This section applies the same punishment as knowingly acquiring and passing fake coin.

This section specifically applies a lighter penalty because the person did not know the coin was counterfeit when they first received it, unlike sections dealing with someone who knew from the start.

Indian Penal Code, 1860

Section 241

repealed

Delivery of coin as genuine, which, when first possessed, the deliverer did not know to be counterfeit

Whoever delivers to any other person as genuine, or attempts to induce any other person to receive as genuine, any counterfeit coin which he knows to be counterfeit, but which he did not know to be counterfeit at the time when he took it into his possession, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine to an amount which may extend to ten times the value of the coin counterfeited, or with both.§

Why this exists

This section deals with a person who innocently received counterfeit coin — perhaps as change or in a transaction — without knowing it was fake, but later realises the truth and then dishonestly passes it on anyway rather than reporting or discarding it. Because this person's original acquisition was innocent, the law treats this situation less severely than sections 239 and 240 (where the person knew the coin was fake right from the start), reflecting a lower degree of culpability while still punishing the deliberate later deception.

Common misconceptions

Myth: This section applies the same punishment as knowingly acquiring and passing fake coin.
Fact: This section specifically applies a lighter penalty because the person did not know the coin was counterfeit when they first received it, unlike sections dealing with someone who knew from the start.