IPC Section 242: Possession of Counterfeit Coin and Current BNS Law
Section 242 of the Indian Penal Code, 1860, punished fraudulent possession of a counterfeit coin where the person knew that it was counterfeit when acquiring it. For conduct governed by the law in force from 1 July 2024, the principal corresponding provision is Section 180 of the Bharatiya Nyaya Sanhita, 2023.
What did IPC Section 242 provide?
The heading of Section 242 was Possession of counterfeit coin by person who knew it to be counterfeit when he became possessed thereof. It addressed a person who, fraudulently or with intent that fraud might be committed, possessed a counterfeit coin and knew it was counterfeit at the time possession began.
Historical punishment: Imprisonment of either description for a term extending to three years, and liability to a fine. The statutory language used and shall also be liable to fine.
Essential ingredients of the former offence
- The object in possession was a counterfeit coin.
- The accused possessed the coin fraudulently or with intent that fraud might be committed.
- The accused knew it was counterfeit when first taking possession.
Thus, accidental or innocent possession alone did not satisfy the statutory elements of IPC Section 242.
BNS Section 180: Present law on possession of counterfeit coin
Section 180 of the Bharatiya Nyaya Sanhita, 2023 deals with possession of forged or counterfeit coin, Government stamp, currency-notes or bank-notes. It applies where a person possesses such an item, knows or has reason to believe that it is forged or counterfeit, and intends to use it as genuine or that it may be used as genuine.
Punishment: Imprisonment of either description for up to seven years, or fine, or both.
Ingredients of BNS Section 180
- Possession of a forged or counterfeit coin, Government stamp, currency-note or bank-note.
- Knowledge or reason to believe that the item is forged or counterfeit.
- Intention to use it as genuine or that it may be used as genuine.
- Consideration of the statutory lawful-source explanation.
Definitions and related legal provisions
BNS Section 178: Deals with counterfeiting coin, Government stamps, currency-notes and bank-notes. Its explanations define relevant terms. For this Chapter, a coin has the meaning assigned by Section 2 of the Coinage Act, 2011, and also includes qualifying metal stamped and issued as money by a State or Sovereign Power. Counterfeiting coin includes deceptive alteration of appearance, weight or composition.
BNS Section 179: Covers specified dealings in or use as genuine of forged or counterfeit coin, Government stamps, currency-notes or bank-notes, with knowledge or reason to believe they are forged or counterfeit. It provides imprisonment for life or imprisonment up to ten years, and fine. The act of using or circulating a counterfeit item should be distinguished from mere possession under Section 180.
IPC Section 242 and BNS Section 180 compared
| Issue | IPC Section 242 (former law) | BNS Section 180 (current law) |
|---|---|---|
| Subject | Counterfeit coin | Forged or counterfeit coin, Government stamp, currency-note or bank-note |
| Knowledge | Knowledge at the time possession began | Knowledge or reason to believe the item is forged or counterfeit |
| Required intention | Fraudulent possession or intent that fraud may be committed | Intent to use as genuine or that it may be used as genuine |
| Maximum imprisonment | Three years | Seven years |
| Fine | Also liable to fine | Fine alone or with imprisonment |
| Lawful-source explanation | No equivalent express explanation in Section 242 | Express statutory explanation |
Practical example
A shopkeeper unknowingly receives a counterfeit coin in an ordinary transaction. Merely receiving it without knowledge or fraudulent intention does not by itself establish the offence. If the shopkeeper later discovers that the coin is counterfeit and intends to circulate it as genuine, Section 180 or Section 179 of the BNS may become relevant, depending on the acts and evidence. The lawful-source explanation under Section 180 must also be considered.
Frequently asked questions
Is IPC Section 242 still applicable?
It was repealed as part of the IPC's replacement by the BNS with effect from 1 July 2024, subject to applicable saving provisions for earlier acts and proceedings.
What is the corresponding BNS section for IPC Section 242?
BNS Section 180 is the principal corresponding provision concerning knowing possession of counterfeit coin, though its wording and scope differ.
Is simply holding a counterfeit coin a crime?
Not automatically. The statutory knowledge and intention requirements matter. Section 180 also expressly addresses possession established to be from a lawful source.
What if someone knowingly passes a counterfeit coin as genuine?
BNS Section 179 may apply to specified dealings or use as genuine, depending on the evidence and circumstances.
Official legislation and further reading
- Bharatiya Nyaya Sanhita, 2023 - official India Code PDF (Sections 178-180)
- National Crime Records Bureau - BNS chapter-wise provisions
- Indian Penal Code, 1860 - sections and punishments
Updated 30 October 2026. This article is general legal information; the applicable provision depends on the date of the alleged act and the facts of the case.