Indian criminal law | Updated October 2026
IPC Section 240 and BNS Section 179: Delivery of Counterfeit Indian Coin
Section 240 of the former Indian Penal Code, 1860 punished the fraudulent delivery of counterfeit Indian coin by a person who knew it was counterfeit when they obtained it. Under the Bharatiya Nyaya Sanhita, 2023 (BNS), Section 179 addresses knowingly trafficking in or using counterfeit coins and certain other counterfeit monetary instruments as genuine.
Meaning of IPC Section 240
The former IPC Section 240 applied where a person possessed a coin that was counterfeit Indian coin, knew it to be counterfeit at the time of obtaining possession, and fraudulently or with intent that fraud may be committed delivered it to another person or attempted to induce another person to receive it.
Historical punishment: Imprisonment of either description for a term extending to ten years, and liability to a fine. The old provision specifically concerned counterfeit Indian coin and contained the stated requirement about knowledge at the time possession began.
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 covers importing, exporting, selling, delivering, buying, receiving, trafficking in or using as genuine such counterfeit articles when the person knows or has reason to believe they are forged or counterfeit.
Punishment: Imprisonment for life, or imprisonment of either description for a term which may extend to ten years, and liability to a fine. The offence and sentence depend on proof of the statutory elements and the facts of the case.
Essential ingredients
- Counterfeit subject matter: A forged or counterfeit coin, government stamp, currency note or banknote.
- Relevant conduct: Importing, exporting, selling, delivering, buying, receiving, trafficking in or using it as genuine.
- Knowledge or reason to believe: The person knew or had reason to believe the item was forged or counterfeit.
- Proof: The prosecution must establish the offence through admissible evidence, including the circumstances of the transaction and relevant expert examination.
Accidentally accepting a counterfeit coin, without the requisite knowledge or reason to believe, does not alone establish the mental element of Section 179. However, deliberately circulating an item after discovering it is counterfeit can raise different issues.
IPC Section 240 and BNS Section 179 compared
| Feature | Former IPC Section 240 | Current BNS Section 179 |
|---|---|---|
| Subject | Counterfeit Indian coin | Counterfeit coins, government stamps, currency notes and banknotes |
| Conduct | Fraudulent delivery or attempt to induce acceptance | Import, export, sale, delivery, purchase, receipt, trafficking or use as genuine |
| Knowledge | Knowledge of counterfeiting when possession began, together with fraud-related intention | Knowledge or reason to believe the article is forged or counterfeit |
| Punishment | Up to ten years and fine | Life imprisonment or up to ten years and fine |
| Application | Historical cases subject to 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 cognizable, non-bailable and triable by the Court of Session. Cognizable indicates police powers to investigate and, subject to legal safeguards, arrest without a warrant. Non-bailable does not mean bail is automatically refused; courts consider applications under the applicable statutory rules.
Practical examples
- Knowing delivery: A person who knows a coin is counterfeit deliberately passes it to a shopkeeper as genuine payment. Section 179 may be attracted.
- Innocent receipt: A customer unknowingly receives a counterfeit coin as change and does not know or have reason to believe it is fake. Mere receipt does not automatically establish the offence.
- Knowingly selling counterfeit notes: A person who knowingly sells forged banknotes as genuine may be covered by Section 179, even though the old IPC Section 240 concerned Indian coin.
Related legal provisions and definitions
BNS Section 178 deals with counterfeiting coin, government stamps, currency notes or banknotes; Section 180 concerns possession of forged or counterfeit items with the specified knowledge and intention; and Section 181 deals with instruments or materials for forging or counterfeiting. Section 179 focuses on trafficking and use as genuine.
The explanation to BNS Section 178 addresses the meaning of coin by reference to the Coinage Act, 2011 and specified coin issued as money by sovereign authority. The statutory definitions and evidence of counterfeiting matter in each case.
Official statutory references
- Bharatiya Nyaya Sanhita, 2023 - official Act text, Sections 178-181
- India Code - official central legislation portal
- Ministry of Home Affairs - criminal law resources
Frequently asked questions
What was IPC Section 240?
It punished fraudulent delivery, or attempts to induce acceptance, of counterfeit Indian coin where the person knew it was counterfeit when possession began. The punishment was imprisonment of either description up to ten years and a fine.
Which current law addresses passing counterfeit coins as genuine?
BNS Section 179 covers using as genuine or trafficking in forged or counterfeit coins, government stamps, currency notes or banknotes with the required knowledge or reason to believe.
What is the punishment under BNS Section 179?
Imprisonment for life or imprisonment of either description for up to ten years, and liability to a fine.
Is merely receiving a counterfeit coin a crime?
Accidental receipt without the required knowledge or reason to believe does not by itself satisfy the mental element of BNS Section 179.
What if the recipient discovers the coin is fake later?
Subsequent knowledge alone does not establish an offence; knowingly circulating it as genuine afterwards may attract BNS Section 179, depending on the evidence.
Does BNS Section 179 also cover counterfeit banknotes?
Yes. It expressly covers forged or counterfeit currency notes and banknotes, as well as coins and government revenue stamps.
Is an offence under BNS Section 179 bailable?
The BNSS First Schedule classifies the offence under BNS Section 179 as cognizable and non-bailable, triable by the Court of Session.
Is IPC Section 240 still applicable?
The IPC was replaced by the BNS from 1 July 2024. Historical conduct may still fall under the IPC according to repeal and savings rules.
This article provides general information and is not legal advice. Consult the latest official statutory text and case-specific legal guidance.