Indian criminal law | Updated 30 October 2026
IPC Section 235 and BNS Section 181: Possession of Instruments for Counterfeiting Coin
Former Section 235 of the Indian Penal Code, 1860 penalised possession of instruments or materials intended for counterfeiting coins. The corresponding current provision is Section 181 of the Bharatiya Nyaya Sanhita, 2023 (BNS), which covers a wider range of counterfeiting equipment and instruments.
What did IPC Section 235 provide?
Section 235 punished a person who possessed any instrument or material for the purpose of using it to counterfeit coin, or who knew or had reason to believe that it was intended for that purpose. The section distinguished between coin generally and Indian coin.
Historical punishment under IPC Section 235
- Counterfeiting coin generally: imprisonment of either description for a term extending to three years, and liability to a fine.
- Where the intended counterfeit was Indian coin: imprisonment of either description for a term extending to ten years, and liability to a fine.
The distinction in the former IPC text matters when interpreting older cases and charges. The present BNS provision does not reproduce that two-tier punishment structure.
Current law: BNS Section 181 explained
Section 181 of the Bharatiya Nyaya Sanhita, 2023 is titled Making or possessing instruments or materials for forging or counterfeiting coin, Government stamp, currency-notes or bank-notes. It covers making, mending, buying, selling, disposing of, or possessing machinery, a die, an instrument or material for use in forging or counterfeiting specified items, where the person has the prohibited purpose or knows or has reason to believe that the item is intended for such use.
The specified items are coins, stamps issued by Government for revenue purposes, currency notes and banknotes. Thus, the provision addresses more than just coin-counterfeiting tools.
Essential ingredients of the offence
- Relevant item: machinery, a die, an instrument or material capable of being used in the counterfeiting process.
- Prohibited conduct: making, mending, taking part in making or mending, buying, selling, disposing of, or possessing the item.
- Required mental element: the item is intended for counterfeiting, or the accused knows or has reason to believe it is intended for that purpose.
- Covered target: a coin, Government revenue stamp, currency note or banknote.
Possession alone, without proof of the statutory purpose, knowledge or reason to believe, does not automatically establish the offence. The surrounding circumstances and evidence are important.
Punishment and criminal procedure under BNS Section 181
| Issue | Current legal position |
|---|---|
| Provision | BNS Section 181 |
| Punishment | Imprisonment for life, or imprisonment of either description up to ten years, and liability to a fine |
| Nature | Cognizable |
| Bail classification | Non-bailable |
| Trial court | Court of Session |
| Procedure source | First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) |
Cognizable means police may investigate a cognizable offence under the applicable procedural rules. Non-bailable does not mean bail is prohibited; it means bail is not automatically available as of right and is subject to the governing legal tests and judicial discretion.
IPC Section 235 and BNS Section 181 compared
| Feature | IPC Section 235 (former) | BNS Section 181 (current) |
|---|---|---|
| Main conduct | Possession of coin-counterfeiting instruments or materials | Making, mending, buying, selling, disposing of or possessing counterfeiting machinery, instruments or materials |
| Items counterfeited | Coin, with separate treatment of Indian coin | Coin, Government revenue stamps, currency notes and banknotes |
| Maximum punishment | Three years generally; ten years for Indian coin, plus fine | Life imprisonment or imprisonment up to ten years, plus fine |
Practical illustrations
- Purpose-built dies: A person stores dies specifically manufactured to create imitation circulating coins and knows their intended use. This may attract Section 181.
- Equipment supplied knowingly: A supplier sells specialised equipment knowing that it is intended to manufacture counterfeit currency. The buying or selling limb may apply.
- Ordinary workshop tools: A mechanic lawfully keeps general metalworking equipment without any counterfeiting purpose or knowledge. Mere possession does not by itself satisfy the mental element of Section 181.
- Counterfeit notes rather than equipment: Possessing counterfeit banknotes with the requisite knowledge and intention may raise Section 180 instead; possessing equipment intended to make such notes may raise Section 181.
Related BNS provisions
- BNS Section 178: the substantive offence of counterfeiting coins, Government revenue stamps, currency notes or banknotes, with the chapter's explanatory definitions.
- BNS Section 179: dealing in or using as genuine forged or counterfeit items with the requisite knowledge or reason to believe.
- BNS Section 180: possession of forged or counterfeit coins, stamps or notes with the specified mental element and intention of genuine use.
- BNS Section 181: instruments, machinery or materials intended for counterfeiting.
Official legal references
- Bharatiya Nyaya Sanhita, 2023 - official India Code PDF (Sections 178 to 181).
- India Code - official central legislation repository (IPC, BNS and BNSS).
- Bureau of Police Research and Development - BNS and IPC comparison (mapping of IPC 235 to BNS 181).
- Ministry of Home Affairs (criminal-law implementation and official materials).
Frequently asked questions
What did IPC Section 235 prohibit?
Possession of an instrument or material intended for counterfeiting coin, or possession with knowledge or reason to believe it was intended for that purpose.
What was the punishment under IPC Section 235?
For coin generally, imprisonment of either description up to three years and fine. Where the coin to be counterfeited was Indian coin, imprisonment of either description up to ten years and fine.
Which BNS provision now covers IPC Section 235?
BNS Section 181 consolidates offences concerning making, dealing in and possessing machinery, dies, instruments or materials intended for counterfeiting coins, Government revenue stamps, currency notes or banknotes.
What is the punishment under BNS Section 181?
Imprisonment for life or imprisonment of either description up to ten years, and liability to a fine.
Is BNS Section 181 cognizable and bailable?
It is classified as cognizable and non-bailable under the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023.
Which court tries an offence under BNS Section 181?
The First Schedule to the BNSS specifies trial by a Court of Session.
Is owning a metalworking tool automatically a crime?
No. The prosecution must establish the statutory purpose or the requisite knowledge or reason to believe that the item is intended for counterfeiting; lawful ordinary possession alone is insufficient.
How is possessing counterfeiting equipment different from possessing counterfeit coins?
BNS Section 181 concerns machinery, dies, instruments or materials intended for counterfeiting. BNS Section 180 separately addresses possession of forged or counterfeit coin, stamps or notes with the specified knowledge and intent.
This article is general legal information, not case-specific advice. For alleged offences, check the applicable date, statutory text, evidence and any relevant judicial orders.