The legal landscape in India has always been a cornerstone for maintaining order and justice. Among the myriad laws that govern civil and criminal behaviour, the laws relating to cheating and dishonestly inducing delivery of property are particularly crucial.
Bharatiya Nyaya Sanhita (BNS) 318(4) is one such provision that addresses this specific crime, ensuring that offenders are appropriately penalised and victims are granted justice.
What is Section 318(4) of Bharatiya Nyaya Sanhta – BNS 318(4)?
Bharatiya Nyaya Sanhita (BNS) 318(4) is a section within the Indian legal framework that deals explicitly with the offence of cheating and dishonestly inducing the delivery of property. This section is part of a broader set of laws aimed at curbing fraudulent activities that harm individuals and businesses alike.
Under BNS 318(4), a person is said to commit the offence of cheating if they, by deceiving another, fraudulently or dishonestly induce the person to deliver any property or consent to the retention of any property by any person or intentionally induce the person to do or omit to do anything which they would not do or omit if they were not so deceived.
What is the purpose of the update?
In the world of movies, jokes, and puns, Section 420 of the Indian Penal Code (IPC) was enacted by the British in 1860. It is undoubtedly the most well-known among the general public. It addressed fraud, forgery, deception, and dishonestly pressuring someone to give something. Section 318 of the BNS (Bharatiya Nyaya Sanhita) has now taken its place.
It includes 358 sections as opposed to the 511 parts in the IPC. It stipulates that lying and cheating will result in a maximum sentence of seven years in prison or a fine. In a similar vein, Section 319 prohibits cheating through impersonation.
Key Elements of Cheating Under BNS 318(4)
To understand the offence under BNS 318(4), it is essential to break down the elements that constitute this crime:
- Deception
The accused must have intentionally deceived the victim. This deception can be through false promises, misrepresentation of facts, or any other form of trickery that leads the victim to believe something untrue.
- Dishonest Inducement
The deception must induce the victim to deliver property or consent to its retention. Inducement here refers to the victim being persuaded or influenced by the false representation made by the accused.
- Delivery of Property
The victim must have delivered the property to the accused as a result of the deception. Property here is not limited to physical assets but can also include money, securities, and other valuable items.
- Intent
The accused’s intent must be fraudulent or dishonest. This means that the accused knew that their actions were likely to cause wrongful loss to the victim.
- Cheating
This involves deceiving a person to induce them to act in a certain way. Dishonest concealment of facts also constitutes cheating under the BNS.
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Implications of Section 318(4) BNS
Protection of Property Rights:
This section safeguards individuals and businesses from fraudulent activities that result in property loss.
Deterrence of Economic Offenses:
The stringent punishment acts as a deterrent for potential offenders.
Clarity and Effectiveness:
The precise language of the BNS ensures better understanding and application of the law by legal professionals.
Similarities between Bhartiya Nyaya Sanhita and Indian Penal Code
| Bhartiya Nyaya Sanhita, 2023 | Indian Penal Code, 1860 (corresponding section) |
| Section 318. (1) A person is considered to have cheated if they have deceived someone, induced them to give something to someone else or consented to them keeping something, or if they have purposefully persuaded someone to do something or refrain from doing something that they would not have done if they had not been duped, and that action or omission has caused or is likely to cause, harm to that person’s body, mind, reputation, or property.JustificationIn the context of this section, lying is defined as dishonestly withholding information. | Section 415. Cheating: A person is considered to have “cheated” if they have deceived someone, induced them to give something to someone else or consent to someone else keeping something, or if they have purposefully persuaded someone to do something or refrain from doing something that they would not have done if they had not been duped, and that act or omission has caused or is likely to cause that person harm to their body, mind, reputation, or property.JustificationIn the context of this section, lying is defined as dishonestly withholding information. |
| (2) Cheaters must be penalised by a fine, imprisonment of any kind for a maximum of three years, or both. | Section 417. Penalties for Cheating: — A person found guilty of cheating faces a fine, a year-long sentence of either type of jail, or both. |
| (3) Anyone who engages in cheating knowing that doing so will likely result in unjust loss to someone whose interest in the transaction to which the cheating relates he was required to protect by law or by a legal contract, faces a term of imprisonment of any kind up to five years, a fine, or both. | Section 418. Cheating knowing that the person whose interests the offender is obligated to defend may suffer unlawful loss. Anyone who cheats knowing that he will probably cause wrongful loss to someone whose interest in the transaction to which the cheating relates, he was required to protect by law or a legal contract, faces a term of imprisonment of either kind that can last up to three years, a fine, or both. |
| (4) A person who deceives someone by cheating and then dishonestly persuades them to give up property to someone else, create, alter, or destroy a valuable security in whole or in part, or create anything that is sealed or signed and has the potential to be turned into a valuable security, faces up to seven years in prison of any kind as well as a fine. | Section 420. Cheating and dishonestly inducing the delivery of property.—Anyone found guilty of cheating and dishonestly inducing the person they are deceiving to deliver any property to anyone, or to create, alter, or destroy all or a portion of a valuable security, or any signed or sealed material that has the potential to be turned into a valuable security, faces a maximum sentence of seven years in prison of any kind in addition to a fine. |
Penalties for Cheating Under BNS 318(4)
The penalties under BNS 318(4) are stringent, reflecting the seriousness of the offence. If found guilty, the accused can face imprisonment, fines, or both. The exact quantum of punishment depends on the gravity of the offence and the value of the property involved. The law ensures that offenders are not only punished but also deterred from committing such crimes in the future.
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Real-World Applications of BNS 318(4)
BNS 318(4) has been instrumental in addressing various cases of fraud and cheating across India. Whether it involves real estate scams, financial fraud, or online cheating, this provision serves as a powerful tool for law enforcement agencies to bring perpetrators to justice.
For example, in a case where an individual was tricked into investing in a non-existent company, resulting in a significant financial loss, BNS 318(4) would be the applicable law to prosecute the fraudster. The law ensures that the victim’s rights are upheld and that the perpetrator is held accountable for their actions.
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What is considered to be Cheating?
(1) A cheater is someone who, by deceiving another person, fraudulently or dishonestly persuades that person to give up property to another person or consents to another person keeping property. They can also deliberately persuade that person to do or refrain from doing anything that, if they weren’t deceived, they would not have done, and that act or omission is likely to cause that person harm or damage to their body, mind, reputation, or property.
Explanation: For the purposes of this section, lying about a fact is considered deception.
Illustrations:
(a) A deceives Z by appearing to be in the Civil Service on purpose and then dishonestly persuades Z to provide him with items on credit that he does not intend to pay for. A is dishonest.
(b) A dishonestly convinces Z to purchase and pay for a product by deceiving Z into believing it was manufactured by a renowned manufacturer by applying a counterfeit mark on it. A is dishonest.
(c) A deceives Z into thinking that the article matches the sample by presenting a fictitious version of the article to Z. This dishonestly persuades Z to purchase and pay for the article. A is dishonest.
(d) A deceives Z on purpose and dishonestly convinces Z to deliver the article with the aim of not paying for it by offering a bill on a house with which A retains no money and by which A expects the bill to be dishonoured. A is dishonest.
(e) A purposefully misleads Z and dishonestly persuades Z to lend money by promising as diamonds items that he knows are not diamonds. A is dishonest.
(f) A dishonestly persuades Z to lend him money, knowing full well that A does not intend to repay it, by purposefully misleading Z into thinking that A can repay any money Z may advance to him. A is dishonest.
(g) A dishonestly causes Z to advance money under the false impression that he will deliver a specific quantity of indigo plant, which he does not intend to deliver. This is done on purpose. A cheats; but, if A violates his contract and fails to deliver the indigo plant after intending to do so at the time of receiving the money, he is not considered to have cheated and could face civil penalties instead.
(h) A dishonestly persuades Z to pay money by purposefully misleading Z into believing that A has fulfilled his end of a contract that A has not fulfilled.
(i) A sells and transfers ownership of an estate to B. A, aware that he will lose all rights to the property as a result of the transaction, sells or mortgages the estate to Z without telling B about the prior sale and transfer, and gets payment from Z for the purchase or mortgage. A is dishonest.
(2) The punishment for cheating is two fold:
Either a fine or both, or imprisonment of any kind for a maximum of three years.
(3) Anyone who engages in cheating knowing that doing so will likely result in unjust loss to someone whose interest in the transaction to which the cheating relates, he was required to protect by law or by a legal contract faces a term of imprisonment of any kind up to five years, a fine, or both.
(4) Anyone who deceives someone by cheating and then dishonestly persuades that person to give up property to someone else, create, alter, or destroy all or a portion of a valuable security, or anything sealed or signed that has the potential to be turned into a valuable security, faces a maximum sentence of seven years in prison of any kind in addition to a fine.
Conclusion
Bharatiya Nyaya Sanhita (BNS) 318(4) is a critical provision in the Indian legal system, safeguarding individuals and businesses from fraudulent activities. By understanding the elements of this law, individuals can better protect themselves from becoming victims of cheating and dishonestly inducing the delivery of property. As legal awareness continues to grow, BNS 318(4) will remain a cornerstone in the fight against fraud, ensuring that justice is served, and order is maintained in society.
Frequently Asked Questions on Bharatiya Nyaya Sanhita (BNS) 318(4)
Q1. What is Bharatiya Nyaya Sanhita (BNS) 318(4)?
Ans1. Bharatiya Nyaya Sanhita (BNS) 318(4) is a section of Indian law addressing the offence of cheating and dishonestly inducing the delivery of property. It deals with fraudulent activities where an individual deceives another into transferring property or consenting to its retention under false pretences.
Q2. How does BNS 318(4) differ from Section 420 of the Indian Penal Code (IPC)?
Ans2. While Section 420 of the IPC, enacted by the British in 1860, addresses fraud and cheating, BNS 318(4) is part of the Bharatiya Nyaya Sanhita, which modernises and updates the legal framework. BNS 318(4) includes a maximum imprisonment term of seven years and a fine, whereas Section 420 also provides for similar penalties but within the context of the IPC.
Q3. What are the key elements of cheating under BNS 318(4)?
Ans3. The key elements include deception through false promises or misrepresentation, dishonest inducement leading to property delivery or consent to its retention, and the intent to cause wrongful loss to the victim.
Q4. What penalties are prescribed under BNS 318(4) for cheating?
Ans4. Under BNS 318(4), penalties for cheating include imprisonment of up to seven years, a fine, or both. The severity of the punishment depends on the gravity of the offence and the value of the property involved.
Q5. How does BNS 318(4) handle cases of financial fraud and scams?
Ans5. BNS 318(4) is used to prosecute cases of financial fraud and scams by addressing situations where individuals are deceived into investing in non-existent ventures or transferring money under false pretenses. It provides a legal mechanism to hold perpetrators accountable and secure justice for victims.
Q6. Can you provide examples of cheating covered under BNS 318(4)?
Ans6. Examples include deceiving someone into providing goods on credit without intent to pay, convincing someone to purchase counterfeit products, or misleading someone into lending money with false promises of repayment.
Q7. What is the significance of BNS 318(4) in the Indian legal system?
Ans7. BNS 318(4) is significant as it modernises the legal approach to handling cheating and fraud, providing a comprehensive framework to address such offences effectively and ensuring that justice is served for victims of dishonest practices.
Q8. How does BNS 318(4) compare to similar sections in the Indian Penal Code?
Ans8. BNS 318(4) updates and aligns with the principles of similar sections in the IPC but introduces more precise penalties and definitions. It provides clearer guidelines and enhanced provisions for dealing with cheating and fraudulent activities.
Q9. What are some common defences against charges under BNS 318(4)?
Ans9. Common defences may include proving that no deception occurred, demonstrating that the victim was aware of the true facts, or showing that the inducement was not dishonestly intended. Legal representation can help navigate these defences effectively.
Q10. How can individuals protect themselves from becoming victims of cheating under BNS 318(4)?
Ans10. Individuals can protect themselves by verifying the credibility of transactions, avoiding deals that seem too good to be true, and seeking legal advice before making significant financial commitments. Awareness and due diligence are key to preventing fraud.
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