(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.
Simplified Explanation
Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS 2023) addresses the offense of cheating, detailing various forms of deceptive conduct that lead to wrongful gain at the expense of others. The section also defines the punishments associated with such offenses, depending on the severity of the cheating.
Key Elements of Section 318:
- Definition of Cheating (Subsection 1):
- A person is said to cheat if, by deception, they fraudulently or dishonestly induce another person to:
- Deliver property to any person, or consent to someone retaining property.
- Do or omit to do something which they would not have done or omitted if they were not deceived.
- The act or omission caused, or was likely to cause, damage or harm to the person in their body, mind, reputation, or property.
- Dishonest concealment of facts is considered deception under this section.
- A person is said to cheat if, by deception, they fraudulently or dishonestly induce another person to:
- Illustrations of Cheating:
- (a) A falsely pretends to be in the Civil Service and deceives Z into letting him take goods on credit, intending not to pay. This is cheating.
- (b) A puts a counterfeit mark on an article to deceive Z into thinking it was made by a famous manufacturer and dishonestly induces Z to buy it. This is cheating.
- (c) A shows Z a false sample of an article to induce Z to buy and pay for an article that does not match the sample. This is cheating.
- (d) A tenders a bill from a bank where he has no funds, intending the bill to be dishonored, to deceive Z into delivering an article without paying for it. This is cheating.
- (e) A pledges fake diamonds to deceive Z into lending him money. This is cheating.
- (f) A deceives Z into believing he intends to repay money borrowed, but A never intends to do so. This is cheating.
- (g) A deceives Z into thinking he will deliver a quantity of indigo plant, but A does not intend to deliver it. This is cheating. However, if A intends to deliver it but later fails to do so, it would be a breach of contract, not cheating.
- (h) A deceives Z into believing he has performed his part of a contract and induces Z to pay money. This is cheating.
- (i) A sells property to B but later sells it to Z without disclosing the previous sale, deceiving Z into paying for something A has no right to sell. This is cheating.
- Punishment for Cheating (Subsection 2):
- If a person cheats, they can face:
- Imprisonment (either description) for up to three years, or
- Fine, or both imprisonment and fine.
- If a person cheats, they can face:
- Cheating with Knowledge of Wrongful Loss (Subsection 3):
- If a person cheats and knows that their actions are likely to cause wrongful loss to someone whose interest they are legally or contractually bound to protect, the punishment becomes more severe:
- Imprisonment (either description) for up to five years, or
- Fine, or both imprisonment and fine.
- If a person cheats and knows that their actions are likely to cause wrongful loss to someone whose interest they are legally or contractually bound to protect, the punishment becomes more severe:
- Cheating Involving Valuable Security (Subsection 4):
- If the cheating results in the person being deceived into:
- Delivering property, or
- Making, altering, or destroying a valuable security (or anything signed or sealed that can be converted into a valuable security),
- The punishment is:
- Imprisonment (either description) for up to seven years, and
- A fine.
- If the cheating results in the person being deceived into:
Summary of Section 318:
- Cheating involves deceiving someone to induce them to take actions (such as delivering property or doing something they wouldn’t do if they knew the truth), resulting in harm to their body, mind, reputation, or property.
- Various forms of cheating are illustrated, such as pretending to have a title or position (e.g., pretending to be in the Civil Service), using counterfeit goods, and deceiving others into transactions based on false pretenses.
- Punishments range from three years of imprisonment for general cheating to seven years of imprisonment if the deception involves valuable securities.
- Cheating with intent to cause wrongful loss to a person whose interests are protected by law or contract leads to a longer punishment (up to five years).
Section 318’s provisions aim to address fraudulent activities that cause significant harm and damage to others, particularly through deception for personal gain. The severity of the punishment reflects the seriousness of the deceptive conduct and its potential impact on the victim.
