Criminal breach of trust

All Acts ⚖️BNS 📋CPC 🛡️CrPC 🏛️COI 💍HMA 🧾ITA ⚖️IPC

⇄

This provision is now IPC Section 406 (Punishment for criminal breach of trust) under the Indian Penal Code, effective from 1 July 2024. FIRs registered after that date cite the new section number.

What does this section state?

Section 316 of the Bharatiya Nyaya Sanhita replaces IPC Section 406, retaining the same core offence: dishonest misappropriation or conversion of property by someone who was lawfully entrusted with it or given dominion over it. The punishment — up to three years' imprisonment, or a fine, or both — is also unchanged from the earlier provision.

As before, the prosecution must establish both that a genuine entrustment existed and that the accused dealt with the property dishonestly and in violation of that trust — an honest business loss or a mistaken handling of funds does not, by itself, meet this standard.

This section applies to breaches of trust occurring on or after 1 July 2024, with earlier conduct continuing to be prosecuted under IPC Section 406.

Punishment Imprisonment up to 3 years, or fine, or both

Triable By Magistrate of the First Class

Bailable Bailable

Cognizable Non Cognizable

Compoundable Compoundable With Permission

Frequently Asked Questions

Is BNS Section 316 bailable?

This is a bailable offence, meaning bail can generally be granted as a matter of right by the police or the court.

What is the punishment under this section?

Imprisonment up to 3 years, or fine, or both. Courts have discretion based on the facts of each case, and the actual outcome can vary.

Can a case under this section be compounded (settled)?

Yes, but only with the permission of the court. The parties can reach a settlement, which the court must then approve before the case is closed.

Is the definition of "entrustment" the same as before?

Yes — the section retains the same requirement that the accused was lawfully entrusted with property or given dominion over it, before dishonestly misappropriating or converting it, exactly as under IPC Section 406.

Does this section apply to company directors or partners?

Yes — as under the earlier provision, this section can apply to directors, partners, or agents who dishonestly misappropriate property or funds they were entrusted with in their role.

What is the maximum punishment under this section?

Up to three years’ imprisonment, or a fine, or both — the same punishment structure carried forward unchanged from IPC Section 406.

Facing a case under this section?

Get a free case assessment from a verified criminal lawyer.

Talk to a Criminal Lawyer

This page is for general information only and is not a substitute for advice from a qualified advocate. Always verify against the current official bare act.