Cheating / fraud case India — BNS s.318 (old IPC 420), breach of trust s.316 (old 406): FIR, money back, civil vs criminal (2026)
Plain map for anyone who has been cheated of money or property in India — or who has been accused of it: what cheating means under Section 318 of the Bharatiya Nyaya Sanhita, 2023 (old IPC 415/417/420), how it differs from criminal breach of trust under Section 316 (old IPC 405/406) and from a simple breach of contract, how to file an FIR under BNSS Section 173 (old CrPC 154), what to do if police refuse, the parallel civil route to recover money, and first steps for an accused. Educational only — not legal advice; Adhiwakta does not file FIRs, complaints or bail applications.
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What “cheating” means — Section 318 BNS (old IPC 415/420)
Under Section 318(1) BNS, a person cheats when, by deceiving someone, they fraudulently or dishonestly induce that person to deliver property, or to consent that someone retain property, or intentionally induce them to do or omit something they would not otherwise do, causing (or likely to cause) damage or harm. Punishment depends on the sub-section: s.318(2) general cheating — up to 3 years, or fine, or both (old IPC 417); s.318(3) cheating a person whose interest the accused was bound to protect — up to 5 years (old IPC 418); s.318(4) cheating and dishonestly inducing delivery of property or altering/destroying a valuable security — up to 7 years and fine (old IPC 420). Section 319 covers cheating by personation (old IPC 416/419).
Cognizable or not — why the sub-section matters
Under the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), s.318(4) is cognizable and non-bailable and triable by a Magistrate of the first class, while s.318(2) and s.318(3) are non-cognizable and bailable. Criminal breach of trust under s.316(2) (up to 5 years, or fine, or both; old IPC 406) is cognizable and non-bailable. Forgery for the purpose of cheating (s.336(3), old IPC 468) is also cognizable. Cognizable means police can register an FIR and investigate without a Magistrate’s order; for non-cognizable cheating, police record the information and refer you to the Magistrate (BNSS s.174, old CrPC 155).
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Cheating vs criminal breach of trust vs breach of contract
In cheating, the dishonest intention exists at the very start — the victim parts with money or property because of a deception. In criminal breach of trust (s.316), property is first lawfully entrusted (to a partner, agent, employee, builder, relative) and is later dishonestly misappropriated or used against the terms of the trust. A mere failure to keep a promise or repay money is a breach of contract — a civil wrong — unless fraudulent intention at the inception is shown; the Supreme Court has said this repeatedly (for example Hridaya Ranjan Prasad Verma v. State of Bihar, 2000) and courts quash cases where a purely civil dispute is given a criminal colour. Frame your complaint around facts, not labels.
How to file — FIR under BNSS s.173 (old CrPC 154)
Give a written complaint at the police station that has jurisdiction (or a Zero FIR at any station; e-FIR where your State allows). State dates, the promise or representation made, how and how much you paid (bank transfer, UPI, cheque, cash receipt), what was delivered or not, and the names, phone numbers and addresses of the people involved. You are entitled to a free copy of the FIR (s.173(2)). For cognizable offences punishable with 3 years or more but less than 7 years, the officer may — with permission of an officer not below DSP rank — hold a preliminary enquiry of up to 14 days to see whether a prima facie case exists (s.173(3)) before registering; ask for the outcome in writing.
If the police do not register
Send the substance of the complaint in writing (and by post) to the Superintendent of Police under BNSS s.173(4) (old CrPC 154(3)). If that also fails, an application can be made to the Magistrate under s.175(3) (old 156(3)) seeking a direction to investigate, or a private complaint under s.223 (old 200). Keep receipts of every letter. Online frauds (UPI, investment apps, fake job offers) should also be reported immediately on the National Cyber Crime Helpline 1930 or cybercrime.gov.in — speed matters for freezing money in the receiving accounts.
Getting money back — the civil route runs in parallel
A criminal case punishes; it does not automatically refund. Money is usually recovered through a civil suit for recovery (a summary suit under Order XXXVII CPC where it applies, e.g. on a promissory note, bill of exchange or written contract for a debt), a cheque-bounce case under Section 138 of the Negotiable Instruments Act if a cheque was given and dishonoured, a consumer complaint where the cheat was a seller or service provider, or a RERA complaint for builders. Courts may order compensation to a victim in criminal proceedings, and parties sometimes settle: s.318(4) is compoundable by the person cheated with the permission of the court (BNSS s.359, old CrPC 320). Limitation for civil recovery suits is generally short (often 3 years) — check dates early.
If you are the accused
Do not ignore a police notice under BNSS s.35(3) (old CrPC 41A) — appear as directed and keep a copy of what you submit. For non-bailable sub-sections (s.318(4), s.316), people often consider anticipatory bail under BNSS s.482 (old CrPC 438) in the Sessions Court or High Court. Where the dispute is essentially civil, a petition to quash the FIR can be filed in the High Court under BNSS s.528 (old CrPC 482). Never contact or threaten the complainant; settlement talks should be documented and lawful.
Papers to gather
Bank statements and UPI screenshots with transaction IDs; agreements, receipts, invoices or promissory notes; WhatsApp chats, emails and call logs (keep originals on the device and take a backup); advertisements, websites or brochures used to induce you; ID and address of the other side; names of witnesses; and a date-wise chronology. For electronic records, courts may ask for a certificate under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023 (old Evidence Act s.65B).
What this guide is not
It is not a prediction of whether your facts amount to cheating, not a guarantee of an FIR, arrest, refund or conviction, and not advice on settlement terms. State police procedures and the courts’ approach to civil-vs-criminal disputes vary with facts.
How Adhiwakta can help
We do not file FIRs or complaints, appear in court, or negotiate with the other side. Adhiwakta is a facilitation platform, not a law firm. We do not file cases, appear before any authority, or promise any result. Use Ask Adhiwakta to describe your situation for general guidance from an independent advocate, or start with the AI helper to organise your facts and papers. Educational only — not formal legal advice.
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Frequently asked questions
- What is the new section for IPC 420?
- Since 1 July 2024, cheating is in Section 318 of the Bharatiya Nyaya Sanhita, 2023. Old IPC 420 (cheating and dishonestly inducing delivery of property) corresponds to BNS s.318(4) — up to 7 years and fine, cognizable and non-bailable. Old IPC 406 (criminal breach of trust) is now BNS s.316(2).
- Someone took my money and did not return it — is that cheating?
- Not always. If there was a deception from the start that made you pay, it may be cheating (s.318). If money was entrusted and later misused, it may be criminal breach of trust (s.316). A simple failure to repay without initial dishonest intent is usually a civil matter for a recovery suit. Facts and documents decide.
- Police are not registering my cheating complaint. What can I do?
- Send the complaint in writing to the Superintendent of Police (BNSS s.173(4)); if that fails, apply to the Magistrate under s.175(3) or file a complaint case. For some offences police may first hold a preliminary enquiry of up to 14 days with DSP permission (s.173(3)). For online fraud, also report on 1930 / cybercrime.gov.in immediately.
- Will the FIR get my money back?
- Not by itself. Recovery usually needs a civil suit, a cheque-bounce case if a cheque was dishonoured, a consumer or RERA complaint, or a settlement. Courts can order compensation in criminal cases, and s.318(4) can be compounded by the victim with court permission.
- Does Adhiwakta file cheating cases?
- No. We do not file FIRs, complaints or bail applications. Use Ask Adhiwakta or the AI helper for general educational guidance only.
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