Bharatiya Nyaya Sanhita, 2023
Section 323 BNS: Dishonest or Fraudulent Removal or Concealment of Property
Section 323 of the Bharatiya Nyaya Sanhita, 2023 punishes dishonest or fraudulent concealment or removal of property, assistance in such concealment or removal, and dishonest release of a demand or claim to which a person is entitled.
Section 323 BNS - Statutory Provision
Section 323 applies where a person dishonestly or fraudulently conceals or removes his own property or the property of another person, dishonestly or fraudulently assists in that concealment or removal, or dishonestly releases a demand or claim to which he is entitled.
The provision is part of the BNS group dealing with fraudulent deeds and dispositions of property. It extends beyond direct concealment because a person who assists in the concealment or removal can also fall within the section.
Essential Ingredients of Section 323 BNS
The main ingredients are:
- there must be property, or a demand or claim to which the accused is entitled;
- the accused must conceal or remove property, assist in doing so, or release the demand or claim;
- the property may belong to the accused or to another person; and
- the conduct must be dishonest or fraudulent, as applicable under the statutory wording.
The mental element is central. Mere movement of property, assistance in handling property, or settlement of a claim does not by itself establish Section 323 unless the required dishonest or fraudulent character is proved.
Property of the Accused or Another Person
Section 323 expressly covers property belonging to the accused as well as property belonging to another person. Therefore, liability is not confined to concealment or removal of someone else's property.
The key issue is whether the property was concealed or removed dishonestly or fraudulently.
Assisting in Concealment or Removal
A person need not personally carry out the physical concealment or removal. Section 323 separately covers dishonest or fraudulent assistance in the concealment or removal of property.
The prosecution must still establish the nature of the assistance and the required dishonest or fraudulent state of mind.
Dishonest Release of a Demand or Claim
The section also covers a different kind of conduct: dishonestly releasing a demand or claim to which the accused is entitled.
This means Section 323 can apply not only to physical property but also to a legally enforceable demand or claim where the release is made dishonestly.
Dishonest or Fraudulent Mental Element
The statutory wording repeatedly requires dishonest or fraudulent conduct. Accordingly, ordinary commercial decisions, bona fide settlements or lawful transfers should not be treated as falling within Section 323 merely because they affect property or claims.
The facts surrounding the transaction, purpose of the concealment or removal, knowledge of the parties and nature of the benefit or loss may be relevant to proving the required mental element.
Punishment, Cognizability, Bail and Trial Court
| Provision | Section 323 BNS |
|---|---|
| Offence | Dishonest or fraudulent removal or concealment of property, assistance in doing so, or dishonest release of a demand or claim |
| Punishment | Imprisonment of either description up to three years, or fine, or both |
| Cognizable | No - non-cognizable |
| Bailable | Yes |
| Trial court | Any Magistrate |
Compounding Under the BNSS
The Bharatiya Nagarik Suraksha Sanhita, 2023 lists Section 323 among compoundable offences. The person identified as competent to compound the offence is the person affected by the fraudulent removal or concealment of property.
Compounding should be considered with reference to the exact charge and the procedural requirements of Section 359 BNSS.
Official Legal Sources
For authoritative statutory wording, procedural classification and compounding provisions, consult India Code, NCRB and the Ministry of Home Affairs resources listed in the right sidebar. The official BNS and BNSS materials prevail in case of any discrepancy in a secondary source.
Frequently Asked Questions
What does Section 323 BNS punish?
It punishes dishonest or fraudulent concealment or removal of property, assistance in doing so, and dishonest release of a demand or claim to which the offender is entitled.
Can Section 323 apply to a person's own property?
Yes. The section expressly covers property belonging to the offender as well as property belonging to another person.
What is the punishment under Section 323 BNS?
The punishment is imprisonment of either description up to three years, or fine, or both.
Is Section 323 BNS cognizable?
No. It is non-cognizable.
Is Section 323 BNS bailable?
Yes. It is bailable.
Which court tries Section 323 BNS?
The offence is triable by any Magistrate.
Can Section 323 be compounded?
Yes. BNSS Section 359 lists the offence as compoundable by the person affected, subject to the applicable procedural requirements.
This page provides general legal information. Application of Section 323 depends on the facts, evidence and law applicable to the individual case.