Section 318 BNS (Bharatiya Nyaya Sanhita): Cheating Provisions & Cases

Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023 marks a significant reform in India’s criminal law structure mainly concerning offenses related to deception and fraud. It replaces and consolidates several provisions of the Indian Penal Code (IPC) that previously dealt with cheating, namely Sections 415, 417, 418 and 420. With the rise of financial crimes, cyber scams, and fraudulent misrepresentation in both personal and commercial transactions a more structured and comprehensive legal approach was required .

Section 318 of BNS clearly defines what constitutes cheating, outlines the various forms it can take, and prescribes graded punishments based on the severity and consequences of the offense. The provision not only strengthens legal safeguards for victims but also ensures that those who abuse trust or mislead others face stricter penalties. By providing clearer definitions and categorization, the law becomes easier to implement and enforce in today’s evolving legal and digital landscape. Explore other important Judiciary Notes.

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Section 318 of BNS

Cheating

(1) Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to cheat.

Explanation.—A dishonest concealment of facts is a deception within the meaning of this section.

Illustrations.

(a) A, by falsely pretending to be in the Civil Service, intentionally deceives Z, and thus dishonestly induces Z to let him have on credit goods for which he does not mean to pay. A cheats.

(b) A, by putting a counterfeit mark on an article, intentionally deceives Z into a belief that this article was made by a certain celebrated manufacturer, and thus dishonestly induces Z to buy and pay for the article. A cheats.

(c) A, by exhibiting to Z a false sample of an article intentionally deceives Z into believing that the article corresponds with the sample, and thereby dishonestly induces Z to buy and pay for the article. A cheats.

(d) A, by tendering in payment for an article a bill on a house with which A keeps no money, and by which A expects that the bill will be dishonoured, intentionally deceives Z, and thereby dishonestly induces Z to deliver the article, intending not to pay for it. A cheats.

(e) A, by pledging as diamonds articles which he knows are not diamonds, intentionally deceives Z, and thereby dishonestly induces Z to lend money. A cheats.

(f) A intentionally deceives Z into a belief that A means to repay any money that Z may lend to him and thereby dishonestly induces Z to lend him money, A not intending to repay it. A cheats.

(g) A intentionally deceives Z into a belief that A means to deliver to Z a certain quantity of indigo plant which he does not intend to deliver, and thereby dishonestly induces Z to advance money upon the faith of such delivery. A cheats; but if A, at the time of obtaining the money, intends to deliver the indigo plant, and afterwards breaks his contract and does not deliver it, he does not cheat, but is liable only to a civil action for breach of contract.

(h) A intentionally deceives Z into a belief that A has performed A’s part of a contract made with Z, which he has not performed, and thereby dishonestly induces Z to pay money. A cheats.

(i) A sells and conveys an estate to B. A, knowing that in consequence of such sale he has no right to the property, sells or mortgages the same to Z, without disclosing the fact of the previous sale and conveyance to B, and receives the purchase or mortgage money from Z. A cheats.

(2) Whoever cheats shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.

(3) Whoever cheats with the knowledge that he is likely thereby to cause wrongful loss to a person whose interest in the transaction to which the cheating relates, he was bound, either by law, or by a legal contract, to protect, shall be punished with imprisonment of either description for a term which may extend to five years, or with fine, or with both.

(4) Whoever cheats and thereby dishonestly induces the person deceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Note: "The information provided above has been sourced from the official website, i.e., Indian Code. While the content has been presented here for reference, no modifications have been made to the original laws and orders"

Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023 clearly lays out what amounts to the offense of cheating in a simplified yet comprehensive manner. At its core, the law punishes anyone who tricks or deceives another person for personal gain, especially when it causes or is likely to cause harm—whether physical, mental, financial, or reputational.

Let’s break it down for better understanding:

• What is Cheating?
• Cheating happens when someone deceives another person—either by lying, hiding important facts, or pretending something is true when it’s not. If this lie or deception leads the victim to give up property, agree to let someone keep property, or take (or not take) an action they normally wouldn’t have, it counts as cheating.
• For example, if A lies to B about being a government officer and tricks B into giving him money, A has committed cheating.
• What if there’s a special duty to protect someone’s interest?
• The law increases punishment if the offender knew they had a legal or contractual responsibility to protect the victim’s interest—like a lawyer misusing client funds or a banker tricking a customer. In such cases, the cheating is more serious because there was a duty of trust.
• What if the cheating involves valuable property or documents?
• If cheating results in the victim being tricked into delivering property or altering/destroying valuable documents or securities, the punishment becomes even stricter. This applies to fake investments, forged property deals or scams involving signed contracts.
• Even hiding the truth counts as cheating
• The law explains that dishonest concealment of facts—that is, hiding important information on purpose—also counts as cheating. This ensures people can't escape punishment by simply staying silent while misleading others.

In essence, Section 318 of BNS is designed to punish not just outright lies, but all forms of dishonesty that lead to wrongful gain or harm. It gives stronger protection to people in vulnerable positions and ensures that cheats are held fully accountable.

To establish an offense under Section 318, the following elements must be proven:

• Deception: The accused must have deceived the victim.
• Inducement: The deception must have led the victim to deliver property, consent to its retention, or act (or omit to act) in a way they otherwise wouldn't have.
• Resultant Harm or Likelihood: The act or omission caused or was likely to cause harm to the victim's body, mind, reputation, or property.

Section 318 of BNS : Nature and Scope

Section 318 explains various forms of cheating from simple deceit to more aggravated forms involving breach of trust or inducing significant property transfer . The broad language of the section ensures comprehensive coverage of deceptive practices aiming to deter fraudulent activities and protect individuals' interests .

Comparison with the Indian Penal Code (IPC)

Section 318 of BNS corresponds to multiple sections of the erstwhile Indian Penal Code ( IPC) , consolidating and expanding upon them.

Aspect	Section 318 of BNS	Corresponding IPC Sections
Definition of Cheating	Defines cheating comprehensively, including deception leading to property delivery, consent, or actions causing harm.	Section 415: Similar definition without the extensive illustrations provided in BNS.
Punishment for Cheating	Imprisonment up to 3 years, or fine, or both.	Section 417: Punishment up to 1 year, or fine, or both.
Cheating with Knowledge of Likely Harm	Imprisonment up to 5 years, or fine, or both, for cheating with knowledge of likely wrongful loss to a person whose interests the offender is bound to protect.	Section 418: Punishment up to 3 years, or fine, or both.
Cheating Inducing Property Delivery	Imprisonment up to 7 years and fine for cheating that induces delivery of property or alteration/destruction of valuable security.	Section 420: Similar punishment but without explicit mention of making, altering, or destroying valuable security.

Section 318 of BNS : Judicial Interpretation

Courts have consistently emphasized the necessity of proving dishonest intention at the time of the inducement to establish cheating. The focus remains on the perpetrator's intent rather than the actual loss incurred by the victim.

Section 318 of BNS : Landmark Cases

Some of the notable judgments relating to this section are as under -

• A.M. Mohan v. The State (2023) : The Supreme Court reiterated that to attract the provisions of cheating, it must be shown that the accused had a dishonest intention at the time of making the inducement . The Court emphasized that the focus should be on the intention to deceive rather than the actual loss incurred.
• Mallya v. Government of India (2020): Vijay Mallya was accused of obtaining substantial loans from Indian banks through deliberate misrepresentation of his company's financial condition. The case highlighted that fraudulent intention at the time of obtaining the loan was sufficient to constitute cheating, irrespective of eventual repayment.

Section 318 of BNS : Impact

The introduction of Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023 signifies a more structured and comprehensive approach to addressing cheating offenses in India. By consolidating related provisions and enhancing punishments, the law aims to deter fraudulent activities more effectively and provide clearer legal recourse for victims.

Conclusion

Section 318 of the Bharatiya Nyaya Sanhita represents a major evolution in legal structure of India relating to cheating offenses . By encompassing various forms of deceit and prescribing stringent penalties it highlights the commitment to protect individuals against fraudulent practices. As legal interpretations evolve the provision will play a crucial role in shaping the jurisprudence surrounding deceit and fraud in the country.