Bharatiya Nyaya Sanhita, 2023
Section 180
Possession of forged or counterfeit coin, Government stamp, currency-notes or bank-
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.
Why this exists
Counterfeit currency and forged stamps threaten public trust in money and government systems, which economies depend on. Colonial-era law (Indian Penal Code Section 243) first criminalized possession of forged currency and coins to prevent circulation of fake money. The Bharatiya Nyaya Sanhita, 2023 carried this forward as Section 180, keeping the core protection while modernizing the code's structure and adding an explicit explanation clarifying an innocent-possession defense.
How courts read it
Courts under the earlier Indian Penal Code (Sections 242-243, which covered similar ground) held that mere possession isn't enough — prosecution must prove both knowledge that the item was fake and intention to use or pass it off as genuine. Courts have also emphasized that circumstantial evidence (like quantity, concealment, or explanations for possession) often decides these cases, and that an accused's plausible explanation of innocent acquisition can shift the burden back to the prosecution.
Common misconceptions
- Myth: Just having a fake note or coin automatically makes you guilty.
Fact: You must also know (or have reason to believe) it's fake AND intend to use it as genuine — accidental or unknowing possession isn't a crime. - Myth: Once you're caught with fake currency, there's no defense.
Fact: The law explicitly allows a defense: if you prove the fake item came from a lawful source (like you received it unknowingly in a transaction), you won't be held guilty.