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Bharatiya Nyaya Sanhita, 2023 Chapter XVII · Of Offences Against Property
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Bharatiya Nyaya Sanhita, 2023 — Section 322

Dishonest or Fraudulent Execution of Deed of Transfer Containing False Statement of Consideration

Section 322 punishes a person who dishonestly or fraudulently signs, executes or becomes a party to a deed or instrument that purports to transfer property (or any interest in it) or to subject it to a charge, where the deed contains a false statement about the consideration for the transfer or charge, or about the person or persons for whose use or benefit it is really meant to operate. The punishment is imprisonment of up to three years, or fine, or both — up from two years under IPC Section 423.

Please note: This page reflects our understanding of the law as of the date it was last reviewed. Parliament, the State Legislatures, and the courts continue to amend and interpret this law, and this page may not yet reflect the most recent change. Please verify the current text of the law independently, and consult a licensed advocate for advice on your own matter, before relying on this page.

Corresponding Provision Under Prior Law

Verified against the National Crime Records Bureau's official BNS–IPC concordance (Sankalan Portal) and cross-checked directly against the bare text of both Acts. Section 322 carries the “(Change)” marker in the concordance and corresponds to one section of the old Indian Penal Code, 1860 (Section 423). Comparing the two statutory texts, the section is Substantively changed:

BNS sectionIPC, 1860 equivalentCategory
322S.423 “Dishonest or fraudulent execution of deed of transfer containing false statement of consideration”Substantively changed

A word-by-word comparison of BNS Section 322 with IPC Section 423 shows one difference and no others: the maximum term of imprisonment. IPC Section 423 provided imprisonment of either description for a term which may extend to two years, or fine, or both; BNS Section 322 provides imprisonment of either description for a term which may extend to three years, or fine, or both. The description of the offence — the dishonest or fraudulent signing, executing or becoming a party to the deed or instrument, what it purports to do, and the two kinds of false statement — is word for word the same, and so is the marginal heading.

Quick Reference

Sourced from the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) and Section 359 of the BNSS. Section 322 has a single row in the Schedule.

Punishment (First Schedule wording): “Imprisonment for 3 years, or fine, or both.” The statute’s own clause fixes the maximum term ("a term which may extend to three years").
Non-cognizable · Bailable · compoundable by the person affected thereby, without the permission of the Court (BNSS Section 359(1)) · triable by any Magistrate.

Statutory Text (Verbatim)

Whoever dishonestly or fraudulently signs, executes or becomes a party to any deed or instrument which purports to transfer or subject to any charge any property, or any interest therein, and which contains any false statement relating to the consideration for such transfer or charge, or relating to the person or persons for whose use or benefit it is really intended to operate, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both.

Source: Bharatiya Nyaya Sanhita, 2023 (Act No. 45 of 2023), as published in the Gazette of India Extraordinary.

Explanation & Illustration (Lexovia's Commentary — Not Statutory Text)

The offence as a whole

Explanation (Lexovia's Commentary)

Section 322 is about the paperwork of a transfer. Its ingredients are as follows. First, the accused must act dishonestly or fraudulently, as defined in Section 2(7) and Section 2(9). Second, he must sign, execute or become a party to a deed or instrument; the three verbs are alternatives, so the section is not confined to the person who is giving up the property, and each person who dishonestly or fraudulently signs, executes or becomes a party to the deed is within its words. Third, the deed or instrument must be one that purports to transfer, or to subject to any charge, any property or any interest in it; the section speaks of what the document purports to do. Fourth, the deed or instrument must contain a false statement of one of two kinds, joined by “or”: a false statement relating to the consideration for the transfer or charge, or a false statement relating to the person or persons for whose use or benefit the deed is really intended to operate.

Note that the marginal heading of the section mentions only a false statement of consideration, while the words of the section also refer to a false statement about the person or persons for whose use or benefit the deed is really intended to operate. Section 2 does not define “deed”, “instrument”, “consideration” or “charge” (BNSS Section 2(1)(f) defines “charge”, but only for the purposes of that Sanhita; Section 2’s definition of “document” in clause (8) is a separate, wide definition covering any matter expressed or described upon any substance by letters, figures or marks, including electronic and digital record, intended to be used or which may be used as evidence; Section 322 uses the words “deed or instrument”). As everyday examples, a false statement relating to consideration might be something like a recital that a sum was paid as the price when it was not paid, or when a different sum was in truth agreed; and a false statement relating to the person for whose use or benefit the deed is really intended to operate might be a statement naming one beneficiary when the deed is really meant to benefit someone else. These are everyday examples offered only to make the words concrete; the words of the section are what count.

The section should be distinguished from its neighbours. Section 320 concerns removing, concealing, delivering or transferring property to defeat creditors, and requires an intention or knowledge about distribution among creditors; Section 322 has no such requirement in its words, and looks instead to the document and what it falsely states. Section 321 concerns preventing a debt or demand from being made available for payment of debts. Section 323 concerns dishonest or fraudulent concealment or removal of property, assisting in it, and releasing a demand or claim. Separately, Section 318 (cheating) and the offences relating to documents in Chapter XVIII (for example Sections 335 and 336) have their own ingredients; the words of Section 322 do not mention that anyone was deceived into parting with property, or that a document was forged. They refer to the dishonest or fraudulent signing, execution or joining, in respect of a deed or instrument of the kind described that contains the false statement.

The punishment is imprisonment of either description (rigorous or simple, as listed in Section 4(c)) for a term which may extend to three years, or fine, or both, with no minimum term. This is the point at which the Sanhita differs from IPC Section 423: the maximum term rises from two years to three, and no other word of the section changed. The BNSS First Schedule lists Section 322 as non-cognizable (BNSS Section 2(1)(o): a police officer has no authority to arrest without warrant), bailable, and triable by any Magistrate. Under BNSS Section 359(1) it is compoundable by the person affected thereby, without the permission of the Court; Section 359 sets further conditions on compounding that should be read in full before it is relied on in any real case.

Illustration (Lexovia's Own Example)
Bhaskar owns a plot of land. Under a written agreement enforceable against him, he must share the sale price equally with his sister Chitra, so Chitra is entitled to half the price. He agrees to sell the plot to Anand for ₹40 lakh, which Anand pays. Bhaskar and Anand, however, agree to sign a sale deed transferring the plot to Anand that states the price as ₹10 lakh, paid in full. Bhaskar intends that Chitra should be told the lower figure and receive far less than her share; Anand knows of the agreement with Chitra and agrees to sign precisely so that Chitra’s share is reduced. The deed purports to transfer property, and it contains a false statement relating to the consideration for the transfer. Bhaskar, who executes the deed, and Anand, who becomes a party to it, have each acted dishonestly — each with the intention of causing wrongful loss to Chitra, who is legally entitled to half the price — and each is within Section 322, which carries imprisonment of up to three years, or fine, or both. The example turns on the false statement about consideration; the other kind of false statement, about the person for whose benefit the deed operates, is not involved.
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Related / Cross-Referenced Sections

FAQs

What is the punishment under BNS Section 322?

Imprisonment of either description (simple or rigorous) for a term which may extend to three years, or fine, or both. The section sets no minimum term.

Is Section 322 bailable, and which court tries it?

Under the First Schedule to the BNSS it is non-cognizable and bailable, and triable by any Magistrate. Under BNSS Section 359(1) it is compoundable by the person affected thereby, without the permission of the Court, subject to the other conditions of Section 359.

Does the section only cover a false statement about the price?

No. The heading mentions consideration, but the words of the section cover two kinds of false statement: one relating to the consideration for the transfer or charge, and one relating to the person or persons for whose use or benefit the deed is really intended to operate.

Who can be punished: the seller, the buyer, or both?

The section applies to a person who dishonestly or fraudulently signs, executes or becomes a party to the deed or instrument. It is not limited to the person who transfers the property.

Does the deed have to actually transfer the property?

The words are “which purports to transfer or subject to any charge” any property or any interest in it; they do not say that the deed must be effective to do so.

What has changed from IPC Section 423?

Only the maximum term of imprisonment: two years under IPC Section 423, three years under Section 322. The rest of the wording and the marginal heading are the same.

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