Section 417 of the Indian Penal Code, 1860 – Punishment for Cheating:
“Whoever cheats shall be punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both.”
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Explanation of ‘Cheating’ – Section 415 of the Indian Penal Code, 1860
“Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property, to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to “cheat”. Explanation.—a dishonest concealment of facts is a deception within the meaning of the section.”
Illustrations:
(a) A, by falsely pretending to be in the Civil Service intentionally deceives Z and dishonestly induces Z to let him have on credit goods for which he does not mean to pay. A cheats.
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(b) A, by putting a counterfeit mark on an article, intentionally deceives Z into a belief that this article was made by a certain celebrated manufacturer and thus dishonestly induces Z to buy and pay for the article. A cheats.
(c) A, by exhibiting to Z a false sample of an article, intentionally deceives Z into believing that the article corresponds with the sample, and thereby dishonestly induces Z to buy and pay for the article. A cheats.
(d) A, by the tendering in payment for an article a bill on a house with which A keeps no money, and by which A expects that the bill be dishonoured, intentionally deceives Z and thereby dishonestly induces Z to deliver the article, intending not to pay for it. A cheats.
(e) A, by pledging as diamonds articles which he knows are no diamonds, intentionally deceives Z, and thereby dishonestly induces Z to lend money. A cheats.
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(f) A, intentionally deceives Z, into a belief that A means to repay any money that Z may lend to him and thereby dishonestly induces Z to lend him money, not intending to repay it. A cheats.
(g) A intentionally deceives Z into a belief that A means to deliver to Z a certain quantity of indigo plant which he does not intend to deliver, and thereby dishonestly induces Z to advance money upon the faith of such delivery.
A cheats; but A, at the time of obtaining the money, intends to deliver the indigo plant, and afterwards breaks his contract and does not deliver it, he does not cheat, but is liable only to a civil action for breach of contract.
(h) A intentionally deceives Z into a belief that A has performed A’s part of a contract made with Z, which he has not performed, and thereby dishonestly induces Z to pay money. A cheats.
(i) A sells and conveys an estate to B. A knowing that in consequence of such sale he has no right to the property, sells or mortgages the same to Z, without disclosing the fact of the previous sale and conveyance to B, and receives the purchase or mortgage money from Z, A cheats.