Section 424 IPC: Dishonest or fraudulent removal or concealment of property

Indian Penal Code, 1860

Section 424 IPC at a Glance

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

Punishment

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

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

Section 323 →

Section 424 IPC Bare Act Text

424. 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 two years, or with fine, or with both.

Source: Section 424, Indian Penal Code, 1860

Section 424 IPC in Simple Words

Section 424 of the Indian Penal Code (IPC) punishes dishonest or fraudulent concealment or removal of property, assisting in such concealment or removal, or dishonestly releasing any demand or claim to which one is entitled. Whoever commits this offence is punished with imprisonment of either description for a term extending up to two years, or with fine, or with both.

Under the First Schedule to the Code of Criminal Procedure, 1973, the offence is non-cognizable, bailable, and triable by any Magistrate. The offence is compoundable without the permission of the court by the person affected thereby under Section 320(1) CrPC.

Ingredients of Section 424 IPC

  • The accused concealed or removed property belonging to himself or to any other person, or assisted in the concealment or removal thereof, or released any demand or claim to which he was entitled
  • The accused acted dishonestly or fraudulently in concealing, removing, assisting, or releasing the claim

Punishment Under Section 424 IPC

Imprisonment

Imprisonment of either description for a term which may extend to two 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 or release of claims carries imprisonment of either description up to two years, or fine, or both.

Example of Section 424 IPC

In 2022 in Ludhiana, a civil court issued an attachment warrant against Harpreet's printing press to recover rent arrears owed to his landlord. The night before the bailiff arrived, Harpreet and his friend Balwinder dishonestly dismantled the offset printing machines, removed them from the premises, and concealed them inside Balwinder's locked farmhouse. Harpreet also dishonestly released a valid insurance claim to which he was entitled so the landlord could not recover it. Harpreet and Balwinder are punishable under Section 424 IPC.

When Section 424 IPC Does Not Apply

  • The owner shifted the goods openly to another location for ordinary repairs, safe custody, or regular business use.
  • A claimant waived or reduced a legal demand honestly as part of a bona fide compromise between the parties.
  • The person who moved or helped move the property acted in good faith without any dishonest or fraudulent intent.
  • A debtor simply lacked the funds to satisfy a decree and did not hide, remove, or dishonestly release any asset or claim.

Section 424 IPC in the BNS

Section 424 IPC is now covered under Section 323 BNS.

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 detailed comparison (IPC 424 vs BNS 323) →

FAQs on Section 424 IPC

What does Section 424 IPC punish?▼

Section 424 IPC punishes anyone who dishonestly or fraudulently conceals or removes property, assists in doing so, or dishonestly releases any demand or claim to which he is entitled.

What is the punishment prescribed under Section 424 IPC?▼

The prescribed punishment is imprisonment of either description for a term which may extend to two years, or with fine, or with both.

Is Section 424 IPC bailable and cognizable?▼

Under the First Schedule to the Code of Criminal Procedure, 1973, an offence under Section 424 IPC is non-cognizable and bailable, triable by any Magistrate.

Can an offence under Section 424 IPC be compounded?▼

Under Section 320(1) CrPC, compounding can be done by the person affected thereby without requiring permission of the court.

Does Section 424 IPC apply to hiding one's own property?▼

Yes, Section 424 IPC expressly covers concealing or removing property of oneself as well as property of any other person, provided it is done dishonestly or fraudulently.

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

Sources: Bare Act Text, Indian Penal Code, 1860 · Last updated: 16 Oct 2026 ·