Cheating and Fraud might be taken sometimes as being interchangeable in common language. Yet the Indian Law provides for these two offences in separate sections of the Constitution. To protect the interests of the people and maintain order in the society the government has lain down asset of norms that are described under IPC.

The Indian Penal Code (IPC) explains the provisions about the offences of fraud under Sections from 421 to 424.

Section 421

  • Any person who fraudulently or dishonestly conceals, removes or delivers or transfer or causes the transfer of any property to another person
  • Or anyone who has deceitfully / fraudulently, had concealed or had removed or had delivered or had transferred or had caused to be transferred any property, without appropriate consideration
  • The mentioned concealment or removal or delivery or transfer was done to prevent the distribution of that property, as per the law among the creditors of accused person or the creditors of another person.
  • The punishment for fraud is imprisonment of either description for a term which may extend to two years or fine or both.
  • The fraudster shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both
  • The act is non-cognizable, bailable, triable by any Magistrate, compoundable by the creditor who is affected but only with the permission of the court.

Section 422

  • Any person who fraudulently or dishonestly makes omissions or performs an act, whereby the act or omission done by him creates a situation where no amount is made available as per law for the payment of his debts or the debts of another person.
  • The punishment for cheating is imprisonment of either description for a term which may extend to two years or fine or both.

Section 423

  • Any person who has fraudulently or dishonestly executed, signed, or became a party to any instrument or deed.
  • The said instrument or deed implies to transfer or create a charge upon the concerned property or charge on interest on the involved property.
  • The concerned deed or instrument contains a false statement related to the consideration of such charge or transfer or a false statement related to the person or persons for whose benefit or use the deed is intended to operate.
  • The punishment for cheating is imprisonment of either description for a term which may extend to two years or fine or both.

Section 424

  • Any person who has fraudulently or dishonestly removed, or concealed any property of himself or another person
  • Anyone who has fraudulently or dishonestly assisted in the removal or concealment of   a property of himself or another person
  • Any individual who has dishonestly or fraudulently given up or released any claim or demand to which he is entitled
  • The punishment for cheating is imprisonment of either description for a term which may extend to two years or fine or both.