Side-by-Side Comparison

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

OLD LAW (IPC)

420

Act of 1860

Cheating and dishonestly inducing delivery of property

Whoever cheats and thereby dishonestly induces the person 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, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Punishment7 years + Fine

REFORM

NEW LAW (BNS)

318

Act of 2024

Cheating

Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person... commits cheating.

PunishmentUp to 3 years (simple) / 7 years (aggravated) + Fine

1860

420 Origin

2024

318 Reform

Legal Implications

Section 420 of the IPC became so synonymous with fraud that "420" entered everyday Indian language. Under the BNS, cheating is now Section 318. The legal definition — deceiving a person and thereby dishonestly inducing them to deliver property, consent to retention of property, or undertake a harmful act or omission — is completely preserved. What changes is the structure: IPC scattered the law across 415, 416, 417, and 420. BNS 318 brings everything under one section with a clean two-tier punishment. The major substantive addition is the explicit mention of electronic means — UPI fraud, phishing, fake investment platforms, WhatsApp scams, and online matrimonial fraud are unambiguously covered. The Supreme Court's test (R.K. Vijayasarathy, 2019) — that dishonest intent must exist from inception, not just when the deal soured — continues to apply to distinguish criminal cheating from civil breach of contract.

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."

"Sending a fake UPI payment screenshot to a shopkeeper to collect goods — BNS 318 + IT Act."

"A matrimonial scammer posing as an NRI engineer to extract money — BNS 318."

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.

Has the punishment for cheating changed in BNS 318?

No change in maximum punishment. Simple cheating: up to 3 years. Aggravated cheating (involving property delivery): up to 7 years + Fine, Non-Bailable. The structure is identical to IPC 417 and 420.

Does BNS 318 cover online fraud and UPI scams?

Yes. BNS 318 explicitly includes electronic means, making online fraud, UPI scams, fake websites, and phishing clearly covered. These were also covered under IPC 420 read with the IT Act, but BNS 318 makes digital cheating unambiguous.

How do courts distinguish cheating from a business dispute?

The Supreme Court in R.K. Vijayasarathy v. Sudha Seetharam (2019) held that cheating requires dishonest intent from inception. A businessman who genuinely tried but failed is not a cheat — a fraudster who took money knowing he could not or would not deliver is. The same standard applies under BNS 318.

Can I still call someone a "420"?

In casual speech, yes. But in legal filings for offences after July 1, 2024, only BNS 318 applies. "420" has no legal meaning under the BNS.

Related IPC Sections

415 : Cheating Definition...406 : Criminal Breach of Trust...120B : Criminal Conspiracy...

Related BNS Sections

316 : Criminal Breach of Trust...351 : Criminal Intimidation...

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