Bharatiya Nyaya Sanhita, 2023
Section 243
Fraudulent removal or concealment of property to prevent its seizure as forfeited or in
Whoever fraudulently removes, conceals, transfers or delivers to any person any property or any interest therein, intending thereby to prevent that property or interest therein from being taken as a forfeiture or in satisfaction of a fine, under a sentence which has been pronounced, or which he knows to be likely to be pronounced, by a Court or other competent authority, or from being taken in execution of a decree or order which has been made, or which he knows to be likely to be made by a Court in a civil suit, shall be punished with imprisonment of either description for a term which may extend to three years, or with fine which may extend to five thousand rupees, or with both.
Why this exists
Court orders and fines are meaningless if the person who owes money can simply move their assets out of reach beforehand. This provision, earlier Section 206 of the Indian Penal Code, 1860, protects the enforceability of court judgments and criminal fines by punishing deliberate attempts to frustrate their execution through asset concealment.
Common misconceptions
- Myth: Transferring assets to a family member before a judgment is a smart, legal way to protect them.
Fact: If done with fraudulent intent to defeat a fine or decree you know is coming, such a transfer is itself a punishable offence.