Whoever dishonestly or fraudulently signs, executes or becomes a party to any deed or instrument which purports to transfer or subject to any charge any property, or any interest therein, and which contains any false statement relating to the consideration for such transfer or charge, or relating to the person or persons for whose use or benefit it is really intended to operate, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.
Simplified Explanation
IPC Section 423 deals with the offence of dishonestly or fraudulently executing a deed of transfer of property that contains a false statement regarding the consideration involved. This section applies when an individual intending to deceive creates or signs a legal document transferring property ownership while falsely representing the value or consideration exchanged. The aim is to prevent property transaction fraud and ensure that such transactions are conducted transparently and honestly.
Is IPC Section 423 bailable?
IPC Section 423 is bailable. The offence involves financial deceit rather than physical harm, allowing for the possibility of bail under judicial discretion.
IPC Section 423 Punishment
The punishment under IPC Section 423 involves imprisonment of either description for a term extending to two years, with a fine, or with both. The severity of the penalty reflects the importance of maintaining integrity in legal property transactions and deterring fraudulent activities.
Example of IPC Section 423
A real-life example of IPC Section 423 involved a property seller who executed a deed of transfer for a plot of land. The deed falsely stated that the consideration amount was significantly higher than what was paid. The seller did this to evade taxes and to make the transaction appear legitimate for a larger loan application. When the discrepancy was discovered during a routine audit by the tax authorities, an investigation revealed the fraud. The seller was arrested and charged under IPC Section 423 for executing a transfer deed with a false statement of consideration. In court, he was found guilty and sentenced to one year in prison and fined, emphasizing the consequences of engaging in deceitful practices in property transactions.
