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Introduction of 323 BNS

This section focuses on penalizing fraudulent practices related to property. It covers dishonest removal or concealment of one’s own or another’s property, as well as fraudulent assistance in such acts. The law also applies to releasing claims to which an individual is entitled dishonestly. The section aims to protect property rights and prevent illegal manipulation of claims.


The Bharatiya Nyaya Sanhita (BNS) Section 323 replaces the old Indian Penal Code (IPC) Section 423.



What is BNS Section 323 ?

BNS Section 323 addresses fraudulent or dishonest actions involving property. It penalizes individuals who remove, conceal, or assist in the removal or concealment of property, or fraudulently relinquish claims or demands to which they are entitled. This section ensures that no person unlawfully obstructs legal claims or ownership rights.


BNS 323 addresses dishonest removal, concealment, and claim manipulation.
Protects property rights by penalizing fraudulent removal, concealment, and claims.

BNS 323 in Simple Points

1. Removal or Concealment of Property

Under BNS Section 323, any act of removing or hiding property with dishonest intent is considered an offense. This applies to both one’s property and property belonging to others. The aim is to prevent individuals from unlawfully benefiting by keeping property out of reach of rightful owners or creditors. Such actions disrupt lawful processes, like debt recovery or asset distribution, and are therefore punishable.

2. Assisting in Fraudulent Actions

The law penalizes individuals who assist others in removing or concealing property fraudulently. For instance, helping someone hide assets to evade creditors or legal claims is equally punishable. This provision ensures that not only the main offender but also their accomplices are held accountable, creating a broader deterrent against such fraudulent schemes.

3. Dishonest Release of Claims

If a person dishonestly relinquishes their legitimate claim or demand, it falls under this section. For example, knowingly giving up a financial right to deceive creditors or evade responsibilities is considered fraudulent. This ensures that claims are resolved fairly and prevents dishonest practices in financial and legal transactions, safeguarding creditors’ rights.

The punishment under this section includes imprisonment for up to three years, a fine, or both. The offense is bailable and non-cognizable, meaning police cannot investigate without a Magistrate’s approval. It is triable by any Magistrate, which allows for swift legal proceedings. The flexible punishment system enables courts to consider the offense’s severity when deciding on penalties.

BNS Section 323 aims to protect creditors, individuals, and the legal system from fraud. By addressing deceitful practices like hiding assets or transferring property without adequate consideration, it upholds fairness and accountability. This provision ensures that assets remain accessible for lawful claims, maintaining trust and integrity in financial and legal transactions.


Section 323 BNS Overview

BNS Section 323 addresses dishonest or fraudulent acts involving the removal, concealment, or release of property to harm others or evade legal responsibilities. It includes assisting in such fraudulent activities. The section ensures accountability for any deceitful act related to property management. Punishment includes imprisonment, fine, or both, depending on the offense’s severity.

10 Key Points of BNS Section 323

1. Scope of the Offense:
BNS Section 323 addresses dishonest or fraudulent acts involving the removal or concealment of property. It covers situations where a person either hides their own or someone else’s property with wrongful intent. This ensures legal accountability for actions that deprive rightful owners or creditors of access to the property.

2. Assistance in Concealment or Removal:
The law includes individuals who assist others in fraudulently removing or concealing property. This ensures that accomplices in such acts are also penalized, creating a broader deterrent against fraudulent practices.

3. Release of Claims:
If someone dishonestly releases a demand or claim they are entitled to, it falls under this section. For instance, knowingly giving up a financial claim to deceive creditors is punishable. This provision ensures fair distribution and justice in financial matters.

4. Intent and Fraudulence:
The offense under this section requires dishonest or fraudulent intent. Accidental acts or misunderstandings do not qualify. Intentional deceit to benefit oneself or harm others is the focus, making intent a crucial element.

5. Punishment Details:
The punishment includes imprisonment for up to 3 years, or a fine, or both. The flexible sentencing allows the judiciary to impose penalties based on the severity and circumstances of each case.

6. Bailable and Non-Cognizable Nature:
The offense is bailable, meaning the accused can secure bail, and non-cognizable, requiring a Magistrate’s approval for investigation. This reflects the moderate seriousness of the offense.

7. Triable by Magistrate:
Cases under Section 323 are triable by any Magistrate. This ensures that such cases are resolved efficiently and without undue delays, given their less severe but significant nature.

8. Protection Against Financial Fraud:
The provision safeguards individuals and creditors against fraudulent actions involving property or financial claims. By penalizing deceitful practices, it upholds the integrity of financial and legal transactions.

9. Broad Applicability:
The law applies to any individual engaging in dishonest concealment or removal of property, regardless of their status or relationship to the property owner. It emphasizes fairness and accountability.

10. Examples of the Offense:
Examples include someone hiding their assets to avoid paying creditors or fraudulently transferring property to another person without fair consideration. Such acts disrupt legal processes and are punishable under this section.

2 Examples of BNS Section 323

Example 1:
A debtor hides valuable jewelry at a friend’s house to prevent creditors from claiming it during insolvency proceedings. This act constitutes fraudulent concealment under BNS Section 323.

Example 2:
An individual dishonestly transfers ownership of their car to a relative to evade paying debts. This fraudulent removal of property violates this section.


BNS 323 Punishment

  • Imprisonment: Up to 3 years.
  • Fine: At the discretion of the court.
  • Both: In some cases, both imprisonment and a fine may be imposed.

Punishment under BNS 323 includes up to 3 years imprisonment, fines, or both.
Legal consequences for property-related fraud: imprisonment, fines, or both.

BNS 323 bailable or not ?

Bailable: The accused has the right to seek bail during the legal process.The offense is non-cognizable, meaning police need a Magistrate’s permission to investigate.Trials for offenses under this section are conducted by any Magistrate.


Bharatiya Nyaya Sanhita Section 323

BNS SectionOffensePunishmentBailable/Non-BailableCognizable/Non-CognizableTrial by
323Dishonest or fraudulent removal, concealment, or assistance in such acts regarding property.Imprisonment up to 3 years, fine, or both.BailableNon-CognizableAny Magistrate

BNS Section 323 FAQs

1. What is the main focus of BNS Section 323?

2. What is the punishment for offenses under BNS Section 323?

3. Is BNS Section 323 bailable?

Yes, it is a bailable offense, allowing the accused to seek bail.

4. Who can try cases under this BNS Section 323 ?

5. Is the BNS 323 offense compoundable?


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