Chapter XII of the Indian Penal Code contains up to 35 sections dealing with

counterfeiting, debasing, or altering coins, trading in counterfeiting and spurious coins, and
government stamps.

Indian coin: Meaning and Characteristics

A coin is a piece of metal or alloy that is commonly used as a form of legal tender or a means
of trade. They are used to promote exchange by being standardized in weight and
composition. Much of the time, they are provided by the sovereign’s government.

The Indian coin is described by the Code as “metal stamped and issued by the authority of
the Government of India in order to be used as currency; and metal so stamped and issued
shall continue to be Indian coin for the purposes of this Chapter, even though it has
ceased to be used as money.” As a result, a metal that isn’t used as currency isn’t a coin.
Hence, the primary characteristics of the Indian coin are:

 It must be made up of metal.

 Be stamped.
 It must be issued by the authority of the Government of India.
 Must be issued for the purpose of it being used as money.
 Need not be current or be used as money.

Offences relating to coins and Government Stamps

Counterfeiting Indian Coin

According to Section 28 of the Code,“ a person is said to counterfeit if he causes one object
to imitate another thing, planning to conduct deception by means of that resemblance, or
expecting it to be possible that deception would be performed by means of that
resemblance.”
Furthermore, the reasons clarify that the similarity of the counterfeited Indian Coin does not
have to be identical, and that the motive of the individual who committed the act can be
assumed unless proven otherwise.

In the case of State of Uttar Pradesh v HM Ismail, it was established that a counterfeit coin’s
similar resemblance to a legitimate coin is adequate for it to be circulated as such. An
individual who counterfeits or intentionally engages in the counterfeiting of an Indian coin is
sentenced to life in prison or ten years in prison with a fine under Section 232 of IPC. This
section lays down the penalties on all individuals who perform the crime of counterfeiting
Indian coins and those who assist in the commission of the offence.

Furthermore, the simple intent to cheat or experience of deceit is necessary for the crime of
counterfeiting, rather than genuine dishonesty or theft. The nature of the crime is inferred by
the closeness of imitation: purpose or awareness. As a result, plain deceit is insufficient to
lead to the commission of this crime; deception with the intent or intelligence to deceive is
required.
 The counterfeit coins may not have to be made with the primary intention of being passed off
as legitimate under this clause. It is sufficient that the counterfeit coin has such a similar
resemblance to genuine coin that it may be mistaken for the real thing.

Acts of counterfeiting: Punishable under the Code

Making or selling counterfeit coins, preparation thereof, possession of instruments or material

for use of counterfeit coins, possession with intent to deceive or knowledge of deception
likely to be practiced, importing and exporting certain Indian coins, and, most importantly,
the act of delivering counterfeit coins to others are all punishable under the Code.

Possession of instrument or material for counterfeiting Indian coin

Any person in possession of an instrument or material with the motive, information, or cause
to suspect that it is being used to counterfeit an Indian coin faces a sentence of up to ten years
in prison and a fine. As a result, mere acts of planning for counterfeiting Indian coins are
punishable under sections 234 and 235 of the IPC.

Furthermore, this provision punishes the possession of counterfeiting materials for the
purpose of counterfeiting, not the mere possession of counterfeiting materials. Possession
implies the deliberate and willful retention of an object, but simple possession does not
constitute an offence until the court may show that the accused wanted to use the object to
counterfeit an Indian coin.

Import or export of counterfeit Indian coin

Section 238 of the IPC states that anyone who intentionally or with cause to suspect imports
or exports from India is subject to a ten-year sentence of imprisonment.

Possession of counterfeit coins

Possession of any counterfeit Indian coin by a person who knew at the time of possession that
it was counterfeit and could be used to defraud someone is punishable under Section 243 of
the Code by imprisonment for not more than seven years and a fine. This means that an
individual who acquires a counterfeit coin without knowledge and then proceeds to own it to
pass it on to another cannot be found accountable because he was unaware of its falsity at the
time. Anyone’s possession is not criminal in nature.

Intent to defraud

1. Obtaining ownership with knowledge

Someone who comes into possession of a counterfeit Indian coin with knowledge of it and
fraudulently or with the intent to commit fraud delivers or tries to persuade anyone to obtain
it will face a punishment of up to ten years in jail and a fine.

1. Obtaining possession of counterfeit products without being aware of their presence

Anyone who obtains counterfeit coins without understanding they are counterfeit and
attempts to supply or persuade another person to collect them as legitimate faces a penalty of
up to two years in jail or a fine of up to ten times the worth of the counterfeited Indian coins,
or both.

Alteration of coin

Any person who, with the intent to defraud, commits any act that reduces the weight or alters
the composition of any Indian coin shall be punishable by imprisonment for not more than 7
years and a fine. In addition, anybody who tampers with the presentation of a coin with the
intent of passing it off as one with a certain description is liable to imprisonment of any
description for a period not exceeding 7 years and a fine.

Similarly, section 251 of the Code punishes a person who, with knowledge, obtains certain
Indian coins for the purpose of defrauding, delivers or tries to compel the person to receive
the delivery with a term of imprisonment not exceeding ten years and a fine.

It is close to the rules governing the possession and distribution of fake Indian coins.
Possession and distribution of altered coins is also punishable if the individual obtains
possession with knowledge of the coin’s weight, shape, or appearance being altered and
deliveries it as legitimates or tries to persuade another person to acquire the altered coin.

Possession is punishable by up to 5 years in prison and a fine, while shipping those altered
coins is punishable by up to 10 years in prison and a fine. However, it is important that the
person in possession of the altered coin was conscious that it had been altered and not
otherwise.

Often, anyone who receives such an Indian coin without knowing it has been tampered with
and delivers it with the intent or knowledge of committing or attempting to commit fraud is
subject to a sentence of not more than two years in prison and a fine of up to ten times the
value of the coin being passed or attempted to be passed, and mere possession does not make
him a criminal act as described by law.

An individual who buys spurious or altered coins for the sake of collecting them is not
committing a crime because he has no intention of defrauding anybody.

Conclusion

Thus, based on the understanding of the meaning of counterfeiting Indian coins and
counterfeiting Government stamps, as well as the essentials and characteristics of the two
offences, it can be easily deduced that rea or mental purpose is necessary for the commission
of the counterfeiting offence. It is the foundation for holding someone accountable for all the
offences.

Furthermore, it is incorrect to believe and conclude that only crimes related to counterfeiting
are punishable; in fact, it encompasses a wide range of offences and punishes for many acts
in the preparatory stage.

The law makes it illegal to build instruments or materials that can be used to forge Indian
coins. Furthermore, the IPC imposes severe penalties on any act of counterfeiting,
emphasizing the importance of prohibiting the counterfeiting of Indian coins and government
stamps.

The chapter on coins and government stamps is particularly important because it aids in the
containment of frauds involving the medium of trade, including coins, and prevents people
from gaining an unfair benefit by fraudulent practices.