BNS Section 318

BNS Section 318 deals with cheating, specifically, fraudulently or dishonestly inducing someone to deliver property or consent to its retention. It outlines the offense of cheating and the potential penalties, including imprisonment and fines.

(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 diamond 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.

Example:
Vijay makes a deal with Rakesh to supply him a Swiss made luxury watch, in exchange for Rs. 1,00,000/- Instead, Vijay delivers to Rakesh a cheap replica in exchange for the money, thereby deceiving Rakesh. Vijay is guilty of the offence under this Section.

Key Points:
Cheating:
Cheating is defined as deceiving a person in such a way that induces them to act, or fail to act, in a way they normally would not, which results in harm to their body, mind, reputation, or property.
The act of deception is carried out fraudulently or dishonestly, with the goal of causing the victim to:
Deliver property to another person,
Consent to retain property in possession of another person, or
Perform or omit an act that leads to harm or damage.

Elements of Cheating:
Deception: The key element is that the accused must deceive the victim. Deception involves making false representations, concealing facts, or using any fraudulent method to trick the victim.
Inducement: After being deceived, the victim is induced to deliver property or act in a way that causes harm. This inducement could involve convincing the victim to transfer ownership or possession of property or perform an action they otherwise wouldn’t.
Harm or Damage: The result of the act of cheating must lead to or be likely to cause harm or damage to the victim's body, mind, reputation, or property. Harm could include:
Financial loss (property),
Physical injury (body),
Emotional or psychological trauma (mind),
Damage to the person's social standing (reputation).

Fraudulent or Dishonest Intent:
For an act to qualify as cheating, the deception must be carried out with a fraudulent or dishonest intent. The offender must have an intention to gain unfairly or cause loss to the victim.
Fraudulent intent refers to using deceit for personal gain, while dishonest intent involves acting with the knowledge that the victim will suffer harm or loss.

Property:
Property refers to anything of value that can be transferred or retained. It may include:
Movable or immovable property (such as land, vehicles, or goods),
Intangible property (such as intellectual property or financial assets).
The person being deceived can either deliver this property to someone else or consent that another person unlawfully retains the property.

Act or Omission:
Cheating can also include inducing the victim to do something they would not have done if they were not deceived. For example, signing a contract, transferring funds, or performing a specific task.
Alternatively, the deception can cause the victim to omit an action that they otherwise would have done. This could include neglecting to take legal action, failing to recover owed debts, or missing opportunities for safeguarding their interests.

Intentional Inducement:
The offender must have the intention to induce the victim into a specific act or omission through deception. This inducement can occur through:
False representation of facts,
Concealment of important information, or
Manipulation of circumstances.

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