Indian criminal law | Updated October 2026
IPC Section 239: Delivery of Counterfeit Coin - Current BNS Section 179
Section 239 of the Indian Penal Code, 1860 punished the fraudulent delivery of a counterfeit coin by a person who knew it was counterfeit when obtaining possession. For conduct governed by the Bharatiya Nyaya Sanhita, 2023, the relevant current provision is generally BNS Section 179, concerning dealing in or using forged or counterfeit coins and other specified monetary items as genuine.
What was IPC Section 239?
IPC Section 239, titled Delivery of coin, possessed with knowledge that it is counterfeit, applied when a person possessed a counterfeit coin, knew it to be counterfeit at the time of acquiring possession, and fraudulently or with intent that fraud might be committed delivered it to another person or attempted to induce another person to receive it.
Former punishment: Imprisonment of either description for a term extending to five years, and liability to a fine. The old law specifically distinguished this offence from cases where knowledge of counterfeiting arose only after the coin was received.
Current law: BNS Section 179
Section 179 of the Bharatiya Nyaya Sanhita, 2023 is titled Using as genuine, forged or counterfeit coin, Government stamp, currency-notes or bank-notes. It applies to a person who, knowing or having reason to believe an item is forged or counterfeit, sells to, buys or receives from another person, otherwise traffics in, or uses as genuine a forged or counterfeit coin, government stamp, currency note or banknote.
Current punishment: Imprisonment for life or imprisonment of either description for up to ten years, and liability to a fine. The sentence depends on the offence proved and the circumstances of the case.
Essential ingredients under BNS Section 179
- Specified item: A coin, government stamp, currency note or banknote that is forged or counterfeit.
- Prohibited conduct: Selling, buying, receiving, trafficking in or using the item as genuine.
- Mental element: Knowledge or reason to believe the item is forged or counterfeit.
- Proof: The prosecution must establish the relevant act and mental element beyond reasonable doubt. Expert examination, communications and surrounding facts may be relevant.
Merely handling a counterfeit coin unknowingly is not, by itself, enough to establish the required mental element. Conversely, knowingly passing a counterfeit coin as genuine may attract liability even when the person did not manufacture it.
IPC Section 239 and BNS Section 179 compared
| Issue | Former IPC Section 239 | Current BNS Section 179 |
|---|---|---|
| Subject | Counterfeit coin | Counterfeit coin, government stamp, currency note or banknote |
| Prohibited act | Fraudulent delivery or attempt to induce receipt | Selling, buying, receiving, trafficking in or using as genuine |
| Knowledge requirement | Knowledge at the time of obtaining possession, plus fraud or intent that fraud may be committed | Knowledge or reason to believe the item is forged or counterfeit |
| Punishment | Up to five years and fine | Life imprisonment or up to ten years and fine |
| Application | Historical cases subject to applicable savings | Cases governed by BNS from 1 July 2024 |
Arrest, bail and trial
Under the First Schedule to the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), the offence under BNS Section 179 is classified as cognizable and non-bailable, and is triable by the Court of Session. Cognizable offences permit police investigation without prior magistrate authorisation, subject to applicable safeguards. Non-bailable does not mean that bail is legally impossible; judicial consideration and statutory conditions apply.
Practical illustrations
- Knowingly passing a fake coin: A trader learns that a coin is counterfeit and deliberately gives it to a customer as genuine. The conduct may fall under BNS Section 179.
- Counterfeit banknotes: A person knowingly sells counterfeit banknotes as real currency. BNS Section 179 expressly extends beyond coins to banknotes.
- Unknowing receipt: A customer unknowingly receives a counterfeit coin as change. Mere innocent receipt does not establish the knowledge or reason-to-believe requirement.
- Suspected item set aside: A shopkeeper identifies a suspicious coin and sets it aside for verification instead of circulating it. The facts differ from knowingly using it as genuine.
Related BNS provisions and definitions
BNS Section 178 concerns counterfeiting coin, government stamps, currency notes or banknotes; Section 180 deals with possession of such forged or counterfeit items with the requisite knowledge and intention to use them as genuine; and Section 181 concerns machinery, instruments and materials for counterfeiting. The offences have distinct elements.
For purposes of this chapter, the explanation to BNS Section 178 addresses the meaning of coin, with reference to the Coinage Act, 2011. The statutory definitions should be read with the precise allegations and evidence.
Official legislation and references
- Bharatiya Nyaya Sanhita, 2023 - official India Code PDF (Sections 178-181)
- India Code - official central legislation database
- Ministry of Home Affairs - criminal law updates
Frequently asked questions
What did IPC Section 239 punish?
It punished fraudulent delivery of counterfeit coin, or attempting to induce another person to receive it, where the accused knew the coin was counterfeit when acquiring possession. The maximum imprisonment was five years, with a fine.
What is the current BNS provision for knowingly passing counterfeit coins?
BNS Section 179 covers selling, buying, receiving, trafficking in or using as genuine a forged or counterfeit coin, government stamp, currency note or banknote, with the required knowledge or reason to believe.
What punishment is prescribed by BNS Section 179?
Imprisonment for life or imprisonment of either description for a term up to ten years, and liability to a fine.
Is every accidental payment with a counterfeit coin a crime?
No. The prosecution must establish the relevant act and the required knowledge or reason to believe the item is forged or counterfeit.
What if the person discovers a coin is counterfeit after receiving it?
The historical wording of IPC 239 specifically required knowledge when possession was acquired. Under current law, the applicable facts and mental element of BNS 179 must be examined; later discovery does not authorise knowingly using a counterfeit as genuine.
Is BNS Section 179 cognizable and bailable?
The offence is classified as cognizable and non-bailable under the BNSS First Schedule, and triable by a Court of Session.
Does BNS Section 179 apply to counterfeit currency notes?
Yes. The provision covers counterfeit coins, government stamps, currency notes and banknotes.
Does IPC Section 239 still govern new offences?
The BNS came into force on 1 July 2024. The IPC can remain relevant to conduct occurring before commencement, subject to repeal, savings and transitional rules.
This material provides general legal information, not case-specific advice. For any prosecution or bail application, consult the statutory text, current notifications and relevant judicial decisions.