Understanding Criminal Breach of Trust in India
People often entrust others with valuable items, money, or responsibilities, but what happens when that trust is broken in a dishonest way? Criminal breach of trust stands as a major offence in Indian law. It takes place when someone who receives property in a position of trust dishonestly uses it for their own gain or against the owner’s wishes. This can lead to significant financial and reputational losses.
As of 2025, the offence of Criminal Breach of Trust is primarily governed by Section 316 of the Bharatiya Nyaya Sanhita (BNS), 2023. This new law, which replaced the Indian Penal Code (IPC) from 1 July 2024, has streamlined previous sections and brought clarity to the legal framework. Courts across India, from the Supreme Court to state high courts, continue to stress the importance of proving dishonest intention to establish the offence.
What is Criminal Breach of Trust?
Imagine you lend your car to a friend for a short trip, but they sell it and pocket the money. That is Criminal Breach of Trust in action. The law defines this crime as a dishonest misuse of property by a person who was entrusted with it. Specifically, it arises when a person entrusted with property or dominion over it:
- Dishonestly misappropriates the property.
- Converts the property for personal use or another’s benefit.
- Uses it against lawful directions or agreements under which it was entrusted.
The term entrustment is key. It implies that the property was given to the accused in a fiduciary or trust-based capacity, such as an employee, a banker, or a trustee. If this trust is violated, the accused faces liability under the new laws.
Legal Framework: Section 316 of the BNS (Earlier Section 405 IPC)
The Bharatiya Nyaya Sanhita, 2023, is the new backbone for Criminal Breach of Trust cases. Under Section 316 of the BNS:
- Any person entrusted with property who dishonestly misappropriates or converts it for their own use commits this offence.
The law sets out different punishments depending on the accused’s role, which is a key update from the previous law:
- Section 316(1): For general cases, the punishment is imprisonment for up to 3 years, a fine, or both.
- Section 316(3): When the offence is committed by a clerk or a servant, the imprisonment can extend up to 7 years, along with a fine.
- Section 316(4): If a public servant, banker, merchant, or agent commits this offence, they face a more severe punishment with imprisonment that may extend to 10 years and a fine.
These changes reflect the government’s commitment to curbing financial fraud and increasing accountability for individuals in positions of power.
Key Elements to Prove Criminal Breach of Trust
To secure a conviction under Section 316 BNS, the prosecution must prove the following elements:
- Entrustment of Property: The accused must have been entrusted with property or dominion over it by the owner.
- Dishonest Intention: The accused must have had the dishonest intention to cause wrongful gain or wrongful loss. This is the heart of the offence.
- Misappropriation or Conversion: The accused must have misused, diverted, or converted the property for their own benefit or someone else’s.
- Violation of Terms: The actions must go against the terms of the trust or lawful directions.
In a 2024 Supreme Court ruling on the Delhi Race Club case, judges clarified that entrustment alone provides the basis, but dishonest intent seals the offence. This helps to distinguish Criminal Breach of Trust from simple cheating, where the intent to deceive exists from the very beginning.
Recent Judgements and Updates in 2025
Courts across the country have been active in clarifying the new BNS provisions. Here are some key rulings from 2024 and 2025:
- State of Uttar Pradesh vs. X (Supreme Court, 2025): The Court clarified that mere failure to return property is not sufficient to constitute Criminal Breach of Trust unless dishonest intention at the time of entrustment can be proven. This is a crucial point for anyone facing such charges.
- HDFC Bank CEO FIR (Bombay High Court, 2024): This high-profile case reiterated the need for concrete evidence of dishonest intent before charging an individual with Criminal Breach of Trust. The case highlights that courts are careful to prevent the misuse of criminal law for civil disputes.
- Bank Manager, Shimla Case (2025): A senior bank manager was recently booked for embezzling ₹3.7 crore under Section 316(5) BNS for misusing client funds. This shows the strict liability now being applied to financial professionals under the new law.
Filing a Case and Seeking Legal Help
If you suspect or experience a Criminal Breach of Trust, here is a step-by-step process to follow:
- Report the Incident: Immediately file a First Information Report (FIR) at your local police station. In many states like Maharashtra, you can also use online portals for quicker action.
- Gather Evidence: Collect all relevant documents, such as contracts, bank statements, emails, or any proof that supports your claim. A good criminal lawyer in India will tell you that solid evidence is key.
- Get Legal Advice: Consult a criminal defense attorney near me right away. They can guide you through the process, ensure the FIR is correctly lodged, and help you understand your legal options.
Navigating Bail Procedures under BNSS
Criminal Breach of Trust is a cognisable offence, which means the police can arrest an accused person without a warrant. However, a person can seek bail under the Bharatiya Nagarik Suraksha Sanhita (BNSS), the new criminal procedure code.
- Anticipatory Bail: You can apply for this under Section 482 BNSS before an arrest is made. In cities like Delhi, the High Court handles such pleas, often with hearings within days. A lawyer can help you build a strong case showing you are not a flight risk.
- Regular Bail: If you have already been arrested, you can apply for bail to the magistrate or sessions court under Section 483 BNSS.
State-specific nuances are important. For instance, in Mumbai, the Bombay High Court often requires sureties worth a significant portion of the disputed amount, while the Karnataka High Court in Bangalore uses an e-filing system for faster processing. A local criminal defence lawyer will have the expertise to navigate these regional differences.
Expert Tips to Prevent Criminal Breach of Trust
Protect yourself and your assets by taking preventive measures. Leading criminal lawyers stress that proactive steps can save you from a lot of trouble.
- Conduct Thorough Background Checks: Before entrusting someone with significant property or funds, verify their trustworthiness through professional background checks. In Delhi and Mumbai, this is standard practice for businesses.
- Draft Clear Written Agreements: Always put the terms of trust in a clear, written agreement. This document should define the purpose of the property and its intended use, leaving no room for ambiguity.
- Maintain Detailed Records: Keep a thorough record of all transactions and dealings involving the entrusted property. Regular audits, especially in corporate settings in Bangalore and Kolkata, can help you detect any misappropriation early.
Commonly Asked Questions about Criminal Breach of Trust
Based on top user searches, here are answers to common queries:
1. What is the difference between cheating and criminal breach of trust?
Cheating involves a dishonest inducement from the start to make a person part with their property. In contrast, Criminal Breach of Trust happens after the property has already been entrusted. The recent 2025 Supreme Court rulings have further clarified this distinction.
2. Can a civil dispute turn into a criminal breach of trust case?
Yes, but courts are careful. While a civil dispute might involve the same property, a criminal charge for Criminal Breach of Trust is only valid if the dishonest intention can be proven. Without this, it remains a civil matter.
3. Is anticipatory bail an option for this offence?
Yes, it is. An accused person can apply for anticipatory bail under the BNSS. In places like Kolkata, courts may grant it, especially if there is a suspicion that the charge is a misuse of the legal process.
4. How much does a bail application cost?
The cost of an anticipatory bail application for Criminal Breach of Trust varies by state and the complexity of the case. For instance, in Mumbai, the legal fees and sureties could range from ₹50,000 to over ₹2 lakh. There is no fixed rate under the law.
Conclusion: Safeguarding Your Trust in India
Criminal Breach of Trust is a serious offence that can shake the foundations of personal and professional relationships. However, with the updated laws under the Bharatiya Nyaya Sanhita, 2023, and key clarifications from courts in 2025, victims and the accused now have a clearer legal path.
Whether you are a victim looking to file a complaint or someone facing an allegation, understanding the law is the first step. For expert legal guidance, consulting a criminal lawyer in India is crucial. Law Firm network connects you with the best criminal lawyer in Bangalore, a seasoned criminal defense advocate in Mumbai, or a top criminal defence lawyer in Kolkata. Don’t delay. Take the first step towards justice book a consultation today and safeguard what matters to you.
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