Any dispute, including serious criminal matters, can be legally settled with a private payment if both sides agree.

Only offences the law specifically classifies as compoundable can be lawfully settled this way; offering a bribe to bury a non-compoundable offence is itself a crime.

Bharatiya Nyaya Sanhita, 2023

Section 251

Offering gift or restoration of property in consideration of screening offender

Whoever gives or causes, or offers or agrees to give or cause, any gratification to any person, or restores or causes the restoration of any property to any person, in consideration of that person’s concealing an offence, or of his screening any person from legal punishment for any offence, or of his not proceeding against any person for the purpose of bringing him to legal punishment shall,—§

(a) if the offence is punishable with death, be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine;§

(b) if the offence is punishable with imprisonment for life or with imprisonment which may extend to ten years, be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine;§

(c) if the offence is punishable with imprisonment not extending to ten years, be punished with imprisonment of the description provided for the offence for a term which may extend to one-fourth part of the longest term of imprisonment provided for the offence, or with fine, or with both. Exception.—The provisions of this section and section 250 do not extend to any case in which the offence may lawfully be compounded.§

Why this exists

This is the paying side of the offence in Section 250 - it punishes the person offering the bribe to bury a crime, not just the person accepting it. Earlier Section 214 of the Indian Penal Code, 1860, the built-in exception for lawfully compoundable offences ensures the law does not accidentally criminalize legitimate, legally sanctioned settlements between parties for offences the law itself allows to be compromised.

Common misconceptions

Myth: Any dispute, including serious criminal matters, can be legally settled with a private payment if both sides agree.
Fact: Only offences the law specifically classifies as compoundable can be lawfully settled this way; offering a bribe to bury a non-compoundable offence is itself a crime.