Understanding Check Forgery: Legal Definitions and Consequences

Forgery of checks is a serious offense involving the fraudulent alteration or creation of a check to deceive others and illegally obtain funds. This crime not only harms individuals and businesses but also undermines trust in the banking system. In India, forgery is punishable under various sections of the Indian Penal Code (IPC) and specific banking laws.

Legal Provisions for Check Forgery: 

1. Section 335 BNS: Defines forgery as creating a false document or altering an existing one with intent to deceive.

   • Punishment: The offender can face imprisonment or fines based on the severity of the crime.

2. Section 336(3) BNS: Specifically addresses forgery committed for the purpose of cheating.

   • Punishment: Imprisonment for up to 7 years, along with fines.

3. Section 340(2) BNS: Covers the use of a forged document, including checks, knowing it is forged.

   • Punishment: The person can be imprisoned for up to 7 years and may also be fined.

4. Negotiable Instruments Act, 1881: If the forgery involves dishonoring a check, civil and criminal liabilities can arise under this act, particularly under Section 138, which deals with bounced checks.

Legal Remedies for Check Forgery:

1. Filing a Police Complaint (FIR): Victims of check forgery can lodge an FIR with the police to initiate criminal proceedings against the offender.

2. Civil Lawsuit: Victims can file a civil lawsuit for compensation to recover the stolen funds or losses incurred due to the forged check.

3. Bank Remedies: Victims should immediately notify their bank to freeze the account, stop payments, and investigate the fraudulent check. The bank may initiate its own internal investigation and may assist in recovering funds.

4. Damages for Fraud: In cases where substantial financial loss occurs due to check forgery, victims may pursue claims for damages through a civil court to recover the lost amount and any additional financial hardships.

Police Procedure for Check Forgery

1. Filing an FIR: The victim must first file an FIR with the local police station detailing the forgery, including copies of the forged check and any supporting evidence (such as communication with the bank).

2. Investigation: The police will initiate an investigation, which may involve collecting evidence from the bank, examining CCTV footage (if available), and tracking the transactions associated with the forged check.

3. Forensic Analysis: In many cases, the police will send the forged check for forensic examination to verify the authenticity of signatures and handwriting.

4. Arrest and Prosecution: Once sufficient evidence is gathered, the police may arrest the accused and file charges under relevant IPC sections. The case will then proceed through the judicial system, where the accused will be tried in court.

Preventive Measures

• Safeguarding Checkbooks: Ensure your checkbooks are kept securely to avoid falling into the wrong hands.

• Immediate Reporting: If you notice any suspicious transactions or unauthorized checks, notify the bank immediately.

• Digital Banking: Opt for digital banking options to minimize the risk of physical check forgery.