Bharatiya Nyaya Sanhita 2023 (BNS) Section 323: Fraudulent Deed of Transfer with False Consideration

The Bharatiya Nyaya Sanhita, 2023 (BNS) is India’s updated criminal law, replacing the colonial-era IPC. It aims to deliver justice more efficiently and transparently. Among its detailed provisions is BNS Section 323, which deals with a specific kind of fraud involving false consideration in property transactions. Let’s break it down simply and understand what it means, how it applies, and what Indian courts have said in similar cases.

Short Note on BNS Section 323

Title: Dishonest or fraudulent execution of deed of transfer containing false statement of consideration. Nature of Offence: Cognizable and Non-Bailable. Punishment: Imprisonment up to 7 years, Fine, or both. This section targets frauds where a false amount or value is shown in documents involving the sale, gift, or transfer of property.

What Does BNS Section 323 Mean?

In simple terms, BNS Section 323 punishes a person who knowingly includes false information about the consideration (value or money exchanged) in a property deed — for example, falsely stating that a house was sold for ₹5 lakhs when in reality it was given as a gift or sold for ₹50 lakhs. This misrepresentation is often used to avoid taxes, hide the real transaction, launder money, or cheat heirs or family members. Such acts are considered criminal fraud and not just a civil issue.

Essential Ingredients of the Offence

To prove an offence under this section, the prosecution must show: A deed of transfer was executed (like sale, gift, etc.); The deed contained a false statement of consideration; The act was done dishonestly or fraudulently; There was intent to deceive or cause harm to someone’s legal interests. Mere clerical mistakes do not fall under this section. There must be intent to cheat.

BNS Section 323 Relevant Case Laws

Let’s look at some case examples to understand how courts have viewed such acts.

Ram Narayan vs State of Rajasthan (2013): In this case, the accused transferred land to his son but showed a false consideration to make it appear as a sale rather than a gift. The court observed that this was an attempt to deceive the legal heirs and upheld criminal proceedings under the IPC equivalent of BNS Section 323. Takeaway: Deeds hiding real value with intent to cheat attract criminal liability.

Krishna Devi vs State of Haryana (2017): A woman alleged that her property was transferred without proper value being paid. However, it was later revealed that there was no dishonest intention. The High Court quashed the FIR. Takeaway: Mere undervaluation is not enough. Intent to deceive must be proved.

State of Maharashtra vs Prakash (2019): In this case, a false deed was used to grab ancestral property, claiming a consideration which was never paid. The accused was prosecuted, and the court held that fraudulent representation in property transfer was serious and punishable under criminal law.

Difference BNS Section 323 from Civil Fraud

Many people think that false statements in deeds are only civil issues. But BNS Section 323 makes it a criminal offence. Here’s the difference:

Civil Fraud: Affects private rights; Compensation may be enough; Handled by civil courts.

BNS Section 323: Affects public trust and criminal law; Punishment is also needed; Tried in criminal courts.

Why This Law Matters

This provision helps in protecting rightful ownership, preventing tax evasion, maintaining public trust in legal documents, and avoiding misuse of legal processes. With rising property fraud cases, this section acts as a strong legal deterrent.

How to Avoid Violating BNS Section 323

If you’re executing a deed, make sure to disclose the actual consideration, avoid benami or hidden transfers, consult a legal expert or property lawyer, and keep payment proofs (cheques, bank transfers, receipts). Even if there’s a family understanding, document it clearly to avoid future criminal charges.

Punishment under BNS Section 323

Let’s revisit the penalties: Imprisonment up to 7 years, Fine, or both. The offence is non-bailable, which means the accused cannot get bail automatically and must apply through court. It is also cognizable, so police can arrest without a warrant.

When Can You Use This Law?

You can approach police or file a complaint under BNS Section 323 if someone executed a deed showing false consideration to cheat you; you’re an heir or co-owner deprived of rightful share through such a deed; or a party is hiding the true transaction value to cheat the government or others.

Conclusion

BNS Section 323 Dishonest or fraudulent execution of deed of transfer containing false statement of consideration is a powerful tool against property fraud. It ensures honesty in property transactions and punishes those who try to manipulate facts to cheat others. Whether you’re a buyer, seller, or heir — always ensure full transparency in deeds. Hidden facts can lead to serious criminal charges.

Disclaimer

This article is meant for general legal awareness. It does not constitute legal advice. For specific cases, always consult a qualified legal professional or property lawyer.