Bharatiya Nyaya Sanhita, 2023
Section 322 BNS: Dishonest or Fraudulent Execution of Deed of Transfer Containing False Statement of Consideration
Section 322 of the Bharatiya Nyaya Sanhita, 2023 punishes dishonest or fraudulent participation in a deed or instrument relating to property where the document contains a false statement about consideration or about the person for whose real use or benefit the transaction is intended to operate.
Section 322 BNS - Statutory Provision
Section 322 applies to a person who dishonestly or fraudulently signs, executes or becomes a party to a deed or instrument that purports to transfer property, an interest in property, or to subject such property or interest to a charge, where the deed or instrument contains a false statement about the consideration for the transfer or charge, or about the person or persons for whose real use or benefit it is intended to operate.
The provision is aimed at fraudulent documentation of property transactions, particularly where the document misstates the economic consideration or conceals the person who is intended to receive the real benefit.
Essential Ingredients of Section 322 BNS
The principal ingredients are:
- there must be a deed or instrument concerning property or an interest in property;
- the instrument must purport to transfer the property or interest, or subject it to a charge;
- the accused must sign, execute or become a party to that deed or instrument;
- the document must contain a false statement concerning consideration or the real person or persons for whose use or benefit it is intended to operate; and
- the accused's participation must be dishonest or fraudulent.
A mere drafting error or inaccurate recital does not automatically amount to the offence. The statutory requirement that the accused act dishonestly or fraudulently remains essential.
What Type of Deed or Instrument Is Covered?
Section 322 covers a deed or instrument that purports to transfer property or any interest in property, or to create a charge over such property or interest.
The wording is not confined to one particular form of conveyance. The focus is on the substance of the instrument and whether it operates, or purports to operate, as a transfer or charge involving property.
False Statement Relating to Consideration
One branch of Section 322 concerns a false statement relating to the consideration for a transfer or charge. Consideration is the value or benefit stated as supporting the transaction.
Where the stated consideration is false and a person dishonestly or fraudulently signs, executes or becomes a party to the document, the statutory ingredients may be attracted.
False Statement About the Real Beneficiary
The section also applies where the deed or instrument falsely states, or misrepresents, the person or persons for whose real use or benefit the transaction is intended to operate.
This branch of the provision addresses instruments structured to disguise the actual beneficial purpose or beneficiary of a property transaction.
Dishonest or Fraudulent Participation Is Essential
Section 322 does not punish every incorrect recital in a deed. The accused must dishonestly or fraudulently sign, execute or become a party to the instrument.
Accordingly, the surrounding circumstances, knowledge of the false statement, purpose of the transaction and role of the accused may all be relevant when determining whether the required mental element is established.
Punishment, Cognizability, Bail and Trial Court
| Provision | Section 322 BNS |
|---|---|
| Offence | Dishonest or fraudulent execution of deed of transfer containing false statement of consideration |
| Punishment | Imprisonment of either description up to three years, or fine, or both |
| Cognizable | No - non-cognizable |
| Bailable | Yes |
| Trial court | Any Magistrate |
Compounding Under the BNSS
The Bharatiya Nagarik Suraksha Sanhita, 2023 lists the Section 322 offence among compoundable offences. The person identified as competent to compound the offence is the person affected by the fraudulent execution of the deed or instrument.
Compounding should be considered with reference to the precise charge and the procedural requirements of the BNSS.
Official Legal Sources
For authoritative statutory wording, procedural classification and commencement information, consult India Code, NCRB and the Ministry of Home Affairs resources listed in the right sidebar. The official BNS and BNSS material prevail in case of any discrepancy in a secondary source.
Frequently Asked Questions
What does Section 322 BNS punish?
It punishes dishonest or fraudulent signing, execution or participation in a deed or instrument concerning property where the document contains a false statement about consideration or the person for whose real use or benefit it is intended to operate.
What is the punishment under Section 322 BNS?
The punishment is imprisonment of either description up to three years, or fine, or both.
Is Section 322 BNS cognizable?
No. It is non-cognizable.
Is Section 322 BNS bailable?
Yes. It is bailable.
Which court tries Section 322 BNS?
The offence is triable by any Magistrate.
Can Section 322 BNS be compounded?
Yes. The BNSS identifies the person affected as the person who may compound the offence, subject to the applicable procedural requirements.
Does every wrong statement in a deed amount to an offence?
No. Section 322 requires the accused to act dishonestly or fraudulently, in addition to the deed or instrument containing the type of false statement specified in the section.
This page provides general legal information. Application of Section 322 depends on the facts, evidence and law applicable to the individual case.