BNS Section 178: Counterfeiting Coin, Government Stamps, Currency-notes or bank-notes

Definition of BNS Section 178

Section 178 of the Bharatiya Nyaya Sanhita (BNS), 2023 states:
“Whoever counterfeits, or knowingly performs any part of the process of 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.”

Explanation.—For the purposes of this Chapter,—
(1) “the expression “bank-note” means a promissory note or engagement for the payment of money to bearer on demand issued by any person carrying on the business of banking in any part of the world, or issued by or under the authority of any State or Sovereign Power, and intended to be used as equivalent to, or as a substitute for money;

2) “coin” shall have the same meaning as assigned to it in section 2 of the Coinage Act, 2011 and includes metal used for the time being as money and is stamped and issued by or under the authority of any State or Sovereign Power intended to be so used;

(3) a person commits the offence of “counterfeiting Government stamp” who counterfeits by causing a genuine stamp of one denomination to appear like a genuine stamp of a different denomination;

(4) a person commits the offence of counterfeiting coin who intending to practise deception, or knowing it to be likely that deception will thereby be practised, causes a genuine coin to appear like a different coin;

(5) the offence of “counterfeiting coin” includes diminishing the weight or alteration of the composition, or alteration of the appearance of the coin.”

Explanation and Illustration of BNS Section 178

Counterfeit: Section 2 (4) of the BNS describes “counterfeit” as:
“A person who causes one thing to resemble another thing, intending by means of that resemblance to practise deception, or knowing it to be likely that deception will thereby be practised.”
In other words, when a genuine item is duplicated or replicated without the authorisation of the person or body that is responsible for the production of that item, and the duplicate is used to fool or deceive someone into believing that it is genuine, it will be considered as a counterfeiting offence under the BNS.

Knowingly performs any part of the process: What needs to be noted is that the process of counterfeiting has many steps. So a person may not be the instigator of the counterfeiting activity. But if a person has knowingly contributed even nominally to this process of counterfeiting, they will be prosecuted under this section.

Coin, Stamp, Currency-Note Or Bank-Note: While the offence of counterfeiting can apply to almost any tangible item, this section only deals with the offence of counterfeiting legal tender and government revenue stamps.

Imprisonment For Life To Ten Years, Fine: Any person found guilty of the offence will be sentenced to a prison term that may range between ten years and life imprisonment depending on the seriousness of the offence and magnitude of consequences.

• Explanation
  (1): This explanation is meant to clarify that section 178 only deals with the counterfeiting of only those notes that have been issued by a registered bank or a sovereign government and can be exchanged readily for money / currency. Counterfeiting of bank notes that do not have an exchange value on a recognised foreign exchange market do not fall under this section.
  
  (2): For the purpose of this section, coin only refers to those objects that fall under the definition of Section2 of the Coinage Act, 2011. This section defines a ‘coin’ as, “any coin which is made of any metal or any other material stamped by the Government or any other authority empowered by the Government in this behalf and which is a legal tender including commemorative coin and Government of India one rupee note.” It is to be noted that commemorative coins are not distributed ordinarily by the Reserve Bank of India and have to be separately purchased from the government authorities. Despite being collectors items, they are legal tender and can be used to make purchases within the sovereign borders of India. So counterfeiting these coins also falls under the ambit of this section.
  
  (3): The common definition of counterfeiting refers to replicating an original item, i.e., the counterfeit has to be an exact replica of the original. So if a person counterfeits a ₹ 100 stamp but modifies the value to ₹ 1,000, one can claim that they have not really counterfeited the original because while the insignia might be the same, the denominational value is different and hence is not a counterfeit. It is in anticipation of this defence that this section makes this clarification. Merely changing the denomination of the revenue stamp does not recuse the act from the definition of counterfeiting and any such act will be prosecuted to the full extent of the provisions of this section.
  
  (4) This explanation clears that for the purpose of this section, counterfeiting a coin does not just mean replicating an original to create a duplicate. It also includes modification of an original to make it seem duplicate. If it is proven that such an action was performed with the intention of deceiving someone and not accidentally, then the act shall be prosecuted to the full extent of the provisions of this section.
  
  (5) In continuation of the above, it further clarifies that counterfeiting will not just include modifying the appearance of the coin but also the elementary composition of the coin. Any such modifications made with the intention of deceiving someone will be prosecuted to the full extent of the provisions of this section.

Why Choose Vakilsearch for Bharatiya Nyaya Sanhita (BNS)?

Understanding the new Bharatiya Nyaya Sanhita (BNS) laws can be confusing, but Vakilsearch is here to make it easy for you. Here’s why we’re the right choice:

• Expert Help: Our lawyers know the BNS sections inside out and can guide you through how the new laws apply to you or your business.
• Simple and Clear: We break down all the legal jargons into simple language, so you can easily understand what steps to take.
• Personalised Service: Whether you need help with specific BNS sections for women or other legal concerns, we provide advice and support tailored to your situation.
• Experienced Team: We’ve helped thousands of clients understand about the old IPC sections, and now we’re ready to help you transition smoothly to the new BNS laws.