Section 318 BNS: Cheating and Its Punishment (Old IPC 420)
October 18, 2026 · 7 min read
"420" was so well known that it became a word for a cheat. Since 1 July 2024 that offence sits in Section 318(4) of the Bharatiya Nyaya Sanhita, 2023. The BNS took four separate IPC sections on cheating and put them into one section with four sub-sections. Along the way it raised the punishment for the smaller kinds of cheating.
Here is what Section 318 says, how the old numbers map to the new ones, what has to be proved, and how bail and settlement work.
What Section 318 says
- 318(1)defines cheating: deceiving someone and, through that, fraudulently or dishonestly getting them to hand over property or let someone keep it, or intentionally getting them to do or not do something they otherwise wouldn't, which causes or is likely to cause them harm in body, mind, reputation or property. Dishonestly hiding facts counts as deceiving.
- 318(2) punishes cheating with up to three years, or fine, or both.
- 318(3) covers cheating a person whose interest you were bound by law or contract to protect, like an agent cheating the principal. Up to five years, or fine, or both.
- 318(4) covers cheating that makes the person hand over property, or make, change or destroy a valuable security. Up to seven years and a fine. This is the old IPC 420.
Old IPC sections and their new BNS numbers
| Offence | IPC | BNS | Max under IPC | Max under BNS |
|---|---|---|---|---|
| Cheating (definition) | 415 | 318(1) | Definition | Definition |
| Cheating | 417 | 318(2) | 1 year | 3 years |
| Cheating a person whose interest you were bound to protect | 418 | 318(3) | 3 years | 5 years |
| Cheating and dishonestly inducing delivery of property | 420 | 318(4) | 7 years and fine | 7 years and fine |
| Cheating by personation (definition) | 416 | 319(1) | Definition | Definition |
| Cheating by personation | 419 | 319(2) | 3 years | 5 years |
The new maximums apply only to acts done on or after 1 July 2024. Anything done before that is still charged under the IPC, with the old punishment. For any other section, the IPC to BNS converter gives the new number and what changed.
What has to be proved
The prosecution has to show four things:
- the accused deceived the person, by a false statement or by hiding facts;
- the deception was fraudulent or dishonest, or intentional;
- because of it, the person handed over property or did or didn't do something; and
- for 318(4), that the person was induced to deliver property or a valuable security.
The key point is timing. The dishonest intention has to exist at the start, when the promise was made. In Hridaya Ranjan Prasad Verma v. State of Bihar (2000) the Supreme Court said that a failure to keep a promise later on is not cheating unless the intention to deceive was there from the beginning. S.W. Palanitkar v. State of Bihar (2002) said the same.
Cheating, breach of contract and breach of trust
These three get mixed up all the time, and the difference decides whether a criminal case survives.
- Breach of contractis a civil wrong. A buyer who doesn't pay, or a builder who delivers late, has broken a contract. That alone is not a crime.
- Cheating is when the person was tricked into handing over the property or money in the first place.
- Criminal breach of trust under Section 316 of the BNS, the old IPC 406, is when property was handed over honestly and later misused. In Delhi Race Club v. State of Uttar Pradesh (2024) the Supreme Court explained that the two offences rest on different facts and the police should not add both by default.
High Courts regularly quash cheating FIRs that are really money recovery disputes. If yours is one, a civil suit may be the better route. The limitation calculator gives the last date to file a suit for money, and the court fee calculator works out the fee on it.
Bail and settlement
| BNS | Cognizable | Bailable | Can be compounded |
|---|---|---|---|
| 318(2) | No | Yes | Yes, by the person cheated |
| 318(3) | No | Yes | Yes, with the court's permission |
| 318(4) | Yes | No | Yes, with the court's permission |
For 318(2) and 318(3), which are non-cognizable, the police can't investigate without a Magistrate's order. For 318(4), they register an FIR. Our guide to filing an FIR under Section 173 BNSS explains what to do if they refuse. Cheating by personation under Section 319(2) can also be compounded by the person cheated.
If you are the accused, you can apply for anticipatory bail under Section 482 of the BNSS. Courts look at the amount involved, whether the money has been returned or offered, and whether the dispute is really civil.
Online fraud and cheating
UPI scams, fake investment apps and job fraud are usually charged under Section 318(4) together with Section 66D of the Information Technology Act, which punishes cheating by personation using a computer resource with up to three years and a fine of up to one lakh rupees. Report it on the national helpline 1930 or at cybercrime.gov.in as soon as you can. Banks can freeze the money only while it is still in the chain.
A bounced cheque is a different matter. It is handled under Section 138 of the Negotiable Instruments Act, and the first step is a legal notice within 30 days.
Questions people ask
Is Section 318(4) BNS bailable?
No. Cheating under 318(4), the old IPC 420, is cognizable and non-bailable, and it is tried by a Magistrate of the first class. Non-bailable doesn't mean bail is refused. It means bail is up to the court. Because the maximum is seven years, arrest is not automatic either: the police can issue a notice to appear under Section 35 of the BNSS instead, as the Supreme Court required in Arnesh Kumar v. State of Bihar (2014). You can also seek anticipatory bail under Section 482 of the BNSS.
What is the punishment for cheating under the BNS?
It depends on the sub-section. Simple cheating under 318(2) carries up to three years, or fine, or both. Cheating someone whose interest you were bound to protect, under 318(3), carries up to five years. Cheating that makes someone hand over property or a valuable security, under 318(4), carries up to seven years and a fine.
Is a cheating case civil or criminal?
It can be both. Cheating is a crime, and the person cheated can also file a civil suit to recover the money. But a broken promise or an unpaid bill is not cheating by itself. The Supreme Court has said many times that the intention to deceive must exist when the promise was made, and that criminal cases should not be used to recover a purely civil debt.
Can a cheating case be settled?
Yes. Under Section 359 of the BNSS, simple cheating under 318(2) can be compounded by the person cheated without the court's permission. Cheating under 318(3) and 318(4) can be compounded only with the court's permission. If the case is past that stage, the High Court can quash it after a settlement under Section 528 of the BNSS, since cheating is mostly a private wrong.
Reading an old FIR that says "420"? The IPC 420 page shows the new section side by side with the old text.
This is general information, not legal advice. Check the bare Act and speak to a lawyer about your own case.
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