Where there is delivery or destruction of any property or alteration or destruction of any valuable security resulting from the act of the person deceiving, then this section comes into force. It must be proved that the complainant parted with his property acting on a representation, which was false to the knowledge of the accused, and the accused, had an dishonest intention from the outset.
Under this section property does not necessarily mean having money value or market value. Even if the thing has no money value in the hands of the person cheated, but becomes a thing of value in the hand of person who may get possession of it, as a result of the cheating practiced by him, then also it would fall under the meaning of the term 'property'.
Whoever cheats and dishonestly induces the delivery of property shall be punished with an imprisonment, which may extend to seven years, and shall also be liable to fine.