Keeping something you found, rather than stole, is not a crime.

Dishonestly deciding to keep or use property that clearly belongs to someone else, even if you innocently found it, is a separate offence called criminal misappropriation.

Indian Penal Code, 1860

Section 403

repealed

Dishonest misappropriation of property

Whoever dishonestly misappropriates or converts to his own use any movable property, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.§

Why this exists

This section covers situations where a person comes to possess someone else's property lawfully or innocently, for example by finding it, but then dishonestly decides to keep it or use it as their own, rather than returning it to the rightful owner. This is different from theft, where the property is taken dishonestly from the start; here, the dishonesty arises only later, once the person decides not to return the property. This distinct offence of criminal misappropriation continues under a similarly structured provision in the Bharatiya Nyaya Sanhita, 2023, which replaced the Indian Penal Code in 2024.

How courts read it

In K.N. Mehra v. State of Rajasthan (1957), while primarily a theft case, the Supreme Court's discussion of dishonest intention and temporary use of another's property without consent is often cited alongside this section, since criminal misappropriation similarly focuses on the dishonest decision to treat someone else's property as one's own, whether or not there was any plan to return it.

Common misconceptions

Myth: Keeping something you found, rather than stole, is not a crime.
Fact: Dishonestly deciding to keep or use property that clearly belongs to someone else, even if you innocently found it, is a separate offence called criminal misappropriation.