Extortion and Criminal Breach of Trust Under BNS in Odisha
Extortion (putting someone in fear to extract money or property) and criminal breach of trust (misusing property entrusted to you) were IPC Sections 384 and 405 respectively, now under BNS. Here is how these offences work in Odisha.
By Advocate Debarchana Samal · 23 July 2026 · 9 min read
In short: extortion, previously Section 384 IPC, is now Section 308 BNS, and criminal breach of trust, previously Section 406 IPC, is now Section 316 BNS. Extortion involves putting someone in fear to make them hand over money or property; criminal breach of trust involves someone who was legitimately entrusted with property dishonestly misusing it. Both are common in Odisha's business and family disputes, and both require careful, fast evidence-gathering — whether you are the victim trying to recover your money or someone facing an accusation you believe is unfair.
These two offences show up constantly in the business and family disputes I see in Cuttack — a business partner quietly diverting company funds, an employee manipulating accounts over months or years, or someone using threats of exposure or harm to extract money from a person or family. The emotional and financial toll of discovering that someone you trusted has misused your money is significant, and knowing exactly what the law requires — and what evidence actually proves it — is the first step toward getting your money back and holding the wrongdoer accountable.
Extortion vs Simple Threat — Where the Line Is Drawn
Criminal Intimidation (Threat Alone)
A threat is made to cause alarm, but no property or money is actually delivered by the victim as a result of the threat.
Prosecuted under criminal intimidation provisions.
Extortion (Section 308 BNS)
The victim, placed in fear of injury to themselves or someone they care about, is actually induced to deliver money, property, or a valuable security to the accused.
Punishable with imprisonment up to 7 years and fine; aggravated forms (fear of death or grievous hurt) carry higher punishment.
Ingredients of Criminal Breach of Trust
Common Scenarios in Odisha
A recurring pattern involves a business partner who has access to the firm's bank account or cash collections routing funds into a personal or shell account over an extended period, discovered only when the business runs into a cash crunch. Another common pattern is an employee, accountant, or society treasurer who manipulates books, forges vouchers, or simply diverts collected money bit by bit. On the extortion side, disputes sometimes involve one party threatening to expose real or fabricated information — about a relationship, a transaction, or a family matter — unless money is paid, which squarely falls within the definition of extortion once payment is actually extracted through fear.
Step-by-Step: What to Do
Document the demand or misappropriation in detail
Preserve messages, call recordings, bank statements, invoices, or accounting records that show the extortion demand or the misuse of entrusted property or funds.
File a police complaint with supporting documents
Extortion and criminal breach of trust are cognisable in many circumstances — a well-drafted complaint backed by clear documentary evidence carries far more weight with investigators.
Get a forensic audit for business fund disputes
In embezzlement, partnership fund misuse, or society fund misappropriation cases, a forensic accountant's report tracing the money trail is often the single most persuasive piece of evidence.
File a parallel civil recovery suit
A civil suit for recovery of money, accounts, or damages before the appropriate court is usually necessary to actually get your money back, alongside the criminal complaint.
If accused, get legal advice before responding
Whether you are accused of extortion or breach of trust, do not respond to the complainant or make any statement to police without your lawyer's guidance — the framing of your response matters greatly.
Critical warning: Do not pay an extortion demand or attempt to negotiate directly with the person threatening you — this can be seen as compliance and complicates both the criminal complaint and your own safety. Involve the police and a lawyer immediately instead.
When You Need a Lawyer
You need a criminal lawyer without delay if you are being extorted or threatened for money in Odisha, if you have discovered that a business partner, employee, or trusted individual has misappropriated funds entrusted to them, or if you have been accused of extortion or breach of trust yourself and need to protect your rights and reputation. These cases combine criminal complaint strategy with civil recovery options, and the earlier you engage a lawyer, the better your chances of both holding the wrongdoer accountable and actually recovering what is owed to you.
Frequently Asked Questions
What were IPC Sections 384 and 405 are now which BNS sections?
Extortion, defined under Section 383 IPC and punished under Section 384 IPC, is now covered under Section 308 of the Bharatiya Nyaya Sanhita (BNS). Criminal breach of trust, defined under Section 405 IPC and punished under Section 406 IPC, is now covered under Section 316 BNS. Both definitions are carried over substantially unchanged, though the BNS restructures some punishment provisions, including specific enhanced punishment for breach of trust by public servants, bankers, and persons in a fiduciary or business capacity.
What is the difference between extortion and a simple threat?
A simple threat, or criminal intimidation, only requires intent to cause alarm — no property needs to actually change hands. Extortion goes a step further: the victim, put in fear of injury to themselves or someone dear to them, must actually be induced to deliver property, money, or a valuable security to the accused. If money or property is actually handed over because of the fear created, it is extortion; if only the threat is made without any delivery of property, it is more likely to be prosecuted as criminal intimidation alone.
What are the ingredients of criminal breach of trust?
Criminal breach of trust requires two elements: first, that property was entrusted to the accused, or the accused had dominion over it, in a fiduciary, employment, partnership, or similar capacity; and second, that the accused dishonestly misappropriated, converted to their own use, or disposed of that property in violation of the terms of the entrustment. Both elements must be proved — merely losing money in a bad business decision is not criminal breach of trust unless there is dishonest intent involved in how the property was used.
How common are extortion and breach of trust cases in Odisha business disputes?
Very common. Typical scenarios include a business partner routing company funds into a personal account or a shell entity, an employee or accountant siphoning off cash or manipulating books over time, a landlord or society treasurer misusing collected funds, or a person demanding money under threat of exposing (often fabricated) information to extort payment. These disputes often begin as what looks like a purely commercial disagreement, but once dishonest intent and entrustment can be shown, they cross into criminal breach of trust or extortion.
Can I recover my money through a civil suit alongside the criminal case?
Yes, and in most business fund misappropriation cases this is essential. A criminal conviction can result in the accused being punished, but it does not automatically hand your money back to you. A civil recovery suit, or in appropriate cases a suit for accounts and damages, filed before the civil court in Cuttack or the relevant district, is usually necessary to actually recover the misappropriated amount, and can proceed alongside the criminal complaint.
Facing an Extortion or Breach of Trust Case in Cuttack or Odisha?
Advocate Debarchana Samal handles extortion, embezzlement, and criminal breach of trust matters, including business and partnership fund disputes, before Odisha's courts. Contact us for a confidential consultation.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. Consult a qualified advocate for advice specific to your situation.
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