Section 318(4) of The Bhartiya Nyaya Sanhita (BNS)
318(4). Cheating and dishonestly inducing delivery of property.— 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 is basically the same as Section 420 IPC.

Explanatory note:
- Section: 318(4) BNS
- Offence: Cheating and thereby dishonestly inducing delivery of property, or the making, alteration or destruction of a valuable security.
- Punishment: Imprisonment extend to 7 years and fine.
Multiple Choice Questions for the AIBE Exams
Q1. What is the maximum term of imprisonment under Section 318(4) of the Bharatiya Nyaya Sanhita for cheating and dishonestly inducing delivery of property?
A) 3 years
B) 5 years
C) 7 years
D) 10 years
✅ Answer: C) 7 years
Explanation: Section 318(4) prescribes imprisonment up to 7 years for cheating and dishonestly inducing delivery of property or tampering with valuable security.
Q2. Section 318(4) BNS applies when a person:
A) Steals property secretly at night
B) Cheating someone and inducing dishonest delivery of property
C) Kills someone in self-defense
D) Commits cybercrime
✅ Answer: B) Cheating someone and inducing dishonest delivery of property
Explanation: Section 318(4) is specific to cheating combined with dishonest inducement to deliver property or alter/destroy valuable security.
Q3. Under Section 318(4) BNS, a person who cheats and dishonestly induces another to make or destroy a valuable security is:
A) Not punishable unless money is involved
B) Liable only for civil damages
C) Liable for criminal punishment
D) Punished only with fine
✅ Answer: C) Liable for criminal punishment
Explanation: Section 318(4) criminalizes cheating that leads to tampering with valuable security, and such acts are punishable with imprisonment and fine.
Q4. What additional liability is imposed under Section 318(4) BNS apart from imprisonment?
A) Community service
B) Compensation to victim
C) Fine
D) Seizure of property
✅ Answer: C) Fine
Explanation: Section 318(4) clearly states that the offender “shall also be liable to fine”, in addition to imprisonment.
Q5. Which of the following best defines “valuable security” under Section 318(4) BNS?
A) Only gold and silver
B) Any property stored in a vault
C) Any document signed/sealed and capable of being converted into a valuable asset
D) Cryptocurrency only
✅ Answer: C) Any document signed/sealed and capable of being converted into a valuable asset
Explanation: The term “valuable security” refers to documents (like cheques, contracts, bonds, etc.) which are signed or sealed and hold financial or legal value.
Q6. Which of the following is an essential element under Section 318(4) BNS?
A) Physical harm to the victim
B) Cheating and dishonest inducement
C) Use of force or violence
D) Theft at night
✅ Answer: B) Cheating and dishonest inducement
Explanation: The section clearly hinges on “cheats and thereby dishonestly induces” — both elements must be present for liability under this provision.
Q7. Section 318(4) of the BNS is primarily based on which section of the Indian Penal Code (IPC)?
A) Section 420 IPC
B) Section 376 IPC
C) Section 302 IPC
D) Section 406 IPC
✅ Answer: A) Section 420 IPC
Explanation: Section 318(4) of the BNS corresponds to Section 420 of the IPC, which also deals with cheating and dishonestly inducing delivery of property.
Q8. A person induces another by false promise to sign over a valuable property deed. Under Section 318(4) BNS, this act is considered:
A) Breach of contract
B) Civil negligence
C) Cheating and dishonest inducement
D) Lawful transaction
✅ Answer: C) Cheating and dishonest inducement
Explanation: Using deception to get someone to sign over a property deed qualifies as cheating and dishonest inducement under Section 318(4).