The Counterfeit Script

The integrity of a nation’s monetary system is foundational to its economic stability and public trust. Recognizing the critical need to safeguard this integrity, the Bharatiya Nyaya Sanhita (BNS), 2023, introduces a comprehensive legal framework to address offences relating to coin, currency-notes, bank-notes and government stamps. These provisions aim to curb counterfeiting, forgery and other fraudulent practices that undermine public confidence in financial instruments issued by the State.

What is the punishment for counterfeiting coin, Government stamp, currency-note or bank-note?

Anyone who counterfeits or knowingly performs any part of the process of counterfeiting, any coin, Government-issued revenue stamp, currency-note or bank-note shall be punished with imprisonment for life, or with imprisonment of either description for up to ten years, and shall also be liable to fine.

What does the term bank-note mean in this context?

Bank-note refers to a promissory note or engagement for the payment of money to bearer on demand issued by any person carrying on the business of banking anywhere in the world or issued by or under the authority of any State or Sovereign Power, and intended to be used as equivalent to or a substitute for money.

What is the meaning of coin in this context?

Coin includes any metal used for the time being as money, stamped and issued by or under the authority of any State or Sovereign Power, and intended to be used as money, and has the same meaning as assigned under the Coinage Act.

What constitutes the offence of counterfeiting a Government stamp?

A person commits this offence when they counterfeit by causing a genuine stamp of one denomination to appear like a genuine stamp of a different denomination.

What constitutes the offence of counterfeiting a coin?

A person commits this offence if, intending to deceive or knowing that deception is likely, they cause a genuine coin to appear like a different coin.

What acts are included in the offence of counterfeiting a coin?

This includes diminishing the weight, altering the composition, or changing the appearance of the coin.

What is the punishment for using as genuine, any forged or counterfeit coin, Government stamp, currency-note or bank-note?

Anyone who imports, exports, sells, delivers to, buys or receives from another person, traffics in, or uses as genuine any forged or counterfeit coin, stamp, currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, shall be punished with imprisonment for life, or with imprisonment of either description for up to ten years, and shall also be liable to fine.

What is the punishment for possessing forged or counterfeit coin, Government stamp, currency-note or bank-note?

Anyone who possesses any forged or counterfeit coin, stamp, currency-note or bank-note, knowing or having reason to believe it to be forged or counterfeit, and intending to use it as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for up to seven years, or with fine, or with both.

Is there any exception to the offence of possessing forged or counterfeit currency or stamps?

Yes. If the person can establish that the possession of the forged or counterfeit item was from a lawful source, it shall not constitute an offence.

What is the punishment for making or possessing instruments or materials for counterfeiting coin, Government stamp, currency-note or bank-note?

Anyone who makes, mends, performs any part of the process of making or mending, buys, sells, disposes of, or possesses any machinery, die, instrument or material intended for counterfeiting any coin, Government revenue stamp, currency-note or bank-note, shall be punished with imprisonment for life, or with imprisonment of either description for up to ten years, and shall also be liable to fine.

What is the punishment for making or using documents resembling currency-notes or bank-notes?

Anyone who makes, causes to be made, uses for any purpose, or delivers to any person, any document resembling or purporting to resemble a currency-note or bank-note so closely as to deceive, shall be punished with a fine up to three hundred rupees.

What if a person whose name appears on such a document refuses to disclose who made it?

If such a person, without lawful excuse, refuses to disclose the name and address of the person by whom it was printed or made, he shall be punished with a fine up to six hundred rupees.

Is there any presumption regarding the name printed on a document resembling a currency-note or bank-note?

Yes. Until proven otherwise, it may be presumed that the person whose name appears on the document caused it to be made.

What is the punishment for fraudulently removing or effacing writing from a substance bearing a Government stamp with intent to cause loss to the Government?

Such a person shall be punished with imprisonment of either description for up to three years, or with fine, or with both.

What is the punishment for fraudulently using a Government stamp known to have been previously used?

Such a person shall be punished with imprisonment of either description for up to two years, or with fine, or with both.

What is the punishment for erasing or removing marks from a stamp that indicate it has been used?

Anyone who fraudulently erases or removes such marks, or knowingly possesses, sells, or disposes of such a stamp, shall be punished with imprisonment of either description for up to three years, or with fine, or with both.

What acts are prohibited concerning fictitious stamps?

The following acts are prohibited:

• Making, knowingly uttering, dealing in, or selling any fictitious stamp;
• Knowingly using any fictitious stamp for postal purposes;
• Possessing a fictitious stamp without lawful excuse;
• Making or possessing any die, plate, instrument, or material for making fictitious stamps.

What is the punishment for acts involving fictitious stamps?

The punishment is a fine which may extend to two hundred rupees.

What happens to fictitious stamps or materials found in a person’s possession?

They may be seized and shall be forfeited if seized.

What is meant by fictitious stamp?

A fictitious stamp is any stamp falsely purporting to be issued by the Government for denoting postage, or any imitation or facsimile of such a stamp.

How is Government defined in reference to stamps issued for postage?

Government includes the person or persons authorised by law to administer executive government in any part of India or any foreign country, even if that differs from the general definition of the term.

What is the punishment for a mint employee causing a coin to differ in weight or composition from legal standards?

Such a person shall be punished with imprisonment of either description for up to seven years, and shall also be liable to fine.

What is the punishment for unlawfully taking a coining instrument from a mint?

Anyone who takes out a coining tool or instrument from a lawfully established mint without authority shall be punished with imprisonment of either description for up to seven years, and shall also be liable to fine.

Therefore, the provisions under the Bharatiya Nyaya Sanhita, 2023, dealing with offences related to coin, currency-notes, bank-notes and government stamps reaffirm the State’s commitment to protecting its financial sovereignty and the integrity of its legal tender. By clearly defining the offences and prescribing stringent penalties, the law not only acts as a deterrent but also ensures swift and effective prosecution of economic offenders. In an era marked by increasing sophistication in financial crimes, such robust legal mechanisms are essential to preserving public trust and maintaining the credibility of the nation’s monetary system.

 Muneeb Rashid Malik is an Advocate. He tweets @muneebmalikrash