Bharatiya Nyaya Sanhita: Section 181 – Making or possessing instruments or materials for forging or counterfeiting coin, Government stamp, currency-notes or bank-notes

Whoever makes or mends, or performs any part of the process of making or mending, or buys or sells or disposes of, or has in his possession, any machinery, die, or instrument or material for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for forging or counterfeiting any coin, stamp issued by Government for the purpose of revenue, currency-note or bank-note, 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 criminalizes the act of making, possessing, or dealing with instruments or materials that are used for the forging or counterfeiting of coins, government stamps, currency-notes, or bank-notes.

Key Provisions

1. Offenses Described:
   • The section targets several acts:
     • Making or mending (repairing or creating) any machinery, die, instrument, or material that can be used for counterfeiting.
     • Buying or selling any machinery, die, instrument, or material intended for counterfeiting.
     • Possessing any machinery, die, instrument, or material with the intent to use it, or knowing that it will be used, for forging or counterfeiting.
2. Punishment:
   • The punishment for committing any of the above actions is:
     • Imprisonment for life, or
     • Imprisonment of either description for a term which may extend to ten years, and
     • Liability to fine.

Explanation and Key Concepts

1. Machinery, Die, or Instrument:
   • These are tools or devices specifically used in the process of forging or counterfeiting. For example, a die used to stamp counterfeit coins or the machinery used to print fake bank-notes.
2. Material for Forging or Counterfeiting:
   • This refers to the raw materials used in the production of counterfeit currency, such as fake paper for currency-notes or metal for coins.
3. Knowledge or Belief of Intent:
   • A person can be held liable under this section if they have knowledge or reason to believe that the machinery, instruments, or materials they are making, possessing, or dealing with are intended to be used for forging or counterfeiting.
4. Types of Forged Items:
   • The section specifically covers the forging or counterfeiting of:
     • Coins,
     • Government stamps (such as revenue stamps),
     • Currency-notes, and
     • Bank-notes.

Examples of Offenses Under Section 181

1. Possessing Counterfeit Dies or Machinery:
   • A person possesses or keeps in their workshop a set of dies and machines specifically designed to produce fake coins, knowing they are intended for use in counterfeiting.
2. Selling Counterfeiting Equipment:
   • An individual sells machinery that is intended to be used to create fake bank-notes to someone who plans to use it for illegal purposes.
3. Creating or Repairing Counterfeit Instruments:
   • A person creates or repairs a die that will be used to stamp counterfeit currency. Alternatively, they could be involved in mending machinery that is used for printing fake government stamps.

Defense Under Section 181

• Lawful Use:
  • If a person can prove that the machinery, die, or material was not intended for counterfeiting, or that they had no reason to believe it would be used for such a purpose, it may serve as a defense. However, the burden of proof lies with the person accused of the offense.
• Lack of Knowledge or Belief:
  • A defense may also be available if the individual was unaware or had no reason to believe that the equipment they possessed was intended for counterfeiting. However, mere ignorance is generally not a sufficient defense under criminal law if a reasonable person would have had knowledge of the intended use.

Purpose and Rationale

1. Prevention of Counterfeiting:
   • The section seeks to prevent the production of forged or counterfeit currency and other financial instruments by criminalizing the tools used in counterfeiting operations.
2. Deterrence of Fraudulent Activities:
   • By imposing heavy penalties, including life imprisonment and fines, the law aims to deter individuals from engaging in or facilitating counterfeiting activities by controlling the supply of equipment used in these illegal operations.
3. Protecting the Economy:
   • Counterfeiting poses a significant threat to the economic stability of a country. This section targets the manufacturing of counterfeit items, which can erode trust in the financial system and disrupt the circulation of genuine currency.

Conclusion

Section 181 of the Bharatiya Nyaya Sanhita 2023 addresses the possession, creation, or sale of materials or instruments used for forging or counterfeiting coins, government stamps, currency-notes, or bank-notes. It imposes severe penalties, including imprisonment for life or up to ten years, along with fines, to prevent and deter the illegal manufacturing of counterfeit financial instruments. This provision targets the tools used in counterfeiting and aims to safeguard the integrity of the country’s monetary system by punishing those who engage in or facilitate these activities.