Important IPC Sections Every Gold Buyer & Seller in Chennai Must Know
Gold is not just an ornament in India - it is savings, security, and sometimes survival. But in recent years, gold-related frauds, stolen jewellery circulation, and fake purity cases have increased. Many people unknowingly get trapped - not because of bad intention, but lack of legal awareness.
To protect the public, the Indian Penal Code (IPC) has clear provisions. Every gold buyer, seller, jeweller, and pawn broker should be aware of these key sections.
IPC Section 411 – Receiving Stolen Property
Buying or receiving gold knowing or suspecting that it is stolen is a criminal offence.
Punishment: Up to 3 years imprisonment, or fine, or both.
- Always verify seller identity and source of gold.
IPC Section 414 – Assisting in Concealment of Stolen Gold
Helping to hide, sell, melt, or transport stolen gold is also punishable.
- Even middlemen and agents are liable.
IPC Section 379 – Theft
Stealing gold jewellery, coins, or bars is theft.
- Applies to chain snatching, shop theft, and employee theft.
IPC Section 380 – Theft in House or Shop
Gold theft from homes, jewellery shops, or showrooms.
Punishment: Up to 7 years imprisonment and fine.
IPC Section 403 – Dishonest Misappropriation
Keeping gold found or entrusted, without returning it to the rightful owner.
- “Found gold is not free gold.”
IPC Sections 405 & 406 – Criminal Breach of Trust
Gold given for safe custody, repair, pledging, melting, or redesign. If misused or not returned → criminal offence.
- Very relevant for jewellers and pawn brokers.
IPC Sections 415 & 420 – Cheating
Selling fake gold, low-purity gold as 22K/24K, or misleading customers intentionally.
- IPC 420 applies when cheating is deliberate.
IPC Sections 468 & 471 – Forgery & Use of Forged Documents
Fake bills, fake hallmark certificates, fake invoices. Using such documents knowingly is a serious offence.
IPC Sections 34 & 120B – Common Intention & Criminal Conspiracy
When gold fraud involves multiple people working together, all can be punished.
- Group fraud = group liability.
Public Awareness Message
Buying or selling gold without proper verification can turn profit into punishment. Check identity, insist on bills, follow KYC norms, and stay legally sasafe. Awareness is protection.
