Whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat". Illustration: A, by falsely pretending to be a Government Officer, intentionally deceives B, and thus dishonestly induces to let him pay credit for goods for which he does not mean to pay. A Cheats.
Punishment for Cheating According to Section 417 of IPC: Whoever cheats shall be punished with imprisonment of either description for a term which may extend to one year, or with fine or with both.
Note: the above offence is Non-Cognizable and Bailable and triable by any Magistrate, and therefore application U/s 156 (3) or Private Complaint U/s 200 may be preferred.
Cheating and dishonestly inducing delivery of property.—Whoever cheats and thereby dishonestly induces the person de¬ceived to deliver any property to any person, or to make, alter or destroy the whole or any part of a valuable security, or anything which is signed or sealed, and which is capable of being converted into a valuable security, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
The word property may simply be defined as all things which can be measured in value in money terms, including the money itself, and the said thing capable of being possessed by a person, to the exclusive use/ enjoyment as the owner of that thing from rest of the world.
Section 24 defines what is “acting dishonestly”. When the doing of any act or not doing any act causes a wrongful gain of property to one person or a wrongful loss of property to a person, the said act is done dishonestly. Wrongful means unlawfully. See section 471.
Section 23 defines what is Wrongful loss and Wrongful gain. The Wrongful means affecting a person of his legal right. For Wrongful loss or gain, any property, movable or immovable must be lost to the owner, or the owner must be, without any reason, is deprived of its beneficial use.
Section 25: "Fraudulently" A person is said to do a thing fraudulently if he does that thing with intent to defraud but not otherwise.
Note: The offence is cognizable and Non-Bailable; and triable by Magistrate of the First Class; and therefore FIR or Application u/s 156(3) should be registered by the Police or If Police refuses to take cognizance than Private Complaint u/s 200 may be preferred.