Dishonest or fraudulent execution of deed of transfer containing false statement of consideration
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Summary
Signing or joining a deed or instrument that pretends to transfer property but contains a dishonest or fraudulent false statement about the consideration or about who will benefit is an offence. It applies when a transfer or charge document misstates the payment or the real beneficiary. Punishment can be imprisonment up to two years, or a fine, or both.
Example
Rohan sells his shop to Karan but the sale deed falsely records the price as ₹20,000 when the real payment was ₹2,00,000 to hide the true consideration. Under this section those who dishonestly signed or joined that deed can be punished with up to two years imprisonment, a fine, or both.
Bare Act
Enacted textWhoever 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.
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