This article has been written by Arkadyuti Sarkar, a student of B.A. LL.B from the Shyambazar Law College, under the University of Calcutta. This article provides a comprehensive and exhaustive explanation of offences relating to coin and Government Stamps.

Introduction

Counterfeiting of currencies and Government seals, in recent times, has emerged as a global phenomenon. The problem has a severe degree in booming economies, especially the ones like India. Since India shares its boundaries with 7 neighbouring countries, it turns vulnerable to counterfeiting actions. This, in turn, hinders India’s economic growth. Thus, the law of the land provides a broad range of remedies against counterfeiting under various statutory enactments, however, it does not provide a specific enactment on Counterfeiting.

The Indian Penal Code has up to 35 sections under Chapter XII, which deals with offences relating to counterfeiting, debasing or alteration of coins, trafficking in counterfeiting and spurious coins, and Government stamps.

Coin

According to Section 230 of the Indian Penal Code, coin means the metal which is being used for the time being as currency, and which is stamped and issued by the sovereign authority in the State.

Indian coin means a metal stamped and issued, under the authority of the Government of India for being used as money, and also shall be deemed an Indian coin even after it ceases to be used as money.

Therefore, an Indian coin must be –

1. Made out of metal;
2. It must be used as currency/money;
3. It must be stamped;
4. It must be issued by the Government of India;
5. It must be purported to be used as money;
6. It must be currently used as money for the time being.

Illustrations-

1. Cowries are not coins;
2. Lumps of unstamped copper, although used as money, are not coins;
3. Medals are not coins since they are not intended for being used as money;
4. The coin denominated as the Company’s Rupee is Indian coin;
5. The Farukhabad Rupee used formerly as money under the authority of the Indian Government is Indian coin, although it is not used anymore.

Offences relating to coins and Government Stamps

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, or
• Severed, or
• Washed, or
• Colored or cast over, or
• Altered in any manner for resembling any current coin of higher denomination.

According to Section 231, anyone counterfeiting or knowingly participating in the counterfeiting process, shall be punishable with either rigorous or simple imprisonment extending up to 7 years accompanied by fine.

A person intending to practice deception or knowing that it will cause deception, if he causes a genuine coin to resemble a different coin, then he shall be deemed to commit the offence of counterfeiting of coins.

The offence under this section is cognizable, non-bailable, non-compoundable, and triable by a 1st Class Magistrate.

Counterfeiting Indian coin

According to Section 232 of the Indian Penal Code, anybody in relation to the Indian coin-

• Counterfeits; or
• Participates in any part of the counterfeiting process;

Shall be punishable life imprisonment or for a term extending up to 10 years accompanied by fine.

Thus following are the ingredients under this section:

1. Counterfeiting of Indian Coin;
2. The accused deliberately counterfeited the coin or participated in the counterfeiting process.

Making or selling instrument for counterfeiting coin

According to Section 233 of the IPC; punishes anyone who is involved in-

• Making or mending or performing any process related to making or mending; or
• Buying or selling or disposing of any die or instrument;

for the purpose of counterfeiting coin, shall be punishable with either rigorous or simple imprisonment extending up to 3 years accompanied by fine. 

Making or selling instrument for counterfeiting Indian coin

According to Section 234; whoever-

• Makes or mends or participates in making or mending; or
• Buys, or sell, or  disposes of any die or instrument;

for the purpose of counterfeiting Indian coin, shall be punishable with either rigorous or simple imprisonment extending up to 7 years accompanied by fine.

This offence is cognizable, non-bailable, non-compoundable, and triable by the Sessions court.

Possession of instrument or material for the purpose of using the same for counterfeiting coin: if Indian coin

According to Section 235; if anyone is in possession of any instrument or material, either purporting to counterfeit coin or being aware that such instrument or material shall be used for counterfeiting coin, shall be liable for being punished with either rigorous or simple imprisonment extending up to 3 years accompanied by fine.

In case the coin to be counterfeited is Indian coin, then the counterfeiter shall be punishable with rigorous punishment extending up to 10 years accompanied by a fine.

In Kashi Prasad vs. State of Uttar Pradesh; 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 Lal Chand; 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.  

Abetting in India the counterfeiting out of India of a coin

According to Section 236; any person who while residing within the Indian territory abets the counterfeiting of coins outside the Indian territory shall be punishable in the same manner if such counterfeit was committed in India.

Thus, this section has the following ingredients –

1. The accused abetted the counterfeiting of the coin ;
2. Such counterfeiting occurred outside India;
3. The accused was within the Indian territory during such counterfeit.

Import or export of counterfeit coin

According to Section 237; anybody importing or exporting any counterfeit coin with the knowledge of such counterfeit shall be punishable with either rigorous or simple imprisonment extending up to 3 years accompanied by fine.

The following are the ingredients for punishment under this provision :

1. Importation or exportation of counterfeit coins from or into India by the accused.
2. The accused was aware of such counterfeit.   

Import or export of counterfeits of the Indian coin

According to Section 238; anybody importing or exporting counterfeiting Indian coins from or outside India or has reason to believe that such Indian coin is counterfeited, shall be liable for punishment with imprisonment extending up to 10 years accompanied by a fine. 

Delivery of coin possessed with knowledge that it is counterfeit

Section 239 of the Indian Penal Code deals with the offence of delivering counterfeit coins while being acknowledged of such counterfeit and punishes with either rigorous or simple imprisonment extending up to 5 years along with fine.

The ingredients of this section are as follows:

1. The coin in question is counterfeit and was in possession of the accused;
2. The accused was acknowledged about such counterfeit;
3. The accused delivered such a coin to another or attempted to induce the receiver in receiving it, and that such delivery was done with fraudulent intention.

The offence is cognizable, non-compoundable, and triable by a 1st Class Magistrate. 

Delivery of Indian coin possessed with knowledge that it is counterfeit

According to Section 240 of the Indian Penal Code; anyone having a counterfeit Indian coin, and at the time of possessing such counterfeit coin he was aware of the counterfeit and delivers such coin to any person with fraudulent intent, then the former shall be punishable with either rigorous or simple imprisonment up to 10 years accompanied by fine.

Delivery of coin as genuine, which, when first possessed, the deliverer did not know to be counterfeit

According to Section 241; whoever delivers any counterfeit coin to another as genuine while being aware of such counterfeit, however, was unaware of the counterfeit when the coin first came into his possession, shall be punishable with imprisonment, either rigorous or simple, accompanied by a fine extending up to 10 times the value of the counterfeit coin.

Ingredients:

1. The accused was unaware of the counterfeit during the delivery;
2. The accused possessed the coin;
3. The accused was unaware of the counterfeit when he received the coin but afterwards came to know of it;   

Illustration: A, a coiner, delivers counterfeit Company’s coin to his accomplice B for uttering them. B sells them to C, another utterer, who buys them while being acknowledged of the counterfeit. C makes payment to D by using those coins. D after receiving them notices the counterfeit and pays them away while behaving as if they are genuine. Here D is punishable under this section but B and C are punishable under section 239 & 240, as the case may be.

Possession of counterfeit coin by person who knew it to be counterfeit when he became possessed thereof

According to Section 242; anyone with fraudulent intent having possession of counterfeit coins, and was aware of the counterfeit at the time of receiving the coins, shall be punishable with either rigorous or simple imprisonment extending up to 3 years accompanied by fine.

Ingredients:

1. That the coin was a counterfeit coin;
2. The accused possessed the counterfeit coin with fraudulent intent;
3. That he was aware of the counterfeit while receiving the coin.

The offence is cognizable, non-bailable, non-compoundable, and triable by a 1st class Magistrate.

Possession of Indian coin by person who knew it to be counterfeit when he became possessed thereof

According to Section 243; anyone with fraudulent intent having possession of counterfeit Indian coins, and was aware of the counterfeit at the time of receiving the coins, shall be punishable with either rigorous or simple imprisonment extending up to 7 years accompanied by fine.

Ingredients:

1. The accused possessed counterfeited Indian coins;
2. The accused kept such coins in possession with fraudulent intent;
3. The accused was aware of the counterfeit from the very time they came into his possession.

Employees in mint causing the coin to be of different weight or composition from that fixed by law

According to Section 244; if any employer of any legally established mint in India commits or omits from doing any act of legal liability, with the intent of causing any coin issued from the mint to be of different weight or composition from the ones fixed by law, shall be liable for being punished with imprisonment extending up to 7 years accompanied by fine.

According to Raghavan on the Law of Crimes, this section is directed towards punishing mint employees involved in pilfering bullion used at the mint for coinage of money.

Ingredients:

1. That the accused was a mint employer;
2. That the establishment of such mint was lawful in India;
3. That the accused committed some illegal act or omitted from performing any legally binding act;
4. That such act or omission was deliberately carried out to alter the weight or composition of any coin issued from the mint so as to differ from the legally fixed standard. 

                  

Unlawfully taking of coining instrument from the mint

According to Section 245; anyone in exclusion of lawful authority takes out any coining instrument or tool from any lawfully established mint in India, shall be punishable with either rigorous or simple imprisonment extending till 7 years and shall also be fined.

Ingredients:

1. There is taking out of coining instruments and tools from a lawfully established mint in India, by the accused;
2. The accused was legally unauthorized from doing such an act.

The offence is cognizable, non-bailable, non-compoundable, and triable by a 1st class Magistrate.

Fraudulently or dishonestly diminishing weight or altering the composition of the coin

According to Section 246; if anybody with dishonest or fraudulent intent performs any operation on a coin, causing the diminishing of its weight or alteration of the composition, shall be punishable with either rigorous or simple imprisonment for up to 3 years and shall also be fined.

Ingredients:

1. The accused performed an operation on a coin;
2. Such an operation was executed in a fraudulent manner;
3. Such an operation diminished the coin’s weight or altered its composition. 

Fraudulently or dishonestly diminishing weight or altering the composition of Indian coin

According to Section 247; anybody with dishonest or fraudulent intent performs any operation on an Indian coin, causing the diminishing in its weight or alteration of the composition, shall be punishable with either rigorous or simple imprisonment for up to 7 years and shall also be fined.

Ingredients:

1. The accused performed an operation on an Indian coin;
2. Such an operation was executed in a fraudulent manner;
3. Such an operation diminished the coin’s weight or altered its composition.

The offence is cognizable, non-bailable, non-compoundable, and triable by a 1st class Magistrate.

Altering appearance of coin with intent that it shall pass as coin of a different description

According to Section 248; anyone performing any operation on any coin so as to alter the appearance, intending to pass such coin with different description, shall be punished with either rigorous or simple imprisonment extending at a maximum of 3 years along with fine.

Ingredients:

1. The accused performed an operation on the coin to alter its appearance; and
2. The intention behind such alteration was for passing the coin as one with a different description.

Altering the appearance of Indian coin with intent that it shall pass as coin of a different description

According to Section 249; anyone performing any operation on any Indian coin so as to alter the appearance, intending to pass such coin with a different description, shall be punished with either rigorous or simple imprisonment extending at a maximum of 7 years along with fine.

Ingredients:

1. The accused performed an operation on any Indian coin to alter its appearance; and
2. The intention behind such alteration was for passing the coin as one with a different description.

Delivery of coin possessed with knowledge that it is altered

According to Section 250; anyone possessing any coin in respect of which any offence under Section 246 or 248 has been committed, and he was aware of the commission of such offence under these prescribed sections, with such possession being coupled with fraudulent intent, delivers such coin to another person or attempts inducing another person to receive such coin, shall be punishable with rigorous or simple imprisonment for 7 years at a maximum along with fine.

Ingredients:

1. The accused possessed any coin with respect to which the offences mentioned under Sections 246 & 248 has been committed;
2. The accused was aware in relation to the commission of the offences;
3. Such possession was done with the fraudulent intent of delivering the coin or inducing the receiver to receive it.

The offence is cognizable, non-bailable, non-compoundable, and triable by a 1st class Magistrate.

Delivery of Indian coin possessed with knowledge that it is altered

According to Section 251; anyone possessing any Indian coin in respect of which any offence under Section 247 or 249 has been committed, and he was aware of the commission of such offence under these prescribed sections, while such possession being coupled with fraudulent intent, delivers such coin to another person or attempts inducing another person to receive such coin, shall be punishable with rigorous or simple imprisonment for 10 years at a maximum along with fine.

Ingredients:

1. The accused possessed any Indian coin with respect to which the offences mentioned under Sections 247 & 249 has been committed;
2. The accused was aware in relation to the commission of the offences;
3. Such possession by the accused was done with the fraudulent intent of delivering the Indian coin or inducing the receiver to receive it.

The offence is cognizable, non-bailable, non-compoundable, and triable by a 1st class Magistrate.

Possession of coin by person who knew it to be altered when he became possessed thereof

According to Section 252; anyone possessing any coin with fraudulent intent with respect to which an offence under the Section 246 & 248 has been committed, and the possessor is aware of such commission at the time of becoming possessed thereof, shall be liable to either rigorous or simple imprisonment extending up to 3 years along with fine.

Ingredients:

1. The accused possessed a coin in respect of which an offence under Section 246 & 248 was committed;
2. The accused was aware of such a commission during the possession;
3. The accused held such possession with fraudulent intent.

Possession of Indian coin by person who knew it to be altered when he became possessed thereof

According to Section 253; anyone possessing an Indian coin with fraudulent intent with respect to which an offence under the Section 247 & 249 has been committed, and the possessor is aware of such commission at the time of becoming possessed thereof, shall be liable to either rigorous or simple imprisonment extending up to 5 years along with fine.

Ingredients:

1. The accused possessed an Indian coin in respect of which an offence under Section 247 & 249 was committed;
2. The accused was aware of such a commission during the possession;
3. The accused held such possession with fraudulent intent.

Delivery of an altered coin as genuine of which the deliverer was unaware when he possessed it for the first time 

According to Section 254; anyone delivering to another person as genuine or as a coin of a different descrip­tion from what it is, or attempts inducing 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 operation men­tioned under section 246, 247, 248 or 249 has been performed, but of which he was unaware, at the time when he took it into his possession, shall be punishable with either rigorous or simple imprisonment for a term extending up to 2 years, along with a fine of 10 times the actual value of the coin in question.

Counterfeiting Government stamp

According to Section 255; whoever counterfeits or knowingly participates in a counterfeiting process relating to any stamp issued by the Government of India for revenue purposes, shall be punished with life or rigorous or simple imprisonment for a maximum of 10 years along with fine.

A person commits this offence if he causes a genuine stamp of one denomination to appear as that of another denomination.

The word stamp has been used generically over here. It is impressed upon a paper, parchment, or other material by means of a die, and is sold off on payment of a charge or tax printed on it for the purpose of revenue services rendered by the State.

Ingredients:

1. The accused counterfeited or knowingly participated in the counterfeiting process;
2. The counterfeit was related to a stamp issued by the Indian Government for the purposes of revenue.

Having possession of instrument or material for counterfeiting Government stamp

 According to Section 256; anyone possessing any instrument or material purporting to use or being acknowledged that such instrument or material is intended to be used for counterfeiting of revenue stamps issued by the Indian Government shall be punishable with imprisonment for a term up to 7 years at maximum accompanied with fine.

Ingredients :

1. The accused possessed any instrument or material;
2. Such instrument or material was purported to be used or the accused was aware that it was intended for being used for counterfeiting any Government stamp; and
3. The Government stamp was issued for revenue purposes.  

Making or selling instrument for counterfeiting Government stamp

According to Section 257; anyone doing any of the following acts in respect of the instrument which is purported to be used for the purpose of counterfeiting of revenue stamps issued by the Government of India-

1. Making or participating in the process of making;
2. Buying; or
3. Selling; or
4. Disposing of,

shall be punishable with either rigorous or simple imprisonment extending up to 7 years accompanied by a fine.

Sale of counterfeit Government stamp

According to Section 258; anyone selling or offering for sale in relation to a counterfeited revenue stamp issued by the Government of India shall be punishable with either rigorous or simple imprisonment extending up to 7 years accompanied by fine.

Ingredients:

1. The Government issued revenue stamp in question is counterfeited;
2. The accused knowingly sold or offered for sale such a counterfeited stamp.

The offence is cognizable, non-bailable, non-compoundable, and triable by a 1st class Magistrate.

Having possession of counterfeit Government stamp

According to Section 259; anyone possessing any revenue stamp issued by the Government while being aware that the same is a counterfeit one, and intends to use or dispose of the same as genuine, shall be punishable with either rigorous or simple imprisonment for a term of 7 years at maximum accompanied by fine.

Ingredients:

1. The accused possessed a revenue stamp issued by the Government;
2. The accused was aware or had reason to believe that such stamp is counterfeit;
3. The accused planned to use or dispose of such stamp as genuine.  

Using as genuine a Government stamp known to be counterfeit

According to Section 260; anyone using any revenue stamp issued by the Government while being aware that such a stamp is counterfeited shall be punishable with either rigorous or simple imprisonment extending until 7 years accompanied by a fine.

Ingredients :

1. The revenue stamp issued by the Government is counterfeited;
2. The accuse used such stamp while being aware of the counterfeit

The offence is cognizable, non-bailable, non-compoundable, and triable by a 1st class Magistrate.

Effacing writing from substance bearing Government stamp, or removing from document a stamp used for it, with intent to cause loss to Government

Section 261 corresponds to sections 246 & 248, of the Indian Penal Code relating to coins. Moreover, it relates to removing or effacing any substance from a Government-issued stamp or removing or effacing any writing used from such stamp or removing any writing or document any stamp. The punishment provided is either rigorous or simple imprisonment extending up to 3 years accompanied by fine.

This section deals with 2 distinct acts :

1. Removing writing from a stamp paper;
2. Removal of stamp from writing or document.

Using Government stamp known to have been before used

According to Section 262; anyone with the fraudulent intent of causing loss to the Government uses a used revenue stamp for any purpose while being aware that such stamp has been used before, shall be punishable with either rigorous or simple imprisonment for a term extending up to 2 years or with fine or both.

Ingredients :

1. The stamp in question is a revenue stamp issued by the Government;
2. The stamp has already been used and the accused reuses it;
3. The accused was aware that the stamp had been used priorly;
4. The accused had the intention of defrauding the Government.

Erasure of mark denoting that stamp has been used

According to Section 263;  three kinds of acts by the accused is punishable with rigorous or simple imprisonment up to 3 years or with fine or both:

1. Erasure or removal of a mark denoting that the stamp has been used;
2. Possession of a stamp so erased;
3. Selling or disposing of such a stamp.

Ingredients:

1. In the case of erasure, the followings are to be proved-

1. The stamp in question was issued by the Government for revenue purposes;
2. The stamp bore a used mark which the accused erased or removed;
3. Such erasure or removal was done with the intention of defrauding the Government.

2. In the case of possession, it must be proved that-

1. The stamp in question was issued by the Government for revenue purposes;
2. The stamp bore a used mark which the accused erased or removed;
3. Such erasure or removal was done with the intention of defrauding the Government.

                 

Prohibition of fictitious stamps

According to Section 263A;

1) Anyone in relation to fictitious stamp doing the followings-

a) making, knowingly uttering, dealing in or selling any fictitious stamps, or knowingly using for any postal purpose, or

b) Anybody having in his possession, without lawful excuse, any fictitious stamp, or

c) making or having in his possession any die, plate, instrument or materials for making any fictitious stamp,shall be fined up to 200 rupees.

2) Any such stamps, or die, or plate, or instrument, or materials in possession of any person for making any fictitious stamp [may be seized and, if seized] shall be forfeited.

3) According to this section “fictitious stamp” refers to any stamp falsely purporting to be issued by the Government for denoting a postage rate, or any facsimile or irritation or representation, whether on paper or otherwise, of any stamp issued by Government for that purpose.

4) In this section and also in sections 255 to 263, the word “Government”, when used in relation with, or in reference to, any stamp issued for the purpose of denoting a rate of postage, shall, notwithstanding anything in section 17, be deemed to include the person or persons authorized by law to administer the executive government in any part of India, and also in any part of Her Majesty’s dominions or in any foreign country.

Ingredients:

For convicting any person under this section the followings must be proven-

1. Making, dealing or selling fictitious stamps, or knowingly altering the same;
2. Knowingly using a fictitious stamp for any postal purpose;
3. Possession of any fictitious stamp in absence of lawful excuse;
4. Making or possessing any die, plate, or instrument or materials for fictitious stamps without lawful excuse.

Conclusion

So after making an exhaustive and introspective analysis on offences relating to coin and Government stamps under the Indian Penal Code we are aware of the various offences and their penalties.

References

1. Indian Penal Code.
2. Textbook on Indian Penal Code (6th edition) by KD Gaur.
   

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