Section 318(4) BNS – 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.
Section 318(4) BNS Punishment, Bail & Court Details
Q1) Section 318(4) BNS Punishment
Ans: Imprisonment for 7 years and fine.
Q2) Section 318(4) BNS Is Cognizable or Non-cognizable
Ans: Cognizable.
Q3) Section 318(4) BNS Is Bailable or Not
Ans: Non-bailable.
Q4) Person by whom offence may be compounded
Ans: The person cheated. With the permission of the Court before which any prosecution for such offence is pending.
Q5) By what Court triable
Ans: Magistrate of the first class.
What is Section 318(4) BNS
This section is about cheating someone to obtain property or valuable documents. If a person dishonestly deceives someone, and because of that deception:
- The victim gives any property (like money, jewellery, goods) to anyone; or
- The victim makes, alters, or destroys any valuable papers or security (like shares, bonds, signed agreements, or any document capable of being converted into valuable property).
Then the person committing the offence shall be punished with:
- Imprisonment up to 7 years
- Fine
Section 318(4) BNS Examples
Example 1 – Cheating to get money
A tells B, “I will invest your ₹50,000 in a government scheme and double it in one month.” B gives him the money. A does not invest it and runs away. This is cheating under Section 318(4) because A dishonestly got money from B.
Example 2 – Cheating with valuable documents
A says, “Sign this paper to B as it is only a formality for a bank loan.” The paper is actually a power of attorney that allows the cheater to sell B’s house. B signs it without knowing the truth. This is cheating under Section 318(4) because the cheater dishonestly made B sign a valuable document.
Example 3 – Altering valuable property
A dishonest person convinces a company employee to change the records of share ownership. The cheater gets some shares transferred to himself. This is cheating under Section 318(4) because the cheater dishonestly caused alteration of valuable documents.
Essential Elements of Section 318(4) BNS
- Dishonest Intention (Mens Rea)
- The offender must intend dishonestly from the beginning, aiming to gain or cause loss.
- Cheating / Deception (Actus Reus)
- The offender cheats or deceives someone.
- Deception means making the victim believe something false.
- Inducement
- The cheating induces the victim to act. The victim acts because of the deception, not voluntarily.
- Resulting Act by Victim
- The victim, due to inducement, does one of the following:
a. Delivers property to someone.
b. Makes, alters, or destroys a valuable security.
c. Signs or seals something capable of becoming a valuable security.
- The victim, due to inducement, does one of the following:
AIBE MCQs on Section 318(4) BNS
Q1. The essential ingredients of an offence under Section 318(4) BNS include:
A. Cheating and wrongful restraint
B. Cheating and dishonest inducement to deliver property or alter a valuable security
C. Criminal breach of trust and misappropriation
D. Dishonest intention without delivery of property
Answer: B
Q2. Under Section 318(4) BNS, the term “valuable security” refers to:
A. Only movable property of high value
B. Any document creating, extending, transferring, or extinguishing a legal right
C. Only negotiable instruments
D. Only government securities
Answer: B
Q3. For an offence under Section 318(4) BNS, the dishonest intention must exist:
A. After the property is delivered
B. At the time of inducement
C. Only at the time of trial
D. At any stage, even subsequently
Answer: B
Q4. Which of the following acts would amount to an offence under Section 318(4) BNS?
A. Mere breach of contract without dishonest intention
B. Inducing a person by deception to sign a document capable of being converted into a valuable security
C. Refusing to repay a lawful debt
D. Giving false evidence in court
Answer: B
Q5. The punishment prescribed under Section 318(4) BNS is:
A. Imprisonment up to three years or fine
B. Imprisonment up to five years only
C. Imprisonment up to seven years and fine
D. Fine only
Answer: C
Q6. Section 318(4) BNS is attracted when the accused cheats and dishonestly induces the victim to:
A. Transfer immovable property only
B. Deliver property or alter/destroy a valuable security
C. Make an oral promise
D. Commit an offence
Answer: B
Q7. Which of the following is NOT required to constitute an offence under Section 318(4) BNS?
A. Deception
B. Dishonest inducement
C. Delivery of property or alteration of valuable security
D. Use of criminal force
Answer: D
Q8. A induces B by deception to destroy a signed document that could be converted into a valuable security. A’s act amounts to:
A. No offence
B. Criminal intimidation
C. Cheating under Section 318(4) BNS
D. Defamation
Answer: C
Q9. Which of the following best distinguishes Section 318(4) BNS from mere civil liability?
A. Presence of monetary loss
B. Existence of dishonest intention at the inception
C. Breach of promise
D. Non-performance of contract
Answer: B
Q10. Section 318(4) BNS corresponds most closely to which provision under the Indian Penal Code, 1860?
A. Section 405 IPC
B. Section 415 IPC
C. Section 420 IPC
D. Section 463 IPC
Answer: C