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Section 316 — Criminal breach of trust
316
316
Criminal breach of trust
Bharatiya Nyaya Sanhita, 2023 • Previously IPC Section 405
Chapter XVII Of Offences Against Property
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Reviewed by Advocate Aditi Babbar, Seasoned Advocate · Practicing since 31 years
📅 Updated 2026-04-10📚 Source: The Gazette of India
Property OffencesBreach Of TrustFinancial CrimeWhite Collar CrimeSeriousPreviously IPC 405
🗣️ Simple Explanation
What does this law say? Section 316 of the Bharatiya Nyaya Sanhita (BNS) deals with criminal breach of trust. This means if a person is trusted with property and then misuses it, they've broken the law. This includes using the property in a way that goes against the law or a contract.
Why does this law exist? This law protects people's property and ensures that those entrusted with it act honestly. It prevents people from taking advantage of others.
Real-life impact Imagine you lend a friend money, and they use it for something else. This law helps protect you from such dishonest actions. It ensures people are held accountable for misusing what they're entrusted with.
What happens if you break this law? You could face jail time for up to five years, a fine, or both. If you are a carrier, wharfinger or warehouse-keeper, the jail time can extend to seven years. If you are a public servant, banker, merchant, factor, broker, attorney or agent, you could face imprisonment for life or up to ten years.
⚖️ Punishment

Imprisonment up to life, or imprisonment up to ten years, or fine, or both.

💡 Real Life Example

Rahul, a shopkeeper, was entrusted with a customer's expensive watch for repair. Instead of fixing it, he sold it. This is criminal breach of trust. He will face legal consequences. Amit, a company's accountant, used company funds for personal expenses. This is also criminal breach of trust. He could be arrested and face a trial.

🛡️ KNOW YOUR RIGHTS
  • •Report the breach of trust to the police immediately.
  • •Seek legal advice from a lawyer.
  • •Gather evidence like contracts or receipts.
  • •If falsely accused, cooperate with the investigation and provide evidence of your innocence.
  • •You have the right to legal aid if you cannot afford a lawyer.
❓ FREQUENTLY ASKED QUESTIONS
Section 316 of BNS addresses criminal breach of trust. It means misusing property that you were entrusted with. This includes using it dishonestly or against the law. This section replaces the old Section 405 of the IPC. It aims to protect people from dishonest handling of entrusted property.
The punishment varies depending on the situation. Generally, you could face up to five years in jail, a fine, or both. If you are a carrier, wharfinger or warehouse-keeper, the jail time can extend to seven years. If you are a public servant, banker, merchant, factor, broker, attorney or agent, you could face imprisonment for life or up to ten years.
Whether it's bailable depends on the specific circumstances and the severity of the breach. Some instances may be bailable, while others, especially those involving public servants or large sums of money, may be non-bailable. The police can arrest without a warrant in some cases.
Sources & References

📒 Legal text sourced from The Gazette of India & AdvocateKhoj Bare Acts Library

⚖️ Content reviewed by Advocate Aditi Babbar, Seasoned Advocate, with 31 years of legal practice

📚 Act Reference: Bharatiya Nyaya Sanhita, 2023 (replaces IPC)

Disclaimer: This content is for informational purposes only and does not constitute legal advice. Consult a qualified advocate for specific legal matters.

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