A breach of a land or money agreement is not, by itself, cheating. Cheating requires a dishonest intention at the very start of the transaction. On 5 October 2026, in Sudha Rakesh v. State of Karnataka (2026 INSC 1086), the Supreme Court quashed a cheating case arising from a land sale and observed that the tendency of litigants to dress up civil disputes as criminal offences is an open secret, which courts are firmly discouraging.
In a fast-growing district like Pune, with land transactions in Hinjewadi, Wagholi, Mulshi and the PMRDA belt, failed deals are routine. A buyer who has paid an advance and not received a sale deed, or a seller who has not received the balance, often goes to the police first. The FIR feels faster than a civil suit. This judgment is the latest in a long line saying that this shortcut is not what criminal law is for.
The test courts apply
Cheating, now Section 318 BNS (formerly Section 420 IPC), needs deception and a dishonest or fraudulent intention existing when the promise was made. If the intention was honest at the start and the deal later failed — because of a title problem, a family objection, a market change or a money shortage — that is a breach of contract, to be dealt with by a civil court.
| Usually civil | May be criminal |
|---|---|
| Seller later refuses to execute the sale deed | Seller sold land he knew he did not own |
| Buyer pays part and defaults on the balance | Same plot sold to several buyers at once |
| Dispute over area, boundaries or price | Forged 7/12 extracts, power of attorney or sale deeds |
| Delay in possession or registration | Advance taken with no intention ever to complete |
If you are the buyer or seller who has lost money
- Collect the agreement, payment proofs, the 7/12 extract and mutation entries, and all messages with the other side.
- Send a legal notice setting out the breach and the remedy you want.
- Consider a suit for specific performance or refund, with an application for injunction to stop the land being sold to someone else.
- Go to the police only where there is genuine evidence of deceit from the start — forgery, sale of land not owned, or multiple sales.
- Mind limitation: a suit for specific performance generally has to be filed within three years.
If an FIR has been filed against you
- Seek anticipatory bail at the Sessions Court, Pune if non-bailable sections are invoked.
- Assemble documents showing the deal was genuine at the start — title documents, partial performance, correspondence.
- A petition to quash under Section 528 BNSS before the Bombay High Court is the remedy where the FIR, read as it stands, discloses only a civil dispute.
The bottom line
Courts are drawing a firm line between deals that fail and deals that were fraudulent from day one. Choose the remedy that fits the facts. It is usually the faster route to getting your money or your land back.