IPC Section 420: Meaning, Punishment, Ingredients and BNS Section 318(4)

In summary

Section 420 of the Indian Penal Code dealt with cheating and dishonestly inducing delivery of property and prescribed imprisonment of up to 7 years with a fine. The Indian Penal Code was repealed from 1 July 2024, with the corresponding offence covered under Section 318(4) of the BNS.

• 420 of IPC applied where cheating dishonestly induced a person to deliver property or deal with a valuable security
• The IPC 420 punishment was imprisonment of up to 7 years and a fine, with the fine amount determined by the court
• Four key considerations include deception, fraudulent inducement, delivery of property, and the required dishonest intention
• Section 420 IPC was a cognizable and non-bailable offence and was triable by a Magistrate of the First Class
• Section 318(4) of the Bharatiya Nyaya Sanhita now covers the corresponding offence under the current criminal law framework

The applicable provision depends on the date of the alleged conduct and the law governing the matter. 

Last updated: October 2026.

Section 420 IPC prescribed imprisonment of up to 7 years and a fine. The provision did not specify a fixed fine amount.

Section 318(4) of the BNS also provides imprisonment of up to 7 years and a fine for the corresponding offence.

The main difference is the criminal law framework under which the offence is considered.

Section 358 of the BNS repealed the Indian Penal Code and contains savings provisions for specified rights, liabilities, penalties, punishments, investigations and proceedings under the repealed law.

The key difference lies in intention and timing. Cheating involves dishonest or fraudulent intention, while a breach of contract occurs when a party fails to fulfil a contractual obligation.

A contractual dispute does not automatically amount to cheating; the facts and intention at the relevant time must be examined.

Evidence depends on the facts and circumstances of the matter. Relevant material can include:

• Agreements and contracts
• Payment records
• Bank transaction records
• Invoices and receipts
• Emails, messages and other communications
• Documents containing alleged false representations
• Records relating to delivery or transfer of property
• Witness statements
• Other material relevant to the alleged deception or inducement

The existence of a payment dispute or an unfulfilled contractual obligation does not by itself prove cheating. The evidence must be assessed along with the alleged intention and conduct at the time of inducement.

Yes, a Section 420 IPC offence was compoundable by the person cheated with the permission of the court. This means repayment or settlement between the parties did not automatically end the criminal proceedings. The applicable court had to permit compounding in accordance with the relevant procedural law. For current offences under the BNS, the applicable compounding provisions under the Bharatiya Nagarik Suraksha Sanhita should be checked separately. Settlement can also be relevant to a petition seeking quashing in appropriate circumstances. Whether a court will quash proceedings depends on the facts, allegations, applicable law and judicial principles.

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