Bharatiya Nyaya Sanhita: Section 179 – Using as genuine, forged or counterfeit coin, Government stamp, currency-notes or bank-notes

Whoever imports or exports, or sells or delivers to, or buys or receives from, any other person, or otherwise traffics or uses as genuine, any forged or counterfeit coin, stamp, currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, shall be punished with imprisonment for life, or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.

Simplified Explanation

This section addresses the use, trafficking, or trade of forged or counterfeit coins, government stamps, currency-notes, or bank-notes, with the knowledge or belief that they are forged or counterfeit.

Key Provisions

1. Offense Description:
   • A person commits an offense if they:
     • Import, export, sell, buy, or deliver any forged or counterfeit coin, government stamp, currency-note, or bank-note, or
     • Traffic or use any forged or counterfeit items as though they are genuine, knowing or having reason to believe they are forged or counterfeit.
2. Punishment:
   • The punishment for this offense is:
     • Imprisonment for life, or
     • Imprisonment of either description for a term up to ten years, and
     • Fine.

Explanation

• Forged or Counterfeit Items:
  • These are items that have been fraudulently created or altered to resemble genuine currency, coins, stamps, or bank-notes, with the intent to deceive others into believing they are authentic.
• Intent or Knowledge:
  • The key element of this offense is the knowledge or reason to believe that the item being used or traded is forged or counterfeit. This means that the person involved is aware of the fraudulent nature of the item or should have reasonably known about it.
• Scope of the Offense:
  • This section not only criminalizes the use of forged or counterfeit items (such as paying for goods with fake currency) but also any transaction involving them, including import/export or trading.

Examples of Offenses Under This Section

1. Using Counterfeit Coins or Currency:
   • A person knowingly uses forged currency-notes in a transaction, believing they are genuine, or buys goods with counterfeit coins.
2. Trafficking in Fake Money:
   • An individual who imports or sells counterfeit bank-notes, knowing they are fake, and distributes them to others.
3. Buying or Selling Counterfeit Stamps:
   • A person purchases counterfeit government stamps or sells forged bank-notes, knowing they are not authentic.

Purpose and Rationale

1. Protection of the Economy:
   • This provision seeks to protect the integrity of the country’s financial system by criminalizing not only the production of counterfeit currency but also its use and distribution. The circulation of fake money disrupts trade and erodes trust in the financial system.
2. Deterrence Against Financial Fraud:
   • The severe punishment—including life imprisonment and a fine—is intended to serve as a strong deterrent against the use or trafficking of counterfeit financial instruments.
3. Ensuring the Stability of Legal Tender:
   • By penalizing individuals who knowingly use or trade counterfeit items, the section aims to ensure that only legitimate, government-issued currency and financial instruments are circulated within the economy.

Conclusion

Section 179 of the Bharatiya Nyaya Sanhita 2023 penalizes anyone who knowingly uses, traffics, or deals with counterfeit coins, government stamps, currency-notes, or bank-notes. The law aims to safeguard the integrity of the country’s currency system by criminalizing the use or trade of fraudulent financial instruments. The severe penalties, including life imprisonment and fines, are meant to deter individuals from participating in the circulation of counterfeit money, thus maintaining the stability and trustworthiness of the financial system.