Indian Penal Code, 1860
Section 424
repealedDishonest or fraudulent removal or concealment of property
Whoever dishonestly or fraudulently conceals or removes any property of himself or any other person, or dishonestly or fraudulently assists in the concealment or removal thereof, or dishonestly releases any demand or claim to which he is entitled, 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 is a broader, catch-all provision covering dishonest concealment, removal, or release of claims related to property that may not fit precisely within the more specific sections like 421 or 423. It exists to cover general dishonest schemes involving hiding assets or waiving entitlements to defraud others, filling gaps left by the more narrowly worded provisions. Under the Bharatiya Nyaya Sanhita, 2023, this corresponds to Section 320.
How courts read it
Courts examine the specific dishonest or fraudulent purpose behind the concealment, removal, or release of a claim, since this section is broadly worded and can apply to a wide range of situations not squarely covered by the more specific creditor-related offences.
Common misconceptions
- Myth: This section only applies to a person's own property.
Fact: This section applies to dishonest concealment or removal of property belonging to the accused or to any other person, as well as to dishonestly releasing a demand or claim one is entitled to.