Section 323 BNS: Dishonest or fraudulent removal or concealment of property

Bharatiya Nyaya Sanhita, 2023

Section 323 BNS at a Glance

Section 323 BNS deals with dishonest or fraudulent removal or concealment of property. It is bailable and non-cognizable, triable by any Magistrate; it replaced Section 424 IPC on 1 July 2024.

Punishment

Imprisonment of either description for a term which may extend to three years.

Bailable ⓘNon-Cognizable ⓘCompoundable ⓘ🏛️ Any Magistrate ⓘ
IPC Equivalent

Section 424 →

Section 323 BNS Bare Act Text

323. Dishonest or fraudulent removal or concealment of property

Whoever dishonestly or fraudulently conceals or removes any property of himself or any other person, or dishonestly or fraudulently assists in the concealment or removal thereof, or dishonestly releases any demand or claim to which he is entitled, 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 323, Bharatiya Nyaya Sanhita, 2023

Section 323 BNS in Simple Words

Section 323 of the Bharatiya Nyaya Sanhita (BNS) punishes anyone who dishonestly or fraudulently conceals or removes any property belonging to themselves or to any other person. It also punishes anyone who dishonestly or fraudulently assists in concealing or removing such property, or who dishonestly releases any demand or claim to which they are entitled.

Unlike provisions that apply only during court execution proceedings, this section covers dishonest or fraudulent concealment or removal of property, or dishonest release of a legal claim, more broadly. It can apply to an owner, a debtor, a co-owner, or a third party who helps hide or shift the property.

Mere movement of property or a genuine settlement of a claim is not enough. The prosecution must prove that the concealment, removal, assistance, or release of claim was done dishonestly or fraudulently.

Ingredients of Section 323 BNS

  • Concealment or removal of property, assisting therein, or dishonest release of any claim or demand
  • Property belonging either to the accused or to any other person
  • Dishonest or fraudulent intention behind the act
  • Punishment under Section 323 BNS of imprisonment of either description for up to three years, or with fine, or with both

Punishment Under Section 323 BNS

Imprisonment

Imprisonment of either description for a term which may extend to three years.

Fine

The court may impose fine alone, or fine in addition to imprisonment.

Bailable ⓘNon-Cognizable ⓘCompoundable ⓘ🏛️ Any Magistrate ⓘ

Dishonest or fraudulent concealment or removal of property, assisting therein, or dishonest release of a demand or claim carries imprisonment of either description up to three years, or fine, or both.

Example of Section 323 BNS

Pramod faced imminent execution of an arbitral money award obtained by a building contractor in Dhanbad. To prevent the contractor from recovering the awarded sum, Pramod shifted industrial generators from his work site into a secluded godown belonging to his associate Naresh, who agreed to conceal the machinery. Pramod also executed an unrecorded discharge letter giving up an undisputed payment claim owed to him by a third party. Pramod and Naresh acted dishonestly to conceal assets and release claims. Pramod and Naresh are punishable under Section 323 BNS.

When Section 323 BNS Does Not Apply

  • The movement of property was conducted openly for standard commercial storage, transport, or routine maintenance
  • The person released or compromised a monetary demand in good faith as part of an honest settlement of disputed claims
  • There was no dishonest or fraudulent intention accompanying the disposition or handling of the goods
  • The debtor lacked assets or failed to pay liabilities without engaging in any concealment, removal, or collusive release of rights

Section 323 BNS in the IPC (Previous Law)

Section 323 BNS replaces Section 424 IPC from the old criminal code.

Section 424 IPC corresponds to Section 323 BNS. Section 323 BNS reproduces the substantive elements of Section 424 IPC regarding dishonest or fraudulent concealment or removal of property or release of claims, but increases the maximum term of imprisonment from two years under Section 424 IPC to three years under Section 323 BNS. The offence remains punishable with fine, or with both.

View IPC Section 424 →

FAQs on Section 323 BNS

What does Section 323 BNS punish?▼

It punishes dishonestly or fraudulently concealing or removing any property of oneself or of any other person, dishonestly or fraudulently assisting in such concealment or removal, or dishonestly releasing any demand or claim to which one is entitled.

Under Section 323 BNS, is it enough that property was moved from one place to another?▼

No. The prosecution must show that the movement or concealment was done dishonestly or fraudulently. A normal transfer, storage, or sale without the required intent will not attract this section.

Is Section 323 BNS a bailable offence?▼

Yes, it is generally treated as a bailable and non-cognizable offence. Police cannot ordinarily arrest without a warrant or investigate without following the required legal process.

What is the punishment under Section 323 BNS?▼

The punishment is imprisonment of either description for a term which may extend to three years, or fine, or both. The court decides the sentence based on the facts, the value of the property, and the intention behind the act.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Bharatiya Nyaya Sanhita, 2023 · Last updated: 16 Oct 2026 ·