Law and You > Criminal Laws > Indian Penal Code > Counterfeiting of Coins (Ss. 230 to 254 IPC)
Counterfeiting of coins is indeed a global problem with significant economic and social implications. Counterfeiting undermines the integrity of national currencies, leading to economic losses for governments, businesses, and individuals. When counterfeit coins circulate alongside genuine currency, it can erode public trust in the monetary system, disrupt financial transactions, and distort economic indicators. Ss. 230 to 254 of the Indian Penal Code, 1860 deal with offences related to counterfeiting of Coin.
Coin Defined:
Section 230:
“Coin” Defined
Coin is metal used for the time being as money, and stamped and issued by the authority of some State or Sovereign Power in order to be so used.
Indian Coin:
Indian coin is metal stamped and issued by the authority of the Government of India in order to be used as money; and metal which has been so stamped and issued shall continue to be Indian coin for the purposes of this Chapter, notwithstanding that it may have ceased to be used as money.
What is Indian Coin under Section 230 IPC?
An Indian coin must be –
- Made out of metal;
- It must be used as currency/money;
- It must be stamped;
- It must be issued by the Government of India;
- It must be purported to be used as money;
- It must be currently used as money for the time being.
Illustrations:
- Cowries are not coin.
- Lumps of unstamped copper, though used as money, are not coin.
- Medals are not coin, inasmuch as they are not intended to be used as money.
- The coin denominated as the Company’ rupee is Indian coin.
- The “Farukhabad rupee”, which was formerly used as money under the authority of the Government of India, is Indian coin although it is no longer so used.
Counterfeiting Coin:
A counterfeit coin has not been defined anywhere in the Indian Penal Code. However, according to Section 28 of the British Forgery and Counterfeiting Act, 1981; a counterfeit coin means a coin without genuineness, but resembling or is apparently intended to resemble so as to get passed for a genuine or current coin, which has been –
- Gilt (a thin covering of gold), or
- Severed (to cut something into two pieces), or
- Washed, or
- Coloured or
- Cast Over, or
- Altered in any manner for resembling any current coin of higher denomination.
S. 231: Punishment for Counterfeiting Coin:
Whoever counterfeits or knowingly performs any part of the process of counterfeiting coin, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Explanations:
A person commits this offence who intending to practise deception, or knowing it to be likely that deception will thereby be practised, causes a genuine coin to appear like a different coin.
Ingredients of Section 231:
The accused
- Counterfeited Coin; or
- deliberately counterfeited the coin or participated in the counterfeiting process.
Punishment:
Imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Classification of Offence:
The offence under this section is cognizable, non-bailable, non-compoundable, and triable by a 1st Class Magistrate.
Section 232: Counterfeiting Indian coin
Whoever counterfeits, or knowingly performs any part of the process of counterfeiting Indian coin, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Ingredients of Section 232:
The accused
- Counterfeited Indian Coin; or
- The accused deliberately counterfeited the coin or participated in the counterfeiting process.
Punishment:
Imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine
Classification of Offence:
The offence under this section is cognizable, non-bailable, non-compoundable, and triable by Court of Session.
Section 233: Making or selling instrument for counterfeiting coin
Whoever makes or mends, or performs any part of the process of making or mending, or buys, sells or disposes of, any die or instrument, for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for the purpose of counterfeiting coin, shall be punished with imprisonment of either description for a term which may extended to three years, and shall also be liable to fine.
Ingredients of Section 233:
The accused
- made or mended, or performed any part of the process of making or mending, or
- bought, sold or disposesd of, any die or instrument, for the purpose of being used for the purpose of counterfeiting coin, or
- knew that it will be used for the purpose of counterfeiting coin
Punishment:
Imprisonment of either description for a term which may extended to three years, and shall also be liable to fine.
Classification of Offence:
The offence under this section is cognizable, non-bailable, non-compoundable, and triable by a 1st Class Magistrate.
Section 234: Making or selling instrument for counterfeiting Indian coin
Whoever makes or mends, or performs any part of the process of making or mending or buys, sells or disposes of, any die or instrument, for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for the purpose of counterfeiting Indian coin, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Ingredients of Section 234:
The accused
- made or mended, or performed any part of the process of making or mending Indian coin, or
- bought, sold or disposed of, any die or instrument, for the purpose of being used for the purpose of counterfeiting Indian coin, or
- knew that it will be used for the purpose of counterfeiting Indian coin
Punishment:
Imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Classification of Offence:
The offence under this section is cognizable, non-bailable, non-compoundable, and triable by Court of Session.
Section 235: Possession of instrument or material for the purpose of using the same for counterfeiting coin
Whoever is in possession of any instrument or material, for the purpose of using the same for counterfeiting coin, or knowing or having reason to believe that the same is intended to be used for that purpose, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine;
If Indian coin – and if the coin to be counterfeited is Indian coin, shall be punished with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Ingredients of Section 235:
The accused
- is in possession of any instrument or material, for the purpose of using the same for counterfeiting coin, or
- The accused knew or had reason to believe that the same is intended to be used for that purpose
Punishment:
- For Any Other Coin: Imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
- For Indian Coin: Imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Classification of Offence:
The offence under this section is cognizable, non-bailable, non-compoundable. For any other coin triable by First Class Magistrate and for Indian coin triable by Court of Session.
In Kashi Prasad vs. State of Uttar Pradesh, AIR 1967 ALL 173 case; the Court held that mere possession of any instrument or material for counterfeiting is sufficient to hold the accused guilty. Moreover, the accused need not have ownership of the premises from where the materials are found.
In State of Uttar Pradesh v. Lal Chand, 1965 LawSuit (All) 387 case, the Court held that instruments and materials capable of counterfeiting coins shall be deemed as instruments or materials used for the purpose of counterfeiting coins.
Section 236 IPC:
Abetting in India the Counterfeiting Out of India of Coin:
Whoever, being within India, abets the counterfeiting of coin out of India, shall be punished in the same manner as if he abetted the counterfeiting of such coin within India.
Section 237 IPC:
Import or Export of Counterfeit Coin:
Whoever imports into India, or exports therefrom, any counterfeit coin, knowing or having reason to believe that the same is counterfeit, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Section 238 IPC:
Import or Export of Counterfeits of the Indian Coin:
Whoever imports into India, or exports therefrom, any counterfeit coin, which he knows or has reason to believe to be a counterfeit of Indian coin, shall be punished with Imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Section 239 IPC:
Delivery of Coin, Possessed with Knowledge that it is Counterfeit:
Whoever, having any counterfeit coin, which at the time when he became possessed of it, he knew to be counterfeit, fraudulently or with intent that fraud may be committed, delivers the same to any person, or attempts to induce any person to receive it, shall be punished with imprisonment of either description for a term which may extend to five years, and shall also be liable to fine.
Section 240 IPC:
Delivery of Indian Coin, Possessed with Knowledge that it is Counterfeit:
Whoever, having any counterfeit coin, which is a counterfeit of Indian coin, and which, at the time when he became possessed of it, he knew to be a counterfeit of Indian coin, fraudulently or with intent that fraud may be committed, delivers the same to any person, or attempts to induce any person to receive it, shall be punished with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Section 241 IPC:
Delivery of Coin as Genuine, which, when First Possessed, the Deliverer did not Know to be Counterfeit:
Whoever delivers to any other person as genuine, or attempts to induce any other person to receive as genuine, any counterfeit coin which he knows to be counterfeit, but which he did not know to be counterfeit at the time when he took it into his possession, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine to an amount which may extend to ten times the value of the coin counterfeited, or with both.
Illustration:
A, a coiner, delivers counterfeit Company’s rupees to his accomplice B, for the purpose of uttering them. B sells the rupees to C, another utterer, who buys them knowing them to be counterfeit. C pays away the rupees for goods to D, who receives them, not knowing them to be counterfeit. D, after receiving the rupees, discovers that they are counterfeit and pays them away as if they were good. Here D is punishable only under this section, but B and C are punishable under section 239 or 240, as the case may be.
Section 242 IPC:
Possession of Counterfeit Coin by Person who knew it to be Counterfeit when he Became Possessed Thereof:
Whoever, fraudulently or with intent that fraud may be committed, is in possession of counterfeit coin, having known at the time when he became possessed thereof that such coin was counterfeit, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Section 243 IPC:
Possession of Indian Coin by Person who Knew it to be Counterfeit when he Became Possessed thereof:
Whoever, fraudulently or with intent that fraud may be committed, is in possession of counterfeit coin, which is a counterfeit of 1 [Indian coin], having known at the time when he became possessed of it that it was counterfeit, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Section 244 IPC:
Person Employed in Mint Causing Coin to be of Different Weight or Composition from that Fixed by Law:
Whoever, being employed in any mint lawfully established in 2 [India], does any act, or omits what he is legally bound to do, with the intention of causing any coin issued from that mint to be of a different weight or composition from the weight or composition fixed by law shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Section 245 IPC:
Unlawfully Taking Coining Instrument from Mint:
Whoever, without lawful authority, takes out of any mint, lawfully established in India, any coining tool or instrument, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Section 246 IPC:
Fraudulently or Dishonestly Diminishing Weight or Altering Composition of Coin:
Whoever fraudulently or dishonestly performs on any coin any operation which diminishes the weight or alters the composition of that coin, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Explanation:
A person who scoops out part of the coin and puts anything else into the cavity alters the composition of that coin.
Section 247 IPC:
Fraudulently or Dishonestly Diminishing Weight or Altering Composition of Indian Coin:
Whoever fraudulently or dishonestly performs on any Indian coin any operation which diminishes the weight or alters the composition of that coin, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Section 248 IPC:
Altering Appearance of Coin with Intent that it shall Pass as Coin of Different Description:
Whoever performs on any coin any operation which alters the appearance of that coin, with the intention that the said coin shall pass as a coin of a different description, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Section 249 IPC:
Altering Appearance of Indian Coin with Intent that it shall Pass as Coin of Different Description:
Whoever performs on any Indian coin any operation which alters the appearance of that coin, with the intention that the said coin shall pass as a coin of a different description, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.
Section 250 IPC:
Delivery of Coin, Possessed with Knowledge that it is Altered:
Whoever, having coin in his possession with respect to which the offence defined in section 246 or 248 has been committed, and having known at the time when he became possessed of such coin that such offence had been committed with respect to it, fraudulently or with intent that fraud may be committed, delivers such coin to any other person, or attempts to induce any other person to receive the same, shall be punished with imprisonment of either description for a term which may extend to five years, and shall also be liable to fine.
Section 251 IPC:
Delivery of Indian Coin, Possessed with Knowledge that it is Altered:
Whoever, having coin in his possession with respect to which the offence defined in section 247 or 249 has been committed, and having known at the time when he became possessed of such coin that such offence had been committed with respect to it, fraudulently or with intent that fraud may be committed, delivers such coin to any other person, or attempts to induce any other person to receive the same, shall be punished with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
Section 252 IPC:
Possession of Coin by Person who Knew it to be Altered when he Became Possessed Thereof:
Whoever, fraudulently or with intent that fraud may be committed, is in possession of coin with respect to which the offence defined in either of the section 246 or 248 has been committed, having known at the time of becoming possessed thereof that such offence had been committed with respect to such coin, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Section 253 IPC:
Possession of Indian Coin by Person who Knew it to be Altered when he Became Possessed Thereof:
Whoever, fraudulently or with intent that fraud may be committed, is in possession of coin with respect to which the offence defined in either of the section 247 or 249 has been committed having known at the time of becoming possessed thereof, that such offence had been committed with respect to such coin, shall be punished with imprisonment of either description for a term which may extend to five years, and shall also be liable to fine.
Section 254 IPC:
Delivery of Coin as Genuine, which, when First Possessed, the Deliverer did not Know to be Altered:
Whoever delivers to any other person as genuine or as a coin of a different description from what it is, or attempts to induce any person to receive as genuine, or as a different coin from what it is, any coin in respect of which he knows that any such operation as that mentioned in section 246, 247, 248 or 249 has been performed, but in respect of which he did not, at the time when he took it into his possession, know that such operation had been performed, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine to an amount which may extend to ten times the value of the coin for which the altered coin is passed, or attempted to be passed.
Conclusion:
Counterfeiting of coins undermines the integrity of national currencies, leading to economic losses for governments, businesses, and individuals. When counterfeit coins circulate alongside genuine currency, it can erode public trust in the monetary system, disrupt financial transactions, and distort economic indicators. Governments lose revenue due to counterfeiting through reduced seigniorage (the profit made by governments by issuing currency), increased costs associated with counterfeit detection and enforcement, and the loss of tax revenue from transactions involving counterfeit coins. Counterfeit coins can harm businesses by devaluing legitimate currency, increasing the risk of fraud in commercial transactions, and undermining consumer confidence. Businesses may incur losses if they unknowingly accept counterfeit coins as payment. Counterfeiting undermines consumer confidence in the currency and can lead to increased skepticism and reluctance to use cash for transactions. This may encourage the adoption of alternative payment methods, such as electronic or digital payments, which could have implications for financial inclusion and privacy. Counterfeiting of coins can affect international trade and commerce by disrupting cross-border transactions, undermining the stability of exchange rates, and creating uncertainty in financial markets. Counterfeit coins may also enter circulation in other countries, leading to diplomatic tensions and trade disputes.
Counterfeiting of coins is often associated with organized criminal networks engaged in various illicit activities, including money laundering, drug trafficking, and terrorism financing. The proceeds from counterfeiting may fund other criminal enterprises, posing security risks and challenges for law enforcement agencies. Advances in technology have made counterfeiting increasingly sophisticated, with counterfeiters using high-resolution printing, digital imaging, and other techniques to produce convincing counterfeit coins. This requires governments and central banks to continuously invest in advanced security features and counterfeit detection methods to stay ahead of counterfeiters.
Addressing the problem of counterfeiting of coins requires international cooperation and coordination among governments, law enforcement agencies, central banks, financial institutions, and other stakeholders. This includes sharing intelligence, implementing effective anti-counterfeiting measures, and strengthening legal frameworks to combat counterfeiting across borders. In conclusion, counterfeiting of coins is a multifaceted global problem that poses significant challenges to economies, businesses, consumers, and law enforcement agencies worldwide. Efforts to combat counterfeiting require a comprehensive and coordinated approach at the national, regional, and international levels to safeguard the integrity of currencies and maintain public trust in the financial system.