Section 322 BNS: Dishonest or fraudulent execution of deed of transfer containing false statement of consideration
Bharatiya Nyaya Sanhita, 2023
Section 322 BNS at a Glance
Section 322 BNS deals with dishonest or fraudulent execution of deed of transfer containing false statement of consideration. It is bailable and non-cognizable, triable by any Magistrate; it replaced Section 423 IPC on 1 July 2024.
Imprisonment of either description for a term which may extend to three years.
Section 322 BNS Bare Act Text
322. Dishonest or fraudulent execution of deed of transfer containing false statement of consideration
Whoever dishonestly or fraudulently signs, executes or becomes a party to any deed or instrument which purports to transfer or subject to any charge any property, or any interest therein, and which contains any false statement relating to the consideration for such transfer or charge, or relating to the person or persons for whose use or benefit it is really intended to operate, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.
Source: Section 322, Bharatiya Nyaya Sanhita, 2023
Section 322 BNS in Simple Words
Section 322 of the Bharatiya Nyaya Sanhita (BNS) deals with a person who dishonestly or fraudulently signs, executes, or becomes a party to any deed or instrument that purports to transfer or subject to any charge any property, or any interest in property, when that document contains a false statement about the consideration or about the person for whose use or benefit it is really intended to operate. The offence is punishable with imprisonment of either description for up to three years, or with fine, or with both.
It is often seen in land, inheritance, and family property disputes where parties misstate the consideration or conceal the true beneficiary in a transfer or charge deed to mislead others. The law matters because property papers carry real legal force, and a dishonest transfer or charge deed containing false recitals can create serious civil and criminal consequences. It protects ownership, possession, and title from fraudulent manipulation.
Ingredients of Section 322 BNS
- Signing, executing, or becoming a party to a deed or instrument of transfer or charge
- Inclusion in the deed of a false statement of consideration or an untrue recital of the intended beneficiary
- Dishonest or fraudulent intention accompanying the transaction
- Punishment under Section 322 BNS of imprisonment of either description for up to three years, or with fine, or with both
Punishment Under Section 322 BNS
Imprisonment of either description for a term which may extend to three years.
The court may impose fine alone, or fine in addition to imprisonment.
Dishonest or fraudulent execution of a transfer deed containing a false statement of consideration carries imprisonment of either description up to three years, or fine, or both.
Example of Section 322 BNS
When Section 322 BNS Does Not Apply
- The deed or instrument accurately stated the full consideration and the true person for whose benefit the transfer was executed
- The transaction was an informal oral understanding without any formal deed or instrument executed or signed by the parties
- The variation between the market valuation and the stated price was an honest error or estimation made without dishonest intention
- The accused signed the document in good faith without any dishonest or fraudulent intention
Section 322 BNS in the IPC (Previous Law)
Section 322 BNS replaces Section 423 IPC from the old criminal code.
Section 423 IPC corresponds to Section 322 BNS. Section 322 BNS reproduces the definition and ingredients of Section 423 IPC regarding execution of transfer instruments containing a false statement of consideration or an untrue recital of beneficiary, but increases the maximum imprisonment from two years under Section 423 IPC to three years under Section 322 BNS. The offence remains punishable with fine, or with both.
View IPC Section 423 →FAQs on Section 322 BNS
What kind of document is covered under Section 322 BNS?▼
It covers any deed or instrument that purports to transfer or subject to any charge any property or interest in property, and that contains a false statement regarding the consideration or the person for whose use or benefit it is really intended to operate.
Under Section 322 BNS, does there have to be actual loss to the owner?▼
Actual loss helps the prosecution, but the core issue is the dishonest or fraudulent execution of the document containing the false statement of consideration or beneficiary. The law focuses on the intention and the misleading nature of the deed.
Is Section 322 BNS the same as forgery?▼
No, not exactly. Forgery usually concerns making a false document, while Section 322 BNS concerns dishonestly or fraudulently executing a transfer or charge deed that contains a false statement about the consideration or intended beneficiary, even where the document is otherwise genuine in form.
Is the offence under Section 322 BNS bailable?▼
Yes, it is generally a bailable offence. That means the accused can usually seek bail as a matter of right, subject to the court's process and conditions.
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Sources: Bare Act Text, Bharatiya Nyaya Sanhita, 2023 · Last updated: 16 Oct 2026 ·