BNS Section 322: Dishonest Or Fraudulent Execution Of Deed Of Transfer Containing False Statement Of Consideration
Section 322 falls under Chapter 17 of the Bharatiya Nyaya Sanhita (BNS). Chapter 17 covers offences against property. Each section under this chapter deals with different offences related to various property related crimes. Section 322 specifically deals with executing false deed of transfer. Let us take a closer look at its provisions.
Definition of BNS Section 322
Section 322 of the Bharatiya Nyaya Sanhita (BNS), 2023 states:
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.
Explanation and Illustration of Section 322
This section is applicable to any person within the sovereign borders of India, whether citizen, resident or otherwise. It deals with the offence of executing false deed of transfer. Let us break down the section to get a better understanding of it.
Offence
This section deals with executing any property related matter by stating false or inaccurate facts in the deed for such action. In particular, it deals with any property matter that creates a fundamental change in the ownership or ownership pattern of the property. In order to facilitate such a change as per the law, a deed has to be drawn specifying the details of the transaction and the consequent changes.
When the details mentioned in the deed are found to be false or inaccurate then any person who has signed or executed or is a party to such a deed shall be considered an offender under the provisions of this section. In specific, it refers to inaccuracies or falsehoods in the details regarding:
the consideration for such transfer or charge - referring to the money or any other kind of consideration that has been exchanged in return for the change in property status.
relating to the person or persons for whose use or benefit it is really intended to operate - referring to the persons in whose favour the deed is being executed.
If any of the above details are found to be false or superficial, then the execution of such deed shall be considered an offence under the provisions of this section and all parties to such a deed shall be prosecuted accordingly.
However, the most important part to note here is that this falsehood in facts will not be an offence if it has occurred on account of a mistake or an error. In other words, the falsehood has to be intentional, dishonest and with the intention of concealing the actual details of the transaction.
Punishment
All persons who become parties to any property related deed that contains false information about the consideration or the beneficiaries of the deed, and have done so intentionally or knowingly, shall be punished with imprisonment for a term which may extend to three years, or with fine, or with both.
The above actions may not be an offence under this section if:
The offender is forced or coerced into performing the offence
The offender is a minor or not of sane mind.
However, there may be other sections under the BNS under which the above actions can be prosecuted and while they may be disqualified under the provisions of this section, such actions will still be punishable under the provisions of those respective sections of the BNS.
Illustration
A buys a property from B. In order to reduce the amount of stamp duty on registration, A asks B to state a lower price as consideration in the deed and promises to pay the remaining amount of the agreed value by cash. A and B are offenders under section 322.
Key Points in BNS Section 322
This section deals with: Dishonest or fraudulent execution of deed of transfer containing false statement of consideration.
Description of offence:
Punishment for offence:
Exceptions to offence:
Differences Between Section 322 of BNS and its Equivalent IPC Section
The BNS came into force on July 1, 2024, effectively replacing the Indian Penal Code. Section 322 of BNS replaces Section 423 of the IPC. Let us look at the changes that have been made in the provisions of the new section in comparison to the old one.
| BNS Sections/Subsections | Subject | IPC Sections | Summary of Comparison |
|---|---|---|---|
| 322 | Dishonest or fraudulent execution of deed of transfer containing false statement of consideration. | 423 | Upper limit of imprisonment is increased from two years to three years. |
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FAQs about Section 322 of the Bharatiya Nyaya Sanhita (BNS)
What is considered a fraudulent deed of transfer under Section 322?
Any deed of transfer that is found to contain false details regarding the remuneration or beneficiaries of the deed is considered a fraudulent deed of transfer.
What penalties are prescribed for such fraudulent actions?
Any person found guilty under this section shall be punished with imprisonment for a term which may extend to three years, or with fine, or with both.
Can a victim challenge the validity of a transfer deed under this section?
Yes. Any person affected by the execution of a transfer deed knows of any false details in the deed can challenge that deed.
Does this section apply to property sales and leases?
Yes. Any property related deed containing false information regarding consideration and beneficiaries shall apply under this section.
What should victims do if they discover false statements in transfer deeds?
Any person who becomes aware or has knowledge of such transactions must report the same to the police authorities immediately.
