IPC Section 254: Delivery of Altered Coin as Genuine - Punishment and Current BNS Law
Former Section 254 of the Indian Penal Code, 1860 punished a person who initially received an altered coin without knowing about its alteration but later discovered the alteration and nevertheless passed, or attempted to pass, that coin as genuine or as a different kind of coin.
What did IPC Section 254 provide?
Section 254 dealt with delivering a coin as genuine, or as a coin of a different description, or attempting to induce someone to receive it in that way, where the coin had undergone an alteration described in former IPC Sections 246, 247, 248 or 249. Crucially, the person did not know of the alteration when first taking possession but knew of it when subsequently attempting to pass the coin.
The punishment was imprisonment of either description for up to two years, or a fine up to ten times the value of the coin for which the altered coin was passed or attempted to be passed. The provision stated alternatives using or; it did not expressly require both imprisonment and fine.
Essential ingredients of former IPC Section 254
- Altered coin: A coin had been subjected to an operation described in former Sections 246, 247, 248 or 249, such as a deceptive change to weight, composition or appearance.
- Initial lack of knowledge: The person was unaware of the alteration when first receiving the coin.
- Subsequent knowledge: Before the delivery or attempted delivery, the person learned that the coin had been altered.
- Delivery or attempt: The person delivered it as genuine or as a different kind of coin, or attempted to induce another person to accept it as such.
Example: A shopkeeper unknowingly receives an altered coin. Later, after discovering the alteration, the shopkeeper deliberately attempts to pass it to a customer as an unaltered coin. This illustrates the kind of conduct addressed by former Section 254. By contrast, merely accepting a coin without knowing it is altered does not establish that offence.
Current law: BNS Sections 178 and 179
BNS Section 178 - Meaning of counterfeiting coin
Section 178 addresses counterfeiting coin, Government stamps, currency-notes and bank-notes. Its Explanation (2) links the meaning of coin to Section 2 of the Coinage Act, 2011 and extends it to certain metal money issued by a State or Sovereign Power. Explanation (4) covers making a genuine coin appear to be a different coin with deceptive intent or knowledge of likely deception. Explanation (5) includes diminishing weight or altering a coin's composition or appearance.
BNS Section 179 - Using or delivering counterfeit coin as genuine
Section 179 applies to importing, exporting, selling, delivering, buying, receiving, trafficking in or using as genuine a forged or counterfeit coin or other specified item, where the person knows or has reason to believe it is forged or counterfeit. The punishment is imprisonment for life, or imprisonment of either description for up to ten years, and fine.
Unlike former IPC Section 254, BNS Section 179 does not create a separate, lower-penalty offence specifically for a person who was innocent when first acquiring the coin but discovered the problem later. Whether an act falls within Section 179 depends on all of its statutory ingredients and the evidence.
BNS Section 180 - Possession is a distinct offence
Section 180 concerns possession of forged or counterfeit coin or other specified items with the required knowledge or reason to believe and intention to use it as genuine, or allow it to be used as genuine. Its punishment is imprisonment up to seven years, or fine, or both. The section includes an explanation concerning possession established to be from a lawful source. Mere innocent receipt should not be confused with knowingly using a counterfeit coin as genuine under Section 179.
IPC Section 254 and BNS Section 179 compared
| Question | Former IPC Section 254 | Current BNS Section 179 |
|---|---|---|
| Conduct | Passing or attempting to pass an altered coin as genuine or as a different coin | Knowingly or with reason to believe using, delivering or otherwise dealing in forged or counterfeit coin and specified items as genuine |
| Knowledge on initial receipt | Expressly required lack of knowledge when first possessed | No equivalent express distinction; knowledge or reason to believe at the time of prohibited conduct is material |
| Penalty | Up to 2 years imprisonment, or fine up to ten times the relevant coin value | Life imprisonment or up to 10 years imprisonment, and fine |
| Legal period | Earlier offences, subject to savings | Offences from 1 July 2024 onwards |
Which law applies to older offences?
The BNS commenced on 1 July 2024. Its Section 358 repeals the IPC but preserves specified previous operations, liabilities and proceedings. Article 20(1) of the Constitution prohibits retrospective imposition of a greater penalty than was applicable at the time of the act. An offence allegedly committed before commencement must therefore be assessed under the applicable former law and transitional rules rather than automatically under the higher current BNS penalty.
Related former IPC provisions
Former IPC Section 246 and Section 247 concerned reducing weight or altering composition. Section 248 and Section 249 concerned altering appearance. Former Section 250 and Section 251 concerned fraudulent delivery where the person already knew of the alteration on acquiring the coin.
Official legal sources
- Bharatiya Nyaya Sanhita, 2023 - official India Code text, particularly Sections 178, 179, 180 and 358.
- National Crime Records Bureau - BNS chapters and provisions.
- India Code legislative database - search the Indian Penal Code, 1860 and Coinage Act, 2011.
Frequently asked questions
What was the punishment under IPC Section 254?
Imprisonment of either description up to two years, or a fine up to ten times the value of the coin for which the altered coin was passed or attempted to be passed.
Does the law punish someone who innocently receives an altered coin?
Innocent receipt alone does not establish former Section 254 or current BNS Section 179. Later conduct and the person's knowledge or reason to believe are important.
Which BNS section covers knowingly passing counterfeit coins as genuine?
BNS Section 179. Section 178 supplies relevant coin-counterfeiting definitions, while Section 180 separately addresses possession with the required mental element.
General legal information, not case-specific advice. Updated 30 October 2026.