Introduction

 The term 'fraud' is not defined in the Penal Code.

Fraud is an act of deliberate deception with a design to secure something, which is otherwise not due. Fraud and deception are synonymous.

Cheating is considered a criminal offence under the Indian Penal Code. It is done to gain profit or advantage from another person by using some deceitful means. The person who deceives another knows for the fact that it would place the other person in an unfair situation

Provisions about the Offence of Fraud

Section 421: Dishonest or fraudulent removal or concealment of property to prevent distribution among creditors

•             Whoever dishonestly or fraudulently removes, conceals or delivers to any person, or transfer or causes to be transferred to any person, without adequate consideration, any property, intending thereby to prevent, or knowing it to be likely that he will thereby prevent, the distribution of that property according to law among his creditors or the creditors of any other person, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

Section 422: Dishonestly or fraudulently preventing debt from being available for creditors

•             Whoever dishonestly or fraudulently removes, conceals or delivers to any person, or transfer or causes to be transferred to any person, without adequate consideration, any property, intending thereby to prevent, or knowing it to be likely that he will thereby prevent, the distribution of that property according to law among his creditors or the creditors of any other person.

Section 423: Dishonest or fraudulent execution of the deed of transfer containing false statement of consideration

•             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 intended to operate

Section 424: Dishonest or fraudulent removal or concealment of property

•             Whoever dishonestly or fraudulently conceals or removes any property of himself or any other person, or dishonestly or fraudulently assists in the concealment or removal thereof, or dishonestly releases any demand or claim to which he is entitled.

Provisions about the offence of Cheating

Section 416:- cheating by Personation

If a person cheats on someone by pretending to be a particular person, or if a person knowingly substitutes a particular person for another, or represents a person to be some other person then he is said to cheat by personation. The person substituting a person for another should know that such another person is a different person from the person he is representing. The offence of cheating by personation is committed when the person who is personated is a real person and not imaginary.

Section 418:- Cheating Out Of Fiduciary Relations

A fiduciary relationship is any relationship which exists between two parties where they share utmost good faith and confidence for a transaction. Section 418 of the IPC applies to cases of cheating wherein there was a fiduciary relationship between the parties. Section 418 of IPC deals with the cases in which trust exists between the parties and there is an abuse of the trust by cheating. Section 418 punishes those parties in the case of cheating who owed a special responsibility towards the other party. The parties are punished for misusing and breaching the trust which existed between them.

Section 420:- The cheating and the 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.

Effects on the person affected by Fraud and Cheating

·        Stress and guilt fill them

·        People will judge them harshly Cheating overshadows their success

·        A cheater finds it hard to settle in their next relationship

·        Low Self Esteem

·        Depression

·        Anxiety

·        Intrusive thoughts

·        Rumination

·        Nightmares

Punishment of Fraud and Cheating

o   Sec421:punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

o   Sec422: punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

o   Sec423: punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

o   Sec 424:punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.

o   Sec420:punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

o   Section 417:- punishment for cheating

Imprisonment may extend up to one year or with a fine or both.

o   Section 419:- punishment for cheating by personation

Imprisonment may be up to three years or with a fine or both.

Case Laws

RamnarayanPopali vs. C.B.I. held that deception doesn't need to be by express words but it may be by conduct or implied like the transaction itself.

The word fraudulently does not cover the whole definition of cheating, but only the first part. The person deceived must have acted underneath the power of dishonesty along with the damage must not be moreover inaccessible.

Baboo Khan v. state of Uttar Pradesh, the court held that the accused, which pretended to be a certain well-known eye specialist and encourage the claimant to agree to him to carry out a procedure on the eye of his 12-year-old son, was found guilty under this IPC section.

Aji Ahmad Yar Khan v. Abdul Gani Khan AIR 1937 Nag 270., the plaintiff paid money to commemorate his son's engagement. He soon discovered that the girl had epileptic seizures, and the engagement was called off. He sued the other party to recover damages for the loss he had suffered as a result of their willful concealment of a crucial fact, which amounted to fraud.

 Conclusion

 Section 420 is a severe type of offence entailing the delivery of property by dishonestly eliciting a person or any modification or demolition to the whole or any portion of valuable security. The most vital feature of Section 420 is the pre-existence of malicious or deceptive intention in the accused’s mind, which has been described in Sections 24 and 25. In the case of an offence of fraud, it is controversial whether a fine .