Section 423 of IPC : Section 423: Dishonest Or Fraudulent Execution Of Deed Of Transfer Containing False Statement Of Consideration

Explanation using Example

Imagine a man named Rohan who wants to sell his property to another person, Amit. Rohan creates a sale deed that states the property is being sold for 50 lakhs INR, but in reality, he is selling it for 70 lakhs INR. The lower price is mentioned to evade stamp duty and taxes. Rohan and Amit both sign the deed knowing the information about the consideration is false. This act of creating and signing a deed with false information about the consideration falls under the purview of Section 423 of The Indian Penal Code, 1860. If caught, both Rohan and Amit could face imprisonment of up to two years, a fine, or both for their fraudulent action.