Bharatiya Nyaya Sanhita, 2023
Section 181
Making or possessing instruments or materials for forging or counterfeiting coin,
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.
Why this exists
Counterfeiting currency and government stamps undermines public trust in money and revenue systems, and can destabilize the economy. Rather than waiting until fake coins or notes are actually produced and circulated, lawmakers wanted to stop the process earlier — by criminalizing the manufacture, trade, or possession of the tools and materials used to make counterfeits. This mirrors earlier Indian Penal Code provisions (like Sections 233–235 for coins and 489D for currency notes), now consolidated under the Bharatiya Nyaya Sanhita, 2023 into a single, broader section covering coins, government stamps, and both currency and bank notes.
How courts read it
This is a newly enacted provision under the BNS, 2023, so there is no reported case law interpreting it yet. However, courts interpreting the older, similarly worded IPC provisions on counterfeiting instruments consistently held that mere possession of such tools is not enough — the prosecution must also prove guilty knowledge or intent, that is, that the accused knew or had reason to believe the item was meant for forging or counterfeiting.
Common misconceptions
- Myth: You're only guilty if you actually produce fake currency or stamps.
Fact: The law punishes making, trading, or even just possessing the tools and materials meant for counterfeiting — the fake money or stamp doesn't need to actually exist yet. - Myth: Owning equipment that could theoretically be used for counterfeiting is automatically a crime.
Fact: The provision requires that the item be meant for counterfeiting, or that the person knows or has reason to believe it will be used that way — innocent possession of general-purpose tools isn't covered.