Bharatiya Nyaya Sanhita: Section 180 – Possession of forged or counterfeit coin, Government stamp, currency-notes or bank-notes

Whoever has in his possession any forged or counterfeit coin, stamp, currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both.

Explanation.—If a person establishes the possession of the forged or counterfeit coin, stamp, currency-note or bank-note to be from a lawful source, it shall not constitute an offence under this section.

Simplified Explanation

This section deals with the possession of forged or counterfeit coins, government stamps, currency-notes, or bank-notes by a person, knowing or having reason to believe that they are forged or counterfeit, and intending to use or allow the use of such items as genuine.

Key Provisions

1. Offense Description:
   • A person commits an offense if they have in their possession any:
     • Forged or counterfeit coin,
     • Government stamp,
     • Currency-note, or
     • Bank-note,
     • Knowing or having reason to believe that the item is forged or counterfeit.
   • The person must also have the intent to either:
     • Use the forged or counterfeit item as genuine, or
     • Allow it to be used as genuine.
2. Punishment:
   • The punishment for this offense is:
     • Imprisonment of either description for a term that may extend to seven years, or
     • Fine, or
     • Both.
3. Explanation:
   • If a person can prove that the possession of the forged or counterfeit item came from a lawful source, then it shall not constitute an offense under this section. This suggests that mere possession of such items without fraudulent intent or unlawful acquisition does not attract liability.

Key Elements of the Offense

1. Possession:
   • The person must have physical possession of the forged or counterfeit item, which means having the item on their person, in their property, or under their control.
2. Knowledge or Belief:
   • The person must either know or have reason to believe that the item is forged or counterfeit. This requirement targets the intent and awareness of the individual, meaning they cannot claim ignorance about the fraudulent nature of the item.
3. Intent to Use or Facilitate Use as Genuine:
   • To be convicted, the person must possess the item with the intent to use it as if it were genuine, or facilitate its use by others as genuine. This is a key factor that distinguishes mere possession from actual fraudulent activity.

Example of Offense Under Section 180

1. Possessing Fake Currency:
   • A person has several counterfeit currency-notes in their wallet, knowing they are fake, and intends to use them to buy goods or services as if they were genuine notes.
2. Holding Counterfeit Stamps:
   • A person possesses a batch of counterfeit government stamps, knowing they are fake, and intends to use them for fraudulent transactions such as mailing or other official purposes.
3. Trafficking in Counterfeit Money:
   • An individual has a stash of fake coins or bank-notes in their home, intending to use them in the future or sell them to others for use as legitimate currency.

Defense Under Section 180

• Lawful Source:
  • If a person can show that the counterfeit or forged item came from a lawful source (e.g., unknowingly receiving counterfeit money from a legitimate transaction or finding it without any intent to use it fraudulently), they will not be liable under this section. This highlights that knowledge and intent are critical factors for establishing guilt.

Purpose and Rationale

1. Protection of Financial Systems:
   • This section aims to prevent the circulation of fraudulent financial instruments. While counterfeiting (creating fake money or currency) is heavily penalized, so too is the possession of these items with the intent to deceive others.
2. Deterrence of Fraudulent Intent:
   • By penalizing those who possess counterfeit items with the intent to use them as genuine, the law seeks to reduce fraud and maintain the integrity of the country’s financial system.
3. Proportional Penalty:
   • The punishment of up to seven years in prison is designed to deter individuals from possessing counterfeit items, especially if they plan to use or distribute them. However, the possibility of fine or both provides a more flexible range of penalties, depending on the severity of the offense.

Conclusion

Section 180 of the Bharatiya Nyaya Sanhita 2023 criminalizes the possession of forged or counterfeit coins, stamps, currency-notes, or bank-notes if the person knows or believes them to be counterfeit and intends to use or allow them to be used as genuine. The law seeks to safeguard the financial system by preventing the circulation of fraudulent items. The penalties—ranging from imprisonment of up to seven years to fine or both—are aimed at deterring such offenses. However, if the individual can prove the items were acquired from a lawful source, no offense is committed under this section.