Section 420 IPC (Now BNS 318): Cheating Law, Punishment and Bail Explained (2026)

Explainer · Criminal Law

Updated for 2026 · Claw Editorial

Section 420 of the Indian Penal Code (IPC) punishes cheating and dishonestly inducing a person to hand over property, with imprisonment of up to 7 years and a fine. It is a cognizable and non-bailable offence, and under the new criminal code it is Section 318(4) of the Bharatiya Nyaya Sanhita (BNS), 2023. This guide explains what must be proved, the punishment, the bail and compounding position, and how the old and new numbers map, so you can read a 420 case correctly.

01Why Section 420 is so often misunderstood

Section 420 is the most famous number in the IPC, and also one of the most misused. In everyday speech, "420" means any kind of fraud or trickster. In law, it is much narrower.

Not every broken promise is cheating

Many 420 complaints begin as money or contract disputes. A buyer does not pay on time, a builder delays a project, or a deal falls through. Courts keep repeating that a simple breach of contract is a civil wrong. It becomes cheating only if the accused had a dishonest intention from the very start.

The numbering has changed

Criminal law in India changed on 1 July 2024, when the Bharatiya Nyaya Sanhita replaced the IPC for new offences. FIRs for acts after that date use BNS numbers, while older matters still run under the IPC. Lawyers and litigants now meet both numbers in the same week.

02What cheating means: the ingredients of Section 420

Section 420 applies when a person cheats and, by doing so, dishonestly induces another to deliver property or to make, change or destroy a valuable security. It builds on the general definition of cheating in Section 415 IPC (now Section 318(1) BNS).

To prove the offence, the prosecution generally has to show these things:

• A deception: the accused made a false representation or hid a material fact.
• Dishonest or fraudulent intent: the accused meant to cause wrongful gain to self or wrongful loss to another.
• Inducement: the victim was led to act because of the deception.
• Delivery of property: the victim handed over property (or a valuable security) as a result. Without this step, the case may fall under simple cheating (Section 417 IPC) and not Section 420.

Intention at the time of making the promise is the heart of a 420 case. A later failure to keep a promise is not enough on its own.

Why timing of intent matters

If the dishonest intention existed only after the money was taken, the case is usually one of breach of contract, or at most criminal breach of trust. For 420, the intent must be shown at the point of inducement. This is why drafting of the FIR and the facts pleaded matter so much, and why High Courts often quash weak 420 complaints that are really civil disputes.

03Punishment under Section 420 IPC and BNS 318(4)

The punishment is imprisonment of either kind for up to 7 years, and the accused is also liable to a fine. The court decides the actual sentence based on the facts, the amount involved and the conduct of the accused.

• Maximum jail term: 7 years.
• Fine: yes, in addition to jail. The IPC and BNS do not fix a figure for this offence, so the amount is left to the court.
• Trial court: triable by a Magistrate of the First Class.

Plain cheating under Section 417 IPC (BNS 318(2)) carries a much lower punishment: up to 1 year under the IPC, and up to 3 years, or fine, or both, under BNS 318(2). The jump to 7 years is what separates Section 420 from basic cheating.

04Is Section 420 cognizable, bailable and compoundable?

Section 420 IPC is cognizable, non-bailable, and compoundable only with the permission of the court. Here is what each term means in practice.

Bail in a 420 case

Because the offence is non-bailable, the accused applies for regular bail before the Magistrate or a higher court. If arrest is feared, anticipatory bail can be sought from the Sessions Court or High Court. In practice, courts look at the amount involved, whether the dispute is really civil, the stage of the investigation, and whether the accused will cooperate.

Compounding with permission

Many 420 cases end in settlement. Because the offence is compoundable only with the court’s permission, the parties cannot simply withdraw by agreement. The person cheated applies, and the court decides whether to allow the compromise.

05IPC 420 to BNS 318: how the numbers map

Under the BNS, the old Section 420 is now Section 318(4). The BNS groups the whole law of cheating under one section, Section 318, with sub-sections. The core meaning of the offence and the 7 year maximum did not change.

One practical point: use the right section for the date of the offence. An act before 1 July 2024 is generally charged under IPC 420, even if the case is heard now. A later act is charged under BNS 318(4). Searching case law on 420 remains important either way, because courts apply the same reasoning to the new section.

06Typical examples of Section 420 cases

Courts see Section 420 across many everyday situations. Common patterns include:

• Fake job or visa promises: taking money for a job or foreign visa that was never real.
• Property and plot fraud: selling the same plot twice, or taking advance money for land the seller does not own.
• Cheque and loan scams: taking a loan or goods on false representations about assets or identity.
• Investment schemes: collecting money on false promises of returns.
• Online fraud: fake sellers, fake offers or false identity used to get payments.

What links these is a lie told at the start to get the victim to part with money or property. Compare that with a genuine business dispute, where both sides meant to perform but things went wrong later. Courts treat the second as civil.

For related criminal-law sections, see our explainers on Section 302 IPC (murder) and Section 498A IPC.

07Where Claw fits

Claw is an all-in-one legaltech platform for Indian advocates, law firms, and corporate legal teams, combining AI-based case search, an AI legal assistant (Legal GPT), case management, and compliance automation across all Indian courts and tribunals.

A Section 420, now Section 318(4), case runs through an FIR, charge, trial before a Magistrate, and often bail and quashing applications, each with its own dates. Claw tracks cases, orders and hearings across 9,102 courts, benches and forums, with results in under 5 seconds, so you can follow a live cheating matter by party or advocate name. Its index of 30 crore+ judgments, covering the Supreme Court from 1950 and the High Courts from 1990, lets you see how the courts have separated a genuine civil dispute from cheating, and how bail and quashing have been decided on similar facts.

Claw does not use customer documents to train AI models. Create a FREE Claw account to track a cheating case under Section 420 or Section 318(4) by party or advocate name. To search the wider body of law, see case search across Indian courts.

08Sources and further reading

• Indian Penal Code, 1860 and Bharatiya Nyaya Sanhita, 2023: indiacode.nic.in
• Supreme Court of India (official judgments): sci.gov.in
• Claw: clawlaw.in

This page is general information, not legal advice. Last verified October 2026. Always check the current bare act and recent judgments for your case.

09Frequently asked questions