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Section 320 — Dishonest or Fraudulent removal or concealment of property to prevent distribution among creditors
320
320
Dishonest or Fraudulent removal or concealment of property to prevent distribution among creditors
Bharatiya Nyaya Sanhita, 2023
Chapter XVII Of Offences Against Property
⚖️
Reviewed by Advocate Aditi Babbar, Seasoned Advocate · Practicing since 31 years
📅 Updated 2026-04-10📚 Source: The Gazette of India
Property OffencesFraudDebtFinancial CrimeModerate
🗣️ Simple Explanation
What does this law say? Section 320 of the BNS addresses the dishonest or fraudulent removal or concealment of property. This means if someone hides or transfers property to prevent creditors from getting it, they've broken the law.
Why does this law exist? This law protects creditors and ensures fair distribution of assets. It prevents people from avoiding their debts through dishonest means. This promotes financial responsibility.
Real-life impact If a person hides their assets to avoid paying their debts, they are breaking this law. This law helps creditors recover what they are owed.
What happens if you break this law? You could face jail time for at least six months, up to two years, a fine, or both.
⚖️ Punishment

Imprisonment for a term which shall not be less than six months but which may extend to two years, or fine, or both.

💡 Real Life Example

Rahul, facing debt, transferred his property to a friend to avoid creditors. This is a violation of this section. Priya hid her assets to prevent them from being seized. This is also illegal. Amit, knowing a company is going bankrupt, secretly moves assets.

🛡️ KNOW YOUR RIGHTS
  • •Report the fraudulent activity to the authorities.
  • •Gather evidence of the property transfer or concealment.
  • •Seek legal advice from a lawyer.
  • •You have the right to legal aid.
  • •If falsely accused, gather evidence to prove your innocence.
❓ FREQUENTLY ASKED QUESTIONS
Section 320 of BNS deals with the dishonest or fraudulent removal or concealment of property. This means if someone hides or transfers property to prevent creditors from getting it, they've broken the law. This section aims to protect creditors and ensure fair distribution of assets.
The punishment for violating Section 320 of BNS is imprisonment for a term that shall not be less than six months but which may extend to two years, a fine, or both. This section aims to deter individuals from fraudulently concealing or transferring property to avoid paying debts.
Yes, this is a bailable offense. The police can arrest without a warrant.
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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