs could be unlocked and the work could continue. In the first cycle, despite our efforts, we could not complete the full revised target of 1250 forms within the 15 working days. The company then informed us that since the target had not been achieved, the project was terminated. At that stage, we had already paid additional seat charges and had already incurred salary and infrastructure expenses. After this, we still continued because we had already made heavy investment and had paid for the additional seats. We believed that perhaps this was part of the normal project process and decided to work even harder in the next cycle. We again arranged manpower and worked day and night. In the second cycle, instead of merely completing 1250 forms, we completed more than 1300 forms and submitted them to the company. However, after submission, the company again refused to accept the work and informed us that: some forms were allegedly missed in between, and some forms were allegedly not filled in proper sequence, and on that basis they again terminated the project / rejected the work. Because of this entire process, we have suffered a loss of approximately ₹7,00,000 (Seven Lakh Rupees), including: manpower salaries paid to operators, office/infrastructure setup expenses, electricity/internet/operational expenses, seat payment / charges paid to the company, management and supervision expenses, and overall financial loss due to relying on the company’s representations. My grievances are as follows: The company induced us to take the project and make investment in manpower and infrastructure. The company first agreed to let us start with 5 seats, but after work had started, it blocked our IDs and compelled us to pay for the additional held seats in order to continue. After taking payments and getting work done, the company terminated/rejected the project on technical grounds. In the second cycle, even after we completed more than the required forms, the company again rejected the work on the basis of missed forms / sequence issues. Their conduct appears dishonest and unfair, and it appears that the company may never have intended to pay fairly after getting the work done and extracting seat payments. Due to their conduct, we suffered major financial loss and mental harassment. I want legal advice on the following: Whether this amounts to cheating, fraud, criminal breach of trust, cyber fraud, or unfair trade practice. Whether I can file a complaint against the company before: Cyber Crime Cell / Cyber Police Local Police Station Consumer Forum / Consumer Commission or through a legal notice and recovery proceedings Whether I can claim recovery of: the money paid to the company, salary and infrastructure losses, and compensation for mental harassment and financial damage. Whether the company’s act of blocking IDs after work had started and demanding payment for held seats can be treated as coercive and dishonest conduct. What is the best legal remedy if I have: agreement copies, payment proofs, chats/WhatsApp messages, project instructions, rejection messages, and proof of manpower/infrastructure expenses. Please advise what legal action should be taken and under which provisions, and whether I should first send a legal notice or directly file a police/cyber complaint.