Legal Notice for Cheating and Fraud (Section 318 BNS) Format
A cheating and fraud notice is a written demand to a person who deceived you into parting with money or property, asking for it back by a deadline. It records the deception under Section 318 of the Bharatiya Nyaya Sanhita, 2023 (which replaced Section 420 of the IPC) and reserves your civil and criminal remedies, including an FIR.
When to send this notice
Use this notice when someone induced you to pay or hand over property through a false promise, a fake identity or concealed facts, and you want repayment before escalating. A notice is not required before you report cheating to the police. Do not use it as a threat to force payment, and if the dispute is only a failed contract, use the breach of contract or recovery notice.
Statutory basis
Section 318(1) of the Bharatiya Nyaya Sanhita, 2023 defines cheating as deceiving a person, including by dishonest concealment of facts, so as to dishonestly or fraudulently induce them to deliver property, consent to its retention, or do or omit something that causes or is likely to cause harm to their body, mind, reputation or property. Section 318(2) punishes cheating with imprisonment up to three years, a fine, or both. Section 318(3) covers cheating with knowledge that it is likely to cause wrongful loss to a person whose interest the offender was bound to protect, with imprisonment up to five years. Section 318(4), the counterpart of the old Section 420 of the Indian Penal Code, punishes cheating that dishonestly induces delivery of property or the making or destruction of a valuable security, with imprisonment up to seven years and a fine. Under the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023, simple cheating under Section 318(2) is non-cognizable and bailable, so police need a Magistrate’s order to investigate it (Section 174), while Section 318(4) is cognizable and non-bailable. Cheating by personation is punished under Section 319 and criminal breach of trust under Section 316. When information about a cognizable offence is given to the police, Section 173 of the Bharatiya Nagarik Suraksha Sanhita, 2023 requires it to be recorded; if the officer refuses, the complainant can send the information to the Superintendent of Police under Section 173(4), apply to a Magistrate under Section 175(3), or file a complaint before a Magistrate under Section 223. Online fraud may also fall under Section 66D of the Information Technology Act, 2000. Courts have repeatedly held that a mere breach of contract is not cheating unless there was a dishonest intention from the start, so the notice should state facts showing deception at inception. A civil suit for recovery of money can run alongside a criminal case.
[ON THE LETTERHEAD OF THE ADVOCATE]
By Registered Post A/D & Email
Date: [DD/MM/YYYY]
To,
[Name of Person / Entity]
[Address]
Subject: Notice demanding return of Rs. [Amount] / property obtained by deception, and reserving civil and criminal remedies.
Sir/Madam,
Under instructions from my client, [Name], of [Address] ("my client"), I serve upon you the following notice:
1. That on [DD/MM/YYYY], you represented to my client that [state the specific false representation, e.g. you would deliver (goods / shares / a plot) / you held (title / licence / position) / the investment carried assured returns].
2. That relying on those representations, my client paid / delivered Rs. [Amount] / [property] to you on [dates] by [mode and reference].
3. That the representations were false to your knowledge, as shown by [facts, e.g. you never owned the property / the licence does not exist / you stopped responding and switched off your number / you used a false identity], and you made them dishonestly at the very beginning to induce my client to part with the money.
4. That your acts amount to cheating, as defined in Section 318 of the Bharatiya Nyaya Sanhita, 2023, and have caused my client wrongful loss of Rs. [Amount].
I therefore call upon you to return Rs. [Amount] with interest at [__]% per annum from [date] to my client within fifteen (15) days of receipt of this notice. If you fail, my client reserves the right to pursue civil recovery and to avail of all remedies available under law, including lodging a criminal complaint, at your risk, cost, and consequences.
[Advocate Name]
[Enrolment No. / Contact] Replace every [placeholder] with your own details before use.
How to send this legal notice
From draft to proof of delivery and the next legal step.
Collect all proof of the false statements and the transfer: messages, emails, advertisements, bank records, receipts and call logs.
Establish dishonest intention at the outset, since a failed deal alone is only a civil dispute.
Report immediately if the fraud was online, on the National Cyber Crime Reporting Portal or helpline 1930, to help freeze the funds.
Draft the notice stating the representation, the payment, the falsity and the amount demanded, without threatening criminal action to extract money.
Send it by Registered Post A/D and email and preserve proof of delivery.
If there is no repayment, lodge an FIR for cheating or approach the Magistrate, and file a civil suit for recovery in parallel.
Frequently asked questions
Do I have to send a legal notice before filing an FIR for cheating?
No. Cheating that induces delivery of property (Section 318(4) BNS) is cognizable, so police must record the information under Section 173 of the BNSS, and if they refuse you can approach the Superintendent of Police and then the Magistrate. Simple cheating under Section 318(2) is non-cognizable, so the police need a Magistrate’s order to investigate it.
What is the BNS section for cheating, instead of IPC 420?
Cheating is covered by Section 318 of the Bharatiya Nyaya Sanhita, 2023. Section 318(4), which punishes cheating that induces delivery of property with up to seven years’ imprisonment and a fine, replaces the old Section 420 of the IPC.
Is a failed deal or unpaid loan cheating?
Not by itself. Courts require proof of dishonest intention when the promise was made. If you only have a breach of contract or unpaid debt, a recovery or breach of contract notice and a civil suit are the correct route.
Related notice formats
Cheque Bounce Legal Notice (Section 138 NI Act) Format
Debt & RecoveryLetter of Demand Format (Letter of Demand vs Legal Notice)
Property & TenancyEviction Notice to Tenant (Notice to Quit) Format
EmploymentLegal Notice for Unpaid Salary / Wages Dues Format
Reputation & TortsLegal Notice for Defamation Format
ConsumerLegal Notice to Seller / Service Provider (Consumer Complaint) Format
From template to tracked notice
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