420 vs 318
The iconic IPC Section 420 (Cheating) is renumbered to BNS Section 318. The law is substantively identical — dishonest inducement to deliver property remains the core — but the cultural shorthand "420" is now legally obsolete.
What Changed?
IPC had separate sections: 415 (definition), 416 (cheating by personation), 417 (punishment-simple), 420 (punishment-aggravated). BNS 318 consolidates all into one section.
Core offence — deceiving a person to dishonestly induce delivery of property — is unchanged.
BNS 318 explicitly covers "electronic means," making digital cheating, UPI fraud, and online scams clearly within scope.
Two-tier punishment preserved: up to 3 years for simple cheating, up to 7 years (Non-Bailable) for cheating involving property delivery.
The cultural term "Section 420" is legally obsolete for crimes after July 1, 2024 — prosecutors must cite BNS 318.
Verdict
"Decades of public familiarity with "420" as fraud shorthand must now shift to "BNS 318". The legal standard — deceit + dishonest inducement + delivery of property — is fully preserved, covering digital fraud, UPI scams, and online investment frauds."
Detailed Analysis
420
Cheating and dishonestly inducing delivery of property
318
Cheating
Legal Implications
Practical Scenarios
"Creating a fake investment app promising 30% returns and collecting crores from investors — BNS 318 aggravated cheating, up to 7 years."
"A contractor taking advance payment with no intention of completing work — BNS 318 if original intent was fraudulent (not merely if he later failed)."
"Sending a fake UPI payment screenshot to a shopkeeper to collect goods — BNS 318 + IT Act Section 66D."
"A matrimonial scammer posing as an NRI engineer to extract money — BNS 318 aggravated (property delivery)."
"A company director who takes investor funds knowing the project is fraudulent from day one — BNS 318 + criminal conspiracy (BNS 61)."
Expert Q&A
Is IPC Section 420 now BNS Section 318?
Yes. For offences committed on or after July 1, 2024, cheating must be charged under BNS Section 318. IPC 420 continues to apply to offences committed before July 1, 2024. Both statutes will run in parallel courts for years until all old cases are disposed of.
What is the punishment for cheating under BNS 318?
Two tiers: (1) Simple cheating — up to 3 years imprisonment or fine or both. Bailable. (2) Aggravated cheating — where the accused dishonestly induces the victim to deliver property or alter a valuable security — up to 7 years + Fine. Non-Bailable. The aggravated category (equivalent to old IPC 420) is the most commonly invoked.
Does BNS 318 cover online fraud, UPI scams, and cyber cheating?
Yes, explicitly. BNS 318 includes electronic means in its text, making UPI fraud, phishing, fake e-commerce, WhatsApp investment scams, and OTP fraud unambiguously covered. Under IPC this required reading Section 420 with IT Act Section 66D — BNS 318 eliminates this technical step.
How do courts distinguish cheating from a civil business dispute?
The Supreme Court in R.K. Vijayasarathy (2019) established the governing test: dishonest intent must exist at the inception of the transaction, not merely appear later when payment fails. A businessman who genuinely tried but failed is NOT a cheat — only if he entered the deal knowing he could not or would not perform is it criminal. Section 318 cases failing this threshold are civil suits, not FIRs.
How do I file a cheating complaint under BNS 318?
Step 1: File an FIR at the local police station in whose jurisdiction the offence occurred (or where the property was delivered). Include all proof — messages, payment receipts, correspondence. Step 2: If police refuse to file FIR, approach the Magistrate under Section 156(3) BNSS (former CrPC). Step 3: For online fraud, also report to the Cyber Crime portal (cybercrime.gov.in) and the bank's fraud team for transaction reversal. BNS 318 aggravated is cognizable — police can investigate without magistrate's order.
Can a company or its directors be charged with cheating under BNS 318?
Yes. Directors, partners, managers, and company officers who directly participate in the fraudulent scheme can be individually charged under BNS 318. A company itself can also be prosecuted (corporate criminal liability). Courts look at whether the individual officer actually authorised or participated in the deception — passive shareholders generally cannot be named just for their company position.
Is there a time limit (limitation period) to file a cheating complaint?
Under the BNSS (Section 468, equivalent to old CrPC 468): For offences punishable up to 3 years — 3-year limitation period from the date of offence. For offences punishable above 3 years (like BNS 318 aggravated at 7 years) — no limitation period under BNSS. However, delay in filing weakens the complaint as courts look at timeliness as a credibility factor.
What elements must be proved to secure conviction under BNS 318?
Four elements: (1) Deception — the accused made a false representation of fact. (2) Dishonest inducement — the deception caused the victim to deliver property, sign documents, or take a detrimental action. (3) Dishonest intent from inception — not later regret or business failure. (4) Delivery of property or alteration of document (for aggravated tier). All four must be proved beyond reasonable doubt. Default or mere non-payment alone without proof of original fraudulent intent is insufficient.
Is BNS 318 (cheating by personation) a separate offence from basic cheating?
Under IPC, cheating by personation was a separate Section 416. Under BNS 318, it is consolidated into the same section. Personation (pretending to be another person — an NRI, a government official, a celebrity) is a specific mode of cheating that automatically satisfies the deception element, making conviction easier where identity fraud is involved.
Related IPC Sections
Related BNS Sections
Legal Glossary
Related Legal Terms
The guilty mind — the mental element or criminal intent required for an act to constitute a crime.
latinThe guilty act — the physical act or omission that constitutes the external element of a crime.
latinAn offence for which police can arrest without a warrant and investigate without prior magistrate permission.
criminalThe first written document recording information about a cognizable offence, lodged with police to set criminal law in motion.
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