BNS Section 318 — Cheating
CHAPTER XVII OF OFFENCES AGAINST PROPERTY — Of cheating
Criminal
Summary
Sub-section (1) defines the offence of cheating. A person cheats if, by deceiving someone, they fraudulently or dishonestly get that deceived person to deliver any property to anyone, or to consent that anyone may keep any property. Cheating also occurs if the person intentionally gets the deceived person to do something, or omit to do something, that they would not have done or omitted if not deceived, and that act or omission causes, or is likely to cause, damage or harm to that person in body, mind, reputation, or property.
The Explanation states that dishonestly concealing facts counts as deception under this section.
The Illustrations give examples of cheating: (a) falsely pretending to be in the Civil Service to get goods on credit without intending to pay; (b) putting a counterfeit mark on an article to make someone believe it was made by a famous manufacturer and pay for it; (c) showing a false sample of an article to make someone believe the article matches the sample and pay for it; (d) tendering a bill from a house with no money, expecting it to be dishonoured, to get an article without intending to pay; (e) pledging articles known not to be diamonds as diamonds to get a loan; (f) deceiving someone into believing repayment is intended when it is not, to get a loan; (g) deceiving someone into believing delivery of indigo plant is intended when it is not, to get an advance, but if the person intends to deliver at the time of obtaining the money and later breaks the contract, it is not cheating but only a civil breach of contract; (h) deceiving someone into believing a contract has been performed when it has not, to get payment; (i) selling an estate to one person and then, knowing there is no right left, selling or mortgaging it to another without disclosing the earlier sale, to get money.
Sub-section (2) states the punishment for cheating: imprisonment of either description for a term up to three years, or a fine, or both.
Sub-section (3) provides a higher punishment where a person cheats knowing that they are likely to cause wrongful loss to someone whose interest in the transaction they were bound, by law or by legal contract, to protect. The punishment is imprisonment of either description for a term up to five years, or a fine, or both.
Sub-section (4) provides an even higher punishment where cheating involves dishonestly inducing the deceived person to deliver any property to anyone, or to make, alter, or destroy the whole or any part of a valuable security, or anything signed or sealed that can be converted into a valuable security. The punishment is imprisonment of either description for a term up to seven years, and the person is also liable to a fine.
Official Text
(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.
Related Provisions
cheating
fraud (cheating / criminal breach of trust)
Related Judgments
- SC (2025) Vol.3 p.1309 — Supreme Court of India (2025)
- SC (2025) Vol.11 p.291 — Supreme Court of India (2025)
- SC (2024) Vol.8 p.670 — Supreme Court of India (2024)
- SC (2025) Vol.7 p.105 — Supreme Court of India (2025)
- SC (2025) Vol.6 p.280 — Supreme Court of India (2025)
- SC (2025) Vol.3 p.1531 — Supreme Court of India (2025)
- SC (2024) Vol.6 p.129 — Supreme Court of India (2024)
- SC (2025) Vol.4 p.2730 — Supreme Court of India (2025)