Mr. Raj owned 50 acres of land. He agreed to sell the land to Mr. Sham for ₹ 5 crore and executed a conveyance for the same. Despite the execution of conveyance, Mr. Raj later mortgages the entire 50 acres to Mr. Rohit.

Section 415 Indian Penal Code, 1860, provides that whoever, by deceiving any person, fraudulently or dishonestly induces the person so deceived to deliver any property to any person, or to consent that any person shall retain any property, or intentionally induces the person so deceived to do or omit to do anything which he would not do or omit if he were not so deceived, and which act or omission causes or is likely to cause damage or harm to that person in body, mind, reputation or property, is said to "cheat". In Chinthaman vs. Dyaneshwar and Anr. [1973] case, the accused sold the property to the complainant. In fact, they said property was already mortgaged to some other person. The accused concealed the mortgage and registered it in favour of the complainant and received full consideration. The High Court held that it was a clear cheating offence. Yes, in the given case, Mr. Raj would be liable for offence of cheating as he dishonestly mortgaged the land to Mr. Rohit.