Section 318 BNS: Cheating (Old IPC 420) Explained 2026

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Section 318 of the Bharatiya Nyaya Sanhita, 2023 (BNS) is the provision on cheating. Sub-section (1) defines cheating, and sub-sections (2), (3) and (4) prescribe punishment of up to 3, 5 and 7 years respectively. Section 318(4) is the new equivalent of the old Section 420 IPC, which covers cheating that dishonestly induces delivery of property.

Where Section 318 fits in the BNS

The BNS came into force on 1 July 2024 and replaced the Indian Penal Code, 1860. Under the IPC, cheating was spread across several sections: Section 415 gave the definition, Section 417 punished simple cheating, Section 418 dealt with cheating a person whose interest the accused was bound to protect, and Section 420 dealt with cheating with delivery of property.

The BNS consolidates all of these into one section with four sub-sections. Cheating by personation, which was Section 416 (definition) and Section 419 (punishment) of the IPC, now sits separately in Section 319 BNS.

The four sub-sections of Section 318

Section 318(1): definition of cheating

A person cheats when, by deceiving someone, he either:

• fraudulently or dishonestly induces the deceived person to deliver property to any person, or to consent that any person shall retain property; or
• intentionally induces the deceived person to do or omit to do something he would not have done or omitted had he not been deceived, where that act or omission causes or is likely to cause “damage or harm to that person in body, mind, reputation or property”.

The Explanation adds that a dishonest concealment of facts is also deception. So silence can amount to cheating when there is a duty to disclose and the facts are hidden dishonestly.

Section 318(2): punishment for simple cheating

Imprisonment of either description up to 3 years, or fine, or both. Under the old Section 417 IPC, the maximum was only 1 year.

Section 318(3): cheating a person whose interest one must protect

This applies when the accused cheats knowing that he is likely to cause wrongful loss to a person whose interest in the transaction he was bound to protect, either by law or by a legal contract. Examples: a trustee, agent or guardian. Punishment: up to 5 years, or fine, or both. The old Section 418 IPC provided up to 3 years.

Section 318(4): cheating and dishonestly inducing delivery of property

This is the aggravated form and the direct successor of Section 420 IPC. It applies when the person cheated is dishonestly induced to deliver property to any person, or to make, alter or destroy a valuable security (or anything signed or sealed that can be converted into a valuable security). Punishment: imprisonment of either description up to 7 years, and the accused “shall also be liable to fine”. Fine is mandatory here, exactly as under Section 420.

IPC 420 vs BNS 318: mapping table

Ingredients the prosecution must prove

For an offence under Section 318, courts look for the following elements:

• Deception: a false representation, or dishonest concealment of facts, made to the victim.
• Inducement: the victim acted (or refrained from acting) because of that deception.
• Fraudulent or dishonest intention at the time of inducement: the guilty mind must exist when the promise or representation is made, not develop later.
• Result: delivery or retention of property, or an act or omission that causes or is likely to cause harm to body, mind, reputation or property.

The third ingredient decides most cheating cases in practice. The Supreme Court has repeatedly held, under the IPC provisions that Section 318 carries forward, that a mere breach of contract is not cheating unless dishonest intention existed from the very beginning of the transaction. In Hridaya Ranjan Prasad Verma v. State of Bihar, (2000) 4 SCC 168, proceedings were quashed because the complaint did not show such intention at inception. The same line appears in V.Y. Jose v. State of Gujarat (2009) and Anil Mahajan v. Bhor Industries Ltd. (2005). Since the language of Section 318 follows Sections 415 to 420 IPC, these precedents continue to guide courts.

Classification: cognizable, bailable and compounding

The First Schedule of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) classifies the offences as follows:

Section 359 BNSS replaces Section 320 CrPC. Its first table lists offences that can be compounded without the court’s permission, and its second table lists those that need permission. Section 318(2) is in the first table; Sections 318(3) and 318(4) are in the second.

Illustrations in plain words

• A falsely claims to be a government officer and obtains goods on credit he never intends to pay for. This is cheating with delivery of property, so Section 318(4).
• A agrees to supply goods, takes an advance honestly, and later fails because his business collapses. Without dishonest intention at the start, this is a civil dispute, not cheating.

Exam angle

• Section mapping: The most common MCQ is “IPC 420 corresponds to which BNS section?” Answer: Section 318(4). Also remember 415 to 318(1), 417 to 318(2) and 418 to 318(3).
• Enhanced punishment: Judiciary prelims and AIBE like to test which punishments went up: simple cheating from 1 to 3 years and Section 418-type cheating from 3 to 5 years. Section 420-type cheating stays at 7 years with mandatory fine.
• Personation: Cheating by personation is Section 319, not Section 318. Examiners use it as a distractor.
• Civil versus criminal: Judiciary mains and CLAT problem-based questions often give a failed contract and ask whether cheating is made out. Focus on intention at the time of inducement.
• Procedure: UGC NET and judiciary papers ask about compounding: Section 318(2) without permission, Sections 318(3) and 318(4) with permission, under Section 359 BNSS.

Quick quiz

Practise more

Section numbers under the BNS, BNSS and BSA are now asked in every law exam. Our New Criminal Laws Guide maps every IPC, CrPC and Evidence Act section to its new number, and the free AIBE XXII mock tests them under exam timing.

Sources

• Bharatiya Nyaya Sanhita, 2023: Sections 318 and 319 (India Code)
• Bharatiya Nagarik Suraksha Sanhita, 2023: Section 359 and the First Schedule
• Indian Penal Code, 1860: Sections 415 to 420
• Supreme Court of India: Hridaya Ranjan Prasad Verma v. State of Bihar, (2000) 4 SCC 168