Introduction  

Cheating is considered as a criminal offence under the Indian Penal Code.  

It is done in order to gain profit or an advantage from another person by using some deceitful means. 

Definition  

Section 415 states that whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat". 

Illustrations

A, by falsely pretending to be in the Civil Service, intentionally deceives Z, and thus dishonestly induces Z to let him have on credit goods for which he does not mean to pay. A cheat.  

A, by putting a counterfeit mark on an article, intentionally deceives Z into a belief that this article was made by a certain celebrated manufacturer, and thus dishonestly induces Z to buy and pay for the article. A cheat. 

Ingredients of Cheating 

Section 415 has two alternate parts, in the very first part the person must ‘dishonestly’ or ‘fraudulently’ induce the complainant to deliver any property while in the second part, the person should intentionally induce the complainant (the person so deceived) to do or omit to do a thing.   

The main ingredients of Section 415 which have to be proved to obtain conviction for cheating are as follows: 

For the First Part 

The accused deceived some person. 

By deception he induced that person. 

The above inducement was fraudulent and dishonest. 

The person so induced delivered some property to or consented to the retention of some property by any person. 

For the Second Part 

The accused deceived some person. 

The accused thereby induced him. 

Such inducement was intentional. 

The person so induced did or omitted to do something. 

Such an act or omission caused or was likely to cause damage or harm to the person induced in body, mind, reputation or property. 

Deception 

A person deceives another when he causes one to believe what is false or misleading as a matter of fact or leads to error. Deception is a necessary ingredient for the offences of cheating under both parts of the section.  

To constitute the offence of cheating ‘deception’ must precede and thereby induce the other person to either;  

Deliver or retain property. 

To commit the act or omission. 

Whenever a person fraudulently represents as an existing fact that which is not an existing fact, he commits an offence of cheating. What actually constitutes deception is a matter of evidence in each case depending upon the facts and circumstances. Where there is no evidence of deception then the offence of cheating should not be established. 

Willful Representation and Cheating 

Where there is willful misrepresentation with intent to defraud, it will amount to cheating. However, it is important to see that when the misrepresentation was made it was false to the knowledge of the accused. 

Dishonest Intention

To hold a person guilty of cheating, it is necessary to show that he had fraudulent or dishonest intentions at the time of making the promise. 

Inducement 

The person cheated must have been intentionally induced to do an act which he would have done due to the deception caused to him. Section 415 clearly shows that mere deceit is not sufficient to prove the offence.  

Likewise, committing something fraudulently or dishonestly is also not sufficient. The effect of the fraudulent or dishonest act must be such that it induces the person deceived to deliver property or do something (in the form of an act or omission).  

Case:

Shri Bhagwan Samardha Sreepadha Vallabha Venkata Vishwanandha Maharaj v. State of Andhra Pradesh,  

The Supreme Court held that the representation made by the accused in an appeal that he had divine healing powers through his touches, thereby making the complainant believe that he could cure his little girl of her congenital dumbness through his divine powers was fraudulent and amounted to inducement. Thus, believing the promises, the complainant was induced to believe in the divine powers and shell out money to the so-called Godman. 

Punishment for Cheating 

Section 417 states that whoever cheats shall be punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both. 

Cheating by Personation 

Section 416 of the Code states that, a person is said to "cheat by personation" if he cheats by pretending to be some other person, or by knowingly substituting one person for another, or representing that he or any other person is a person other than he or such other person really is. 

Illustrations  

A cheat by pretending to be a certain rich banker of the same name. A cheat by personation.  

A cheat by pretending to be B, a person who is deceased. A cheat by personation. 

Punishment for Cheating by Personation 

Section 419 of the Code states that whoever cheats by personation shall be punished with imprisonment of either description for a term which may extend to three years, or with fine, or with both. 

Cheating and Dishonestly Inducing Delivery of Property: Section 420 deals with certain aggravated forms or specified classes of cheating.  

It deals with cases of cheating, whereby, the deceived person is dishonestly induced; 

To deliver any property to any person. 

 To make, alter or destroy; 

 The whole or any part of a valuable security. 

Anything which is signed or sealed, and which is capable of being converted into a   valuable security. 

It is required to prove that the complainant has parted with the property due to dishonest inducement of the accused. The property so delivered must have some money value to the person cheated. 

The maximum punishment which can be awarded under this section is imprisonment for a term of 7 year and fine. 

Conclusion 

Cheating is an offence under IPC in which a person induces the other by deceiving the person to do any act or to omit to do an act. The intention of the accused plays an important part and is taken into consideration while deciding his liability. The two main elements that have to be considered to constitute the offence is deception and inducement. The intention to cheat on part of the accused at the time of making a false representation is needed to be proved. It must be shown that a promise was made by the accused and he failed to keep the promise and further, no effort was put in by him in order to keep the promise.