OFFENCES RELATING TO COIN, CURRENCY-NOTES, BANK-NOTES, AND GOVERNMENT STAMPS
Offences relating to coin, currency-notes, bank-notes, and government stamps are critical components of criminal law, addressing activities that undermine the integrity of a nation’s monetary and fiscal systems. These offences typically include counterfeiting, forgery, and fraudulent use of currency and stamps, which pose significant threats to economic stability and public trust.
- Counterfeiting Coins and Currency-Notes: This involves the unauthorized creation of imitation coins or currency-notes with the intention of passing them off as genuine. Counterfeiting is a severe crime due to its potential to destabilize the economy by reducing the value of legitimate money and increasing inflation.
- Forgery of Bank-Notes: Forgery extends beyond mere imitation; it includes altering genuine bank-notes to deceive others. This can involve changing the value, issuing unauthorized bank-notes, or creating entirely fictitious bank-notes.
- Fraudulent Use of Currency and Stamps: This includes the use of counterfeit money or stamps, or the possession of such items with the intent to use them. Fraudulent use also encompasses the circulation of altered or counterfeit currency and stamps, which can erode trust in the monetary system.
- Government Stamps: Offences related to government stamps involve creating or using fake stamps, which can be used to defraud the government of revenue. This can include postage stamps, tax stamps, or any other official government-issued stamps.
Counterfeiting coin, Government stamps, currency-notes or bank-notes: Section 178
This legal provision deals with the crime of counterfeiting, which involves making fake versions of coins, government stamps, currency notes, or bank notes. The penalties for such crimes are severe, including life imprisonment or up to ten years in prison, along with a fine.
- Counterfeiting Offenses:
- Coins and Bank Notes: If someone creates fake coins or bank notes, or helps in any part of the counterfeiting process, it is a serious crime. They can be punished with life imprisonment or up to ten years in prison, plus a fine.
- Government Stamps: Counterfeiting a government stamp involves making a stamp that looks like a genuine one but is of a different denomination.
- Definitions:
- Bank Note: This is a promise to pay money, issued by banks or governments, and used like money.
- Coin: This refers to metal currency issued by a government and used as money. It includes altering the metal, its weight, or its appearance to deceive others.
- Illustration:
- Counterfeiting Coins: If someone makes a fake coin to trick others into believing it is genuine, that’s counterfeiting. This includes changing the appearance, weight, or material of a coin to deceive people.
- Counterfeiting Stamps: If someone makes a stamp that looks like a genuine government stamp but is actually a different denomination, this is also considered counterfeiting.
Overall, the law aims to protect the integrity of money and official stamps by imposing severe penalties on those who create or distribute counterfeit currency or stamps.
In “Kashi Prasad vs. State of Uttar Pradesh” the Court held that mere possession of any instrument or material for counterfeiting is sufficient to hold the accused guilty. Moreover, the accused need not have ownership of the premises from where the materials are found.
In “Lal Chand Case “the Court held that instruments and materials capable of counterfeiting coins shall be deemed as instruments or materials used for the purpose of counterfeiting coins.
Using as genuine, forged or counterfeit coin, Government stamp, currency-notes or bank-notes: Section 179
This law addresses the illegal handling of counterfeit money or documents. It stipulates severe penalties for individuals involved in the import, export, sale, delivery, purchase, or use of forged or counterfeit coins, stamps, currency notes, or bank notes, provided they know or should reasonably know that these items are fake. The penalties for such actions include:
- Life imprisonment, or
- Up to ten years in prison, and
- A fine.
In other words, if someone knowingly deals with or uses fake money or documents—whether by bringing them into the country, sending them out, buying or selling them, or using them as if they were genuine—they face very serious consequences under the law. This regulation aims to combat and deter the circulation of counterfeit financial instruments and maintain the integrity of currency and official documents.
Possession of forged or counterfeit coin, Government stamp, currency-notes or bank-notes: Section 180
This law deals with possessing counterfeit coins, stamps, currency notes, or bank notes. If someone knowingly has fake money or documents and intends to use them as real or allow someone else to use them as genuine, they can be punished with:
- Up to seven years in prison, or
- A fine, or
- Both imprisonment and a fine.
However, there’s an important exception: if the person can prove that they obtained the counterfeit items from a lawful source (for example, unknowingly received them in a transaction), they won’t be held responsible under this law.
This provision ensures that innocent people who possess fake items without knowledge of their counterfeit nature, or who can prove they got them through legitimate means, are not punished.
Making or possessing instruments or materials for forging or counterfeiting coin, Government stamp, currency-notes or bank-notes: Section 181
This law addresses activities related to the illegal creation or distribution of fake money or government-issued documents. Here’s a simplified explanation:
- Making or fixing machines, tools, or materials used to create fake money or documents, or
- Buying, selling, or having such machines or materials, if you know or should know they are intended for making fake money or documents,
The penalties for this crime are:
- Life imprisonment, or
- Up to ten years in prison, and
- A fine.
They can face severe punishment, including life imprisonment or up to ten years in prison and a fine. This law aims to prevent the production and distribution of fake currency and other counterfeit government documents.
Person employed in mint causing coin to be of different weight or composition from that fixed by law: Section 187
- If someone working in a mint intentionally does something, or fails to do something, that causes coins produced by the mint to differ from the weight or composition set by law,
They can be punished with:
- Up to seven years in prison, and
- A fine.
Illustration:
Suppose an employee at a mint is responsible for overseeing the production of coins. If they:
- Deliberately alter the machinery to make coins that are lighter or heavier than the legal standard, or
- Neglect their duties in a way that results in coins not meeting the legal requirements,
They can face up to seven years in prison and a fine. This law ensures the integrity and uniformity of the currency produced by official mints.
Unlawfully taking coining instrument from mint: Section 188
This law deals with the unauthorized removal of coining tools from official mints. If someone takes any tool or instrument used for making coins out of a mint without legal permission,
They can be punished with:
- Up to seven years in prison, and
- A fine.
ILLUSTRATION:
Imagine a worker at a mint uses special machines and tools to make coins. If they:
- Steal or remove a coining tool or machine part from the mint without proper authorization, or
- Take such tools home or to another location without permission,
They can face up to seven years in prison and a fine. This law is designed to protect the security and proper functioning of the minting process.
CONCLUSION
In conclusion, offences relating to coin, currency-notes, bank-notes, and government stamps are grave crimes with far-reaching implications for a nation’s economy and public trust. Counterfeiting, forgery, and the fraudulent use of these monetary instruments can destabilize financial systems, erode public confidence, and result in significant economic losses. Robust legal frameworks and stringent penalties are essential to deter such activities and protect the integrity of the monetary and fiscal systems. Ensuring the authenticity and reliability of currency and stamps is crucial for maintaining economic stability and fostering trust in financial transactions.
