Bharatiya Nyaya Sanhita, 2023
Section 318 BNS: Cheating
Section 318 of the Bharatiya Nyaya Sanhita, 2023 defines cheating and prescribes separate punishment for ordinary cheating, cheating where the offender was bound to protect another person's interest, and cheating that dishonestly induces delivery of property or alteration or destruction of valuable security.
Section 318(1) BNS - Definition of Cheating
A person cheats when, by deceiving another person, he fraudulently or dishonestly induces the deceived person to deliver property to any person, to consent that any person may retain property, or intentionally induces the deceived person to do or omit to do something that he would not do or omit if not deceived, where the act or omission causes or is likely to cause damage or harm in body, mind, reputation or property.
The provision therefore covers both property-based deception and intentional inducement to act or omit to act where harmful consequences result or are likely.
Essential Ingredients of Cheating
The principal ingredients are:
- deception of a person;
- fraudulent or dishonest inducement to deliver or retain property, or intentional inducement to act or omit to act;
- the induced act or omission would not have occurred but for the deception; and
- where the case concerns an act or omission rather than delivery or retention of property, the act or omission causes or is likely to cause damage or harm to body, mind, reputation or property.
Dishonest Concealment of Facts Is Deception
The Explanation to Section 318(1) expressly provides that dishonest concealment of facts is deception within the meaning of the section.
Cheating can therefore be based not only on an express false statement but also on dishonest suppression of a material fact where the statutory requirements of deception and inducement are satisfied.
Statutory Illustrations
False claim of being in the Civil Service
A falsely pretends to be in the Civil Service and induces Z to supply goods on credit, although A does not intend to pay. The illustration states that A cheats.
Counterfeit manufacturer's mark
A puts a counterfeit mark on an article and deceives Z into believing it was made by a celebrated manufacturer, thereby inducing Z to buy and pay for it. A cheats.
False sample of goods
A shows Z a false sample, intentionally causing Z to believe that the goods correspond with the sample and thereby inducing Z to buy and pay for them. A cheats.
Bill expected to be dishonoured
A tenders a bill on a house where A has no money and expects the bill to be dishonoured, thereby inducing Z to deliver an article when A does not intend to pay. A cheats.
Fake diamonds pledged for a loan
A pledges articles as diamonds while knowing they are not diamonds and thereby dishonestly induces Z to lend money. A cheats.
Loan obtained without intention to repay
A intentionally deceives Z into believing that A intends to repay money borrowed from Z, although A has no such intention, and thereby obtains the loan. A cheats.
Promise to deliver goods and later breach of contract
A obtains an advance by intentionally deceiving Z into believing that A intends to deliver a quantity of indigo plant when A has no such intention. A cheats. But if A genuinely intended to deliver the goods when obtaining the money and only later breaks the contract, the illustration treats the matter as a civil breach rather than cheating.
False claim of contractual performance
A intentionally deceives Z into believing that A has performed A's part of a contract when A has not, and thereby dishonestly induces Z to pay money. A cheats.
Second sale or mortgage after prior conveyance
A sells and conveys an estate to B and, knowing that A no longer has rights in the property, later sells or mortgages the same property to Z without disclosing the earlier transfer and receives money from Z. A cheats.
Punishment, Cognizability, Bail and Trial Court
| Provision | Offence | Punishment | Cognizable | Bail | Trial Court |
|---|---|---|---|---|---|
| 318(2) | Cheating generally | Imprisonment up to three years, or fine, or both | Non-cognizable | Bailable | Any Magistrate |
| 318(3) | Cheating a person whose interest the offender was bound by law or legal contract to protect | Imprisonment up to five years, or fine, or both | Non-cognizable | Bailable | Any Magistrate |
| 318(4) | Cheating and dishonestly inducing delivery of property, or making, alteration or destruction of valuable security | Imprisonment up to seven years and fine | Cognizable | Non-bailable | Magistrate of the first class |
Cheating and Mere Breach of Contract
The statutory illustrations make an important distinction between deception existing when the transaction begins and a later failure to perform a genuine promise.
Where a person obtains money by representing an intention to perform while actually having no such intention, the conduct may amount to cheating. Where the person genuinely intended to perform at the outset but later fails to do so, the illustration recognises that the dispute may remain civil rather than criminal.
Section 318(4) - Delivery of Property or Valuable Security
Section 318(4) is the aggravated property form of cheating. It applies where cheating dishonestly induces the deceived person to deliver property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything signed or sealed and capable of being converted into a valuable security.
This sub-section carries the highest punishment within Section 318: imprisonment up to seven years and fine. It is also the only Section 318 punishment clause classified as cognizable and non-bailable in the BNSS First Schedule.
Compounding Under the BNSS
The Bharatiya Nagarik Suraksha Sanhita, 2023 separately identifies certain cheating offences as compoundable by the person cheated, subject to the conditions and permissions specified in the procedural law.
Compounding should therefore be considered by reference to the exact Section 318 sub-section charged and the applicable BNSS provision rather than by treating all cheating offences alike.
Official Legal Sources
For authoritative statutory wording and procedural classification, consult India Code, the NCRB BNSS schedule and the Ministry of Home Affairs resources listed in the right sidebar. The official Act and BNSS First Schedule prevail in case of any discrepancy in a secondary source.
Frequently Asked Questions
What is cheating under Section 318 BNS?
Cheating involves deception followed by fraudulent or dishonest inducement concerning property, or intentional inducement to act or omit to act in circumstances causing or likely to cause harm.
Does hiding a fact amount to cheating?
The Explanation to Section 318(1) states that dishonest concealment of facts is deception within the meaning of the section.
What is the punishment for ordinary cheating?
Section 318(2) provides imprisonment up to three years, or fine, or both.
Is ordinary cheating under Section 318(2) bailable?
Yes. Section 318(2) is non-cognizable and bailable and is triable by any Magistrate.
Is Section 318(4) bailable?
No. Section 318(4), involving dishonest inducement to deliver property or deal with valuable security, is cognizable and non-bailable.
Which court tries Section 318(4)?
Section 318(4) is triable by a Magistrate of the first class.
Does every breach of contract amount to cheating?
No. The statutory illustrations distinguish a dishonest intention existing when money or property is obtained from a later failure to perform a promise that was honestly intended at the outset.
This page provides general legal information. Application of Section 318 depends on the facts, evidence and law applicable to the individual case.