IPC Section 489D: Making or Possessing Instruments or Materials for Counterfeiting Currency
Current law: The corresponding provision is Section 181 of the Bharatiya Nyaya Sanhita, 2023 (BNS), effective from 1 July 2024. Section 489D IPC remains relevant to conduct occurring before the changeover, subject to repeal and savings provisions.
Counterfeiting-related offences are not confined to printing fake currency. Criminal liability can also arise from manufacturing, repairing, buying, selling or possessing equipment and materials for the purpose of forging or counterfeiting currency, when the requirements of the law are met. The current BNS provision consolidates a broader range of counterfeiting equipment offences.
Meaning of Section 489D IPC
Under Section 489D of the Indian Penal Code, 1860, a person committed an offence by making, taking part in making, buying, selling, disposing of or possessing machinery, an instrument or material for the purpose of use in forging or counterfeiting currency-notes or bank-notes, or while knowing or having reason to believe that it was intended for that purpose.
Original IPC punishment: imprisonment for life, or imprisonment of either description for up to ten years, and liability to fine.
Current provision: Section 181 BNS
Section 181 BNS is titled Making or possessing instruments or materials for forging or counterfeiting coin, Government stamp, currency-notes or bank-notes. It applies to a person who makes or mends, participates in making or mending, buys, sells, disposes of or possesses machinery, a die, an instrument or material for use in counterfeiting, or with knowledge or reason to believe it is intended for that purpose.
The section expressly covers coins, Government revenue stamps, currency-notes and bank-notes. Compared with IPC 489D, its scope is wider because the new section brings together provisions concerning equipment for counterfeiting coins and Government stamps as well as currency.
Essential ingredients of the offence
- Specified article: machinery, a die, an instrument or material relevant to forging or counterfeiting.
- Specified conduct: making, mending, participating in those processes, buying, selling, disposing of or possessing the article.
- Counterfeiting connection: the article is for use in counterfeiting the specified currency, coin or Government revenue stamp, or the accused knows or has reason to believe it is intended for that use.
- Proof: the surrounding circumstances and evidence must establish the legal ingredients; mere ownership of an ordinary multipurpose machine is not automatically criminal.
Punishment, bail and trial
| Legal issue | Position |
|---|---|
| Former law | IPC Section 489D |
| Current law | BNS Section 181 |
| Punishment | Imprisonment for life, or imprisonment of either description up to ten years, and liability to fine |
| Cognizability | Cognizable |
| Bail classification | Non-bailable |
| Court of trial | Court of Session |
The procedural classifications above refer to the First Schedule of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS). Non-bailable does not mean that bail can never be granted; it means bail is governed by the applicable judicial discretion and statutory requirements.
Illustrative situations
Example 1: A person knowingly supplies specially prepared counterfeit currency printing plates to a group producing forged bank-notes. Such conduct may fall within Section 181, depending on proof.
Example 2: A person possesses a printing machine for a legitimate commercial business, without evidence of counterfeiting purpose or the requisite knowledge. Possession of that machine alone does not establish the offence.
Example 3: A person repairs a die knowing it is intended to counterfeit coins or Government revenue stamps. The conduct may be covered by the express language of Section 181 BNS.
Evidence and legal considerations
Investigations may involve forensic examination of dies, plates, printing equipment, ink, security-feature replicas, digital files, purchase records, communications and recovered counterfeit articles. The prosecution must prove the statutory ingredients beyond reasonable doubt. The significance and admissibility of any particular item of evidence depend on applicable law and the facts.
Related counterfeiting offences
IPC Section 489A (now covered by BNS Section 178) concerns counterfeiting itself; IPC Section 489B (BNS Section 179) concerns using or trafficking in counterfeits; IPC Section 489C (BNS Section 180) concerns possession of counterfeit currency with the required intent. IPC Section 489E corresponds to BNS Section 182 on documents resembling currency-notes or bank-notes.
Frequently asked questions
What is IPC Section 489D?
It penalised making, buying, selling, disposing of or possessing machinery, instruments or materials intended for forging or counterfeiting currency-notes or bank-notes.
What is the equivalent of IPC 489D under the BNS?
Section 181 of the Bharatiya Nyaya Sanhita, 2023, covers counterfeiting equipment and materials for coins, Government revenue stamps, currency-notes and bank-notes.
What is the punishment under BNS Section 181?
Imprisonment for life, or imprisonment of either description for up to ten years, and liability to fine.
Is possession of a printer or machine automatically an offence?
No. The prosecution must establish the statutory connection with counterfeiting, including the specified purpose or knowledge or reason to believe that the equipment or materials were intended for that use.
Is BNS Section 181 bailable?
The First Schedule of the Bharatiya Nagarik Suraksha Sanhita classifies the offence as cognizable and non-bailable, triable by a Court of Session.
Official legislation and references
Consult the Bharatiya Nyaya Sanhita, 2023 (official India Code PDF), particularly Sections 178 to 182, and the India Code legislation portal. The Bureau of Police Research and Development BNS reference identifies the IPC provisions consolidated in BNS Section 181. For procedural rules, consult the BNSS First Schedule.
Updated: 31 October 2026. General legal information only; the applicable statute and procedural law should be checked for the date and jurisdiction of an alleged offence.