You file a cheating case by giving a written complaint at the police station, or a private complaint before a Magistrate, under BNS Section 318 (earlier IPC 420). The key is to show dishonest intent from the start, not just a broken promise. Where intent is unclear, a civil suit for recovery or fraud is often the better route.
Key takeaways
- Cheating needs deception and dishonest intent at the time of the deal; a later breach of contract alone is not enough.
- BNS s.318(4), cheating that induces delivery of property, carries up to 7 years and is cognizable and non-bailable.
- Police may hold a preliminary enquiry before an FIR for offences punishable with 3 to 7 years.
- Civil fraud lets you claim the money back and undo the contract on a lower standard of proof.
- For cash deals, written acknowledgements, withdrawals and messages are the backbone of proof.
What counts as cheating under BNS Section 318?
Under Section 318 of the Bharatiya Nyaya Sanhita, 2023, a person cheats when they deceive someone and, by that deception, fraudulently or dishonestly induce them to deliver property, money or consent, or to do or omit something they would not otherwise have done, causing harm. The old IPC sections 415-420 are now combined in this one section.
The decisive element is intention at the start. The Supreme Court has repeatedly held, for instance in Hridaya Ranjan Prasad Verma v. State of Bihar (2000), that a mere failure to keep a promise is not cheating unless the person had a dishonest intention when the promise was made. A businessman whose venture failed is not a cheat; one who took advances on a fake order book is.
This page covers cheating between individuals and businesses. Online scams by strangers, such as fake shops or investment apps, have a separate fast-track reporting route explained in how to report cyber fraud in India.
Cheating case punishment in India, and is it bailable?
| Provision | What it covers | Maximum punishment | Nature |
|---|---|---|---|
| BNS s.318(2) | Simple cheating | Up to 3 years, fine, or both | Non-cognizable, bailable |
| BNS s.318(3) | Cheating someone whose interests the accused was bound to protect (e.g. an agent or trustee) | Up to 5 years, fine, or both | Bailable |
| BNS s.318(4) | Cheating and dishonestly inducing delivery of property or money (earlier IPC 420) | Up to 7 years and fine | Cognizable, non-bailable |
| BNS s.316 | Criminal breach of trust: money entrusted and then misappropriated (earlier IPC 406) | Up to 5 years in the basic form, more for aggravated forms | Cognizable, non-bailable |
| BNS s.336-340 | Forgery and using forged documents, often charged together | Varies | Varies |
"Non-bailable" does not mean bail is impossible. It means bail is at the court's discretion, and in money disputes courts often grant bail or anticipatory bail, sometimes with conditions such as depositing part of the amount. Cheating under s.318(2) can be compounded by the victim, and s.318(4) with the court's permission, which is how many cases end.
How to file a money cheating case: step by step
- Write a clear complaint giving dates, amounts, what was promised, what lie was told, how you paid, and why you now believe the intention was dishonest from the start. Attach copies of evidence.
- Submit it at the police station with jurisdiction (where the deception or payment happened), and take a stamped receipt. You can file a Zero FIR at any station if urgent.
- Expect a preliminary enquiry. For offences punishable with 3 to 7 years, BNSS s.173(3) allows police, with a senior officer's permission, to make a preliminary enquiry within 14 days to see if a prima facie case exists. Be ready to give documents.
- If police refuse, send the complaint to the Superintendent of Police (BNSS s.173(4)), and then apply to the Magistrate under BNSS s.175(3) (earlier CrPC 156(3)) for a direction to register and investigate, supported by an affidavit.
- Or file a private complaint directly before the Magistrate under BNSS s.223 (earlier CrPC 200), leading evidence yourself.
Police must register an FIR when a complaint discloses a cognizable offence (Lalita Kumari, 2013), but commercial and money disputes are among the categories where a preliminary enquiry is permitted. Courts also frown on criminal cases filed only to pressure someone in a civil dispute, so build your complaint around the deception, not just the unpaid amount.
How to prove dishonest intent
Intent is proved by circumstances. Evidence that persuades police and courts includes:
- The person used a false identity, fake documents or a non-existent company; see our guide to checking forged documents.
- They made the same promise to several people and took money from all of them.
- The property, job, tender or order they promised never existed or was already sold to someone else.
- They disappeared, changed numbers or moved soon after receiving the money.
- They transferred the money out immediately or bought assets in a relative's name.
- Their excuses changed and contradict documents.
Before you hand over money in a big deal, a background check on the person or verification of the company often reveals earlier complaints and cases, which also become useful evidence later if things go wrong.
How to prove cash money transactions in a fraud case
Cash loans between friends and relatives are common in India, and they are the hardest to prove. Useful evidence includes:
- A signed acknowledgement, promissory note or diary entry in the borrower's handwriting.
- Your bank withdrawal of a matching amount shortly before the handover.
- WhatsApp messages, calls recorded by a participant or SMS where the borrower admits receipt or promises to repay.
- Witnesses present when the cash was handed over.
- Any partial repayment by bank transfer or UPI, which shows the debt existed.
Note that income tax law restricts accepting loans of ₹20,000 or more in cash and receiving ₹2 lakh or more in cash in one transaction; breaching these rules invites tax penalties, and courts may question large unexplained cash. It does not by itself erase the debt, but disclose your cash sources honestly to your lawyer. Our guide on call recording explains when recording your own call is lawful.
How to prove fraud in a civil case
Civil fraud is defined in Section 17 of the Indian Contract Act, 1872: false statements made knowingly, active concealment, promises made without intent to perform, and similar acts done to induce a contract. A contract obtained by fraud is voidable, and the victim can sue to cancel it and recover money with interest and damages.
- Standard of proof: balance of probabilities, lower than criminal cases, though courts expect fraud to be specifically pleaded with particulars.
- Limitation: for suits based on fraud, time runs from when you discovered the fraud (Limitation Act s.17).
- Faster routes: where there is a written contract or cheque, a summary suit can be quicker; see how to recover money someone owes you. If a cheque was involved and bounced, a Section 138 case is often the strongest lever.
Many victims run a criminal complaint and a civil suit side by side: the first addresses the deception, the second actually returns the money.
Where an investigator fits in
Fraudsters often disappear between the deal and the complaint. A verified investigator can lawfully trace a current address for police and court process, document a pattern of other victims through public records and interviews, check whether the promised property or business exists, and identify assets that may be attached later through asset tracing. Bank statements and call records, however, come only through police and court orders. You can find a verified detective in your city through Hire Your Detective.
Bottom line
Cheating is about a lie at the start, not a promise broken later. Build your complaint around that deception, with documents, messages and witnesses, and use the Magistrate route if police will not act. If the dispute is really about an unpaid debt, pair or replace the criminal case with a civil recovery suit, which is what actually brings money back.
Sources & official links
This guide is general information, not legal advice. Laws and procedures change, and every case is different — speak to a lawyer about your situation. In an emergency, call 112.