Supreme Court · 2000
Hridaya Ranjan Prasad Verma v. State of Bihar
(2000) 4 SCC 168
Cheating needs a dishonest intention at the moment the promise is made. A promise broken later is a civil dispute, not an offence.
2-judge bench
BNS § 318 · In force since 1 July 2024
Section 318 BNS — Cheating
Replaces IPC 415, 417, 418 and 420. The definition of cheating is unchanged; the punishment for simple cheating goes up from one year to three.
Text checked against the Gazette, 9 Oct 2026 — advocate review pendingUpdated 9 Oct 2026Text: Bharatiya Nyaya Sanhita, 2023
In short
- Replaces
- IPC 420 — and 415, 417, 418, folded into one section
- Punishment
- Up to 7 years and fine, under 318(4)
- Bail
- 318(4): non-bailable · cognizable · Magistrate of the first class
- Which law applies
- Offence before 1 July 2024 → IPC 420. On or after → BNS 318(4).
The 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.
(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.
Sub-section (1) is followed by nine illustrations, (a) to (i), in the Act.
Source: Official BNS Gazette text. BNSS First Schedule and savings provision. NCRB old-to-new section table.
What changed from the IPC
Four IPC sections became one. Two punishments went up; the wording of 420 did not move.
IPC 417
… may extend to one year, or with fine, or with both.
BNS 318(2)Punishment raised
… may extend to three years, or with fine, or with both.
IPC 418
… may extend to three years, or with fine, or with both.
BNS 318(3)Punishment raised
… may extend to five years, or with fine, or with both.
IPC 420
Whoever cheats and thereby dishonestly induces the person deceived to deliver any property … up to seven years, and shall also be liable to fine.
BNS 318(4)No change in wording
Same words. Renumbered only.
Bail, cognizance and court
| Section | Offence | Punishment | Cognizable | Bail | Tried by |
|---|---|---|---|---|---|
| 318(2) | Cheating | 3 yrs, or fine, or both | No | Bailable | Any Magistrate |
| 318(3) | Cheating a person whose interest you must protect | 5 yrs, or fine, or both | No | Bailable | Any Magistrate |
| 318(4) | Cheating and dishonestly inducing delivery of property | 7 yrs and fine | Yes | Non-bailable | Magistrate of the first class |
BNSS, First Schedule. Compoundable: 318(2) by the person cheated; 318(3) and 318(4) with the court’s permission (BNSS s. 359).
Which law applies
Which section do I charge?
IPC 420
Offence committed on or before 30 June 2024. FIR may be later.
BNS 318(4)
Offence committed on or after 1 July 2024.
The date of the offence decides it — not the date of the FIR or charge-sheet (BNS s. 358; Article 20(1) of the Constitution).
How courts read it
Three Supreme Court rulings that come up in most 318 quash and bail hearings.
Supreme Court · 2007
Inder Mohan Goswami v. State of Uttaranchal
(2007) 12 SCC 1
A cheating FIR can be quashed when the dispute is really civil and the complaint is being used to pressure the other side.
3-judge bench
Supreme Court · 2015
Vesa Holdings Pvt. Ltd. v. State of Kerala
(2015) 8 SCC 293
Every breach of contract is not cheating. The deceit has to be shown from the start of the transaction.
2-judge bench
Charged together with 318
Questions advocates ask
Is 420 IPC bailable?
No. IPC 420, and now BNS 318(4), is non-bailable and cognizable; bail is at the court’s discretion. Because the maximum is seven years, police must meet the conditions of BNSS s. 35(1)(b) before arresting, and otherwise issue a notice of appearance under s. 35(3).
Is a cheque bounce case also cheating under 318?
Not by itself. A dishonoured cheque is an offence under s. 138 NI Act. It is cheating only if the deceit existed when the cheque was given.
Can a 318 FIR be quashed after a settlement?
Often, yes. 318(4) is compoundable with the court’s permission, and High Courts quash under s. 528 BNSS where the dispute is private and settled.