IPC Section 423
Here is a clear explanation of IPC Section 423:
Section 423 – Dishonest or fraudulent execution of deed of transfer containing false statement of consideration
Legal Text:
"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 two years, or with fine, or with both."
Key Elements of the Offence:
The person must knowingly and dishonestly:
Sign or be part of a deed/instrument of transfer (like sale, mortgage, gift, etc.),
Include a false statement about:
The consideration (i.e., the price or value involved in the transfer), or
The true beneficiary of the transaction.
This section targets fraudulent property transactions where the real facts are concealed to mislead or cheat.
Punishment:
Imprisonment up to 2 years, or
Fine, or
Both.
Summary:
Section 423 IPC punishes fraudulent execution of property-related documents where the consideration amount or beneficiary is falsely stated, with an intention to deceive. This helps prevent benami transactions, tax evasion, or hiding ownership.
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