Section 420 IPC: Cheating and dishonestly inducing delivery of property
Indian Penal Code, 1860
Section 420 IPC at a Glance
Section 420 IPC deals with cheating and dishonestly inducing delivery of property. It is non-bailable and cognizable, triable by Magistrate of the first class; from 1 July 2024 it is replaced by Section 318(4) BNS.
Imprisonment of either description for a term which may extend to seven years.
Section 420 IPC Bare Act Text
420. 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 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.
Source: Section 420, Indian Penal Code, 1860
Section 420 IPC in Simple Words
Section 420 of the Indian Penal Code (IPC) punishes 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 make, alter, or destroy the whole or any part of a valuable security, or anything signed or sealed capable of conversion into a valuable security, is punished with imprisonment of either description for a term which may extend to seven years, and is also liable to fine.
Under the First Schedule to the Code of Criminal Procedure, 1973, the offence is cognizable, non-bailable, and triable by a Magistrate of the first class. The offence is compoundable with the permission of the court by the person cheated under Section 320(2) CrPC.
Ingredients of Section 420 IPC
- The accused committed cheating within the meaning of Section 415 IPC
- The accused dishonestly induced the person deceived to deliver property to any person, or to make, alter, or destroy a valuable security or anything signed or sealed capable of conversion into a valuable security
- Dishonest intention to cause wrongful gain or wrongful loss was present at the time the deception and inducement took place
- A direct causal link existed between the deception practiced by the accused and the delivery of property or execution of the document
Punishment Under Section 420 IPC
Imprisonment of either description for a term which may extend to seven years.
The offender is also liable to fine. The statute does not make fine mandatory and prescribes no fixed limit.
Cheating and dishonestly inducing delivery of property carries imprisonment of either description for up to seven years and liability to fine.
Example of Section 420 IPC
When Section 420 IPC Does Not Apply
- A commercial venture collapses because of subsequent financial difficulties when the promisor had an honest intention to perform at the time the agreement was made.
- A party breaches a contract in a purely civil dispute where both sides entered the transaction in good faith without any initial deception.
- A seller uses ordinary promotional praise about a product without making any dishonest misrepresentation of fact to induce the buyer.
- Property or a valuable security is handed over voluntarily without any deception or dishonest inducement practiced by the recipient.
Section 420 IPC in the BNS
Section 420 IPC is now covered under Section 318(4) BNS.
Section 420 IPC corresponds to Section 318(4) BNS. Section 318(4) BNS retains the exact ingredients and penalty structure of Section 420 IPC, prescribing imprisonment of either description for a term extending up to seven years and liability to fine. The offence is now arranged as the fourth sub-section of Section 318(4) BNS, which brings together the definition of cheating and its various penal provisions into a single comprehensive section.
View detailed comparison (IPC 420 vs BNS 318(4)) →FAQs on Section 420 IPC
What does Section 420 IPC punish?▼
Section 420 IPC punishes cheating where the offender dishonestly induces the deceived person to deliver any property, or to make, alter, or destroy a valuable security.
What is the punishment under Section 420 IPC?▼
The prescribed punishment is imprisonment of either description for a term which may extend to seven years, and the offender is also liable to fine.
Is Section 420 IPC bailable and cognizable?▼
Under the First Schedule to the Code of Criminal Procedure, 1973, an offence under Section 420 IPC is cognizable and non-bailable, triable by a Magistrate of the first class.
Can Section 420 IPC be compounded by the parties?▼
Yes, Section 420 IPC can be compounded under Section 320(2) CrPC by the person cheated, provided permission of the court is obtained.
What distinguishes a criminal offence under Section 420 IPC from a civil breach?▼
The key distinction is the existence of fraudulent or dishonest intention at the very beginning of the transaction. A mere subsequent inability to perform an agreement does not constitute an offence under Section 420 IPC.
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Sources: Bare Act Text, Indian Penal Code, 1860 · Last updated: 16 Oct 2026 ·