Dishonest or fraudulent execution of deed of transfer containing false statement of consideration

What this section does

This section punishes a person who dishonestly or fraudulently signs, executes, or becomes party to a deed or instrument purporting to transfer or charge property, where the deed contains a false statement about the consideration or about the intended beneficiary. It targets fraudulent conveyances designed to mislead creditors or others about the true nature of a transaction.

AI-generated plain-language summary. For the binding statutory text, see India Code (official).

Quick reference

Punishment

Imprisonment of either description for a term which may extend to three years, or fine, or both.

Triable by

Magistrate of First Class

Cognizable

No

Bailable

Yes

Compoundable

No

Ingredients (what prosecution must prove)

1. The accused signed, executed, or became a party to a deed or instrument
2. The deed purported to transfer property or subject it to a charge
3. The deed contained a false statement relating to the consideration for the transfer or charge, or relating to the person(s) for whose benefit it was really intended to operate
4. The accused acted dishonestly or fraudulently

Derived from IPC s.423.