BNS Section 340 - Fraudulent Subsidy or Grant Claims

Whoever obtains, attempts to obtain, or facilitates obtaining government subsidies, incentives, grants, or refunds by means of false statements, forged documents, or suppression of material facts.

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Non-bailable, Cognizable

Official Text

Obtaining any subsidy, incentive, refund, or grant by furnishing false information, forged documents, or by suppression of material particulars.

Legal Analysis

Elements to Prove:

  • Claim for subsidy/incentive/refund/grant.
  • False documents or suppression.
  • Intent to obtain undue benefit.

Potential Defenses:

  • Eligibility with truthful disclosure.
  • No intent to mislead.
  • Clerical error promptly corrected.

Practical Examples

What Constitutes the Offense:

Fake export incentives, bogus MSME subsidies, refund claims with fabricated invoices.

What Doesn't Constitute:

Eligible claims with full disclosure, rectified computational mistakes, lawfully availed incentives.

Punishment

Imprisonment up to 7 years, and Fine