BNS Section 181 – Making or possessing instruments or materials for forging or counterfeiting coin, Government stamp, currency notes or bank-notes

The Indian Penal Code (IPC) Section – 233,235,256,257,489D

Making or Possessing Instruments or Materials for Forging or Counterfeiting Coin, Government Stamp, Currency-Notes, or Bank-Notes

Legal Provision:

This section targets individuals who are involved in the creation, repair, or possession of tools and materials intended for the purpose of forging or counterfeiting coins, government-issued stamps, currency-notes, or bank-notes. The law applies to those who either manufacture or possess such instruments with the intent to use them for counterfeiting.

Key Points:

1. Offense of Making or Possessing Forgery Instruments:

• The law addresses individuals who:
  • Make or mend machinery, dies, instruments, or materials used for forging or counterfeiting.
  • Buy, sell, or dispose of such materials or tools with knowledge that they are meant for counterfeiting.
  • Possess machinery or materials that they know or have reason to believe will be used for counterfeiting coins, government stamps, currency-notes, or bank-notes.

2. Scope of Activities:

The prohibited activities under this section include:

• Making: Manufacturing tools, machinery, or materials specifically designed for forging or counterfeiting.
• Mending: Repairing or modifying existing tools or materials to be used in future counterfeiting.
• Selling or Disposing: Engaging in the sale or distribution of these materials with the knowledge of their intended illegal purpose.
• Possession: Holding or keeping machinery, dies, or materials with the intention to use them for counterfeiting, or knowing they are meant for such use.

3. Punishment:

• The punishment for this offense can be severe:
  • Imprisonment for life, or
  • Imprisonment (either rigorous or simple) for up to ten years.
  • A fine may also be imposed in addition to imprisonment.

4. Knowledge or Belief of Intended Use:

For this offense to be established, the individual must have either:

• Knowledge that the materials or instruments are intended for counterfeiting or forging.
• Reason to believe that the items will be used for such illegal activities.

5. Types of Forged or Counterfeit Items:

This law applies to counterfeiting the following items:

• Coins: Any coin issued by or under the authority of a sovereign state.
• Government Stamps: Official stamps issued by the government for revenue collection or other official purposes.
• Currency Notes: Paper money issued by the government.
• Bank Notes: Promissory notes or other legal tender authorized by the government or central bank.

6. Importance of Preventing Counterfeiting:

• The law is crucial in preventing the circulation of counterfeit currency and stamps, which can disrupt the financial stability of the country and harm the economy.
• This provision not only targets counterfeiters but also those who produce or distribute the tools and materials that enable such illegal activities, addressing the root causes of counterfeiting operations.

7. Seriousness of the Offense:

• The law treats making or possessing such materials as a serious crime because it demonstrates an intent to engage in or facilitate illegal counterfeiting operations.
• Even if counterfeiting does not occur, the intent or preparation to counterfeit is enough for the individual to be charged under this law.

8. Intent and Responsibility:

• The individual does not need to have actually forged or counterfeited a coin, stamp, or note to be found guilty. The intent to use the materials for forgery or the knowledge that they will be used for counterfeiting is sufficient.
• Those who buy or sell such materials, knowing their intended purpose, are equally liable under this section.

Legal Classification:

This section emphasizes the importance of addressing not just the act of counterfeiting, but also the tools and materials that enable such illegal activities. By imposing severe penalties for those involved in the manufacture, possession, or sale of such instruments, the law seeks to curb the root causes of counterfeiting and protect the nation’s financial integrity.