IPC 420 - Cheating and Fraud: Meaning, Examples & Punishment
Cheating and fraud cases are increasing rapidly, especially through online platforms, fake job offers, loan scams, and digital payment frauds. Such offences are punishable under Section 420 of the Indian Penal Code (IPC).
IPC 420 is one of the most commonly used sections in financial crime cases.
What is IPC 420?
A person commits an offence under IPC 420 when they:
- Cheat another person
- Dishonestly induce them to give money, property, or valuable security
- Cause wrongful loss to the victim and wrongful gain to themselves
The key element is intention to cheat from the beginning.
Common Examples of IPC 420 Offences
IPC 420 applies to:
- Fake online shopping websites
- Job scams asking for registration fees
- Loan fraud and fake finance companies
- Investment scams with false promises
- UPI / OTP frauds
- Selling property using fake documents
- Taking money without intention to return
If deception is involved, IPC 420 can be applied.
Difference Between Cheating and Simple Breach of Promise
Not every money dispute is IPC 420.
IPC 420 applies only when:
- The accused had dishonest intention at the time of taking money
If a genuine business deal fails later, it may become a civil dispute, not criminal cheating.
Punishment under IPC 420
As per IPC Section 420, punishment includes:
- Imprisonment up to 7 years
- Fine
Because of the severity of punishment, courts treat IPC 420 cases seriously.
Is IPC 420 a Cognizable Offence?
Yes.
- Police can register FIR
- Police can investigate
- Arrest can be made without prior court permission
Is IPC 420 Bailable?
IPC 420 is generally:
- Non-bailable
- Accused must approach court for bail
Online Fraud Also Comes Under IPC 420
Even digital crimes such as:
- Fake Instagram sellllers
- Fraud websites
- Cryptocurrency scams
- Telegram investment frauds
Can be booked under IPC 420 along with IT Act provisions.
Why IPC 420 is Important
Cheating affects:
- Common people
- Senior citizens
- Small investors
- Job seekers
The law exists to protect citizens from financial exploitation.
Public Advisory
To avoid cheating:
- Never share OTP or bank details
- Verify company registration
- Avoid advance payment to unknown persons
- Use official payment platforms
- Do not trust “guaranteed profit” schemes
If cheated, immediately report to:
- Local police station
- Cyber Crime Portal
Disclaimer:
This article is for public awareness only and not legal advice.
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