Section 316 of the Bharatiya Nyaya Sanhita (BNS) applies when a person entrusted with property or given control over it dishonestly misappropriates, converts it for personal use, or violates legal directions regarding its handling.
This includes cases where a person fails to fulfill their responsibility of managing or returning property as per legal or contractual obligations.
Punishment:
Whoever commits a criminal breach of trust shall be punished with imprisonment of up to five years, or a fine, or both.
If the offense is committed by a carrier, warehouse-keeper, clerk, or servant, the punishment extends to seven years and a fine.
If the offender is a public servant, banker, merchant, broker, attorney, or agent, the punishment extends to imprisonment for life or up to ten years, along with a fine.
How It Protects:
This section protects property owners, employers, and financial institutions by ensuring that entrusted individuals do not misuse assets for personal gain.
It provides legal accountability for breaches of trust, ensuring justice for victims of financial fraud.
Example:
If an employer deducts employees’ provident fund contributions but fails to deposit them in the fund, it constitutes a criminal breach of trust.
Similarly, a warehouse-keeper who sells goods stored under his protection without authorization is guilty under this section.
