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Section 181 falls under Chapter 10 of the Bharatiya Nyay Sanhita (BNS). Chapter 10 covers offences relating to coin, currency-notes, bank-notes, and government stamps. Each section under this chapter deals with different offences related to legal tender and revenue stamps. Section 181 specifically deals with the manufacture and possession of instruments and materials for making fake currency / stamps. Let us take a closer look at its provisions.

Definition of BNS Section 181

Section 181 of the Bharatiya Nyaya Sanhita (BNS), 2023 states:
“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.”

Explanation and Illustration of BNS Section 181

This section states that the unauthorised possession of certain objects or materials that are used in the process of manufacturing currency / stamps is prosecutable under section 181. These objects include

Items like currency and revenue stamps are the bloodline of an economy and governments go to extraordinary lengths to ensure that currency / stamps are created in a highly specialised and customised manner so as to ensure that such articles cannot be replicated. The materials with which these articles are made are made from restricted material and are not available for sale in the open market. Its vendors are registered and the inventory of their stock is closely monitored. Similarly, the machines that are used are designed and cast in a highly customised manner and not available for sale. They are made to order and their design kept highly confidential. The end product, however, which is the currency and the stamp, is available in the free market and can be easily used to reverse engineer the process of manufacturing. Possession of such equipment or material by an unauthorised person is illegal and constitutes an offence under section 181 of the BNS. The section specifically specifies:

Machinery - Such as printers with specific colour cartridges that are only used in dying currency notes.
Die - A specialised piece of metal tooling that is used to cut a specific shape out of a material. The one used for currencies is not for sale and cannot be ordered by anyone other than the government authorities.
Instrument - Any other part or specific machinery that is customised purely for minting currency or stamps.
Material - The currency notes and coins are made from very specific restricted materials that cannot be found in the open market. Coins are made from a specific metal alloy and currency from cotton. These materials in their customised specifications are not allowed to be sold in the open market.

If anyone has had any dealings with such materials then they are subject to the provisions of section 181. Section 181 also specifies the kind of dealings that are categorically prohibited. If someone:
makes or mends - referring to the act of manufacturing, modifying or repairing such prohibited equipment or material
performs any part of the process - referring to the act of using or deploying any such prohibited equipment or material
buys or sells or disposes - referring to trading in such prohibited equipment or material in exchange for remuneration. Further, it also adds that anyone in possession of such equipment disposes of it without notifying the authorities, will be considered as equal offenders under this section.

Further, the section adds one final criteria, which is the act of knowing. Anyone who is accused of any of the action above has to have participated in it knowingly without being coerced or deceived. Lack of knowledge or awareness of the crime recuses the act from the purview of this section.

Disclaimer: The examples provided are for educational purposes only and do not constitute legal advice. They should not be used for legal proceedings or decision-making. For specific legal matters, please consult a qualified legal professional.

Key points of BNS Section 181

This section deals with: Manufacturing and processing equipment for counterfeiting currency, bank notes and revenue stamps

Description of offence:

  • Any person found to manufacture or possess any kind of equipment or material that is used for the counterfeiting of currency, bank notes and revenue stamps shall be considered an offender under the provisions of this section.

  • Punishment for offence:
  • Imprisonment extending from ten years to life imprisonment along with fine.

  • Exceptions to offence:
  • The offender has been coerced into committing the offence
  • The person is a minor or not of sane mind
  • The counterfeit items are meant for demonstrative or dramatic representations and not meant for fraud.
    1. Differences Between Section 181 of BNS and its Equivalent IPC Section

      The BNS came into force on July 1, 2024, effectively replacing the Indian Penal Code. Section 181 of BNS replaces IPC Sections 233, 234, 235, 256, 257, & 489D. Let us look at the changes that have been made in the provisions of the new section in comparison to the old one.

      BNS Sections/SubsectionsSubjectIPC SectionsSummary of Comparison
      181Making or selling instrument for counterfeiting coin233Punitive provision has been increased. Section 233 of IPC prescribed up to 3 years in prison for the offence. Section 181 of BNS prescribes a sentence that can extend from 10 years to life. No change in provision for fine.
      181Making or selling instrument for counterfeiting Indian coin234The IPC had a separate provision for coins / notes / stamps issued by the Indian government. However, the BNS has one general clause for any coins / notes / stamps issued by any sovereign government that is in use as legal tender. Punitive provision has been increased. Section 234 of IPC prescribed up to 7 years in prison for the offence. Section 181 of BNS prescribes a sentence that can extend from 10 years to life. No change in provision for fine.
      181Possession of instrument or material for the purpose of using the same for counterfeiting coin235Punitive provision has been increased. Section 235 of IPC prescribed up to 3 years in prison for the offence. Section 181 of BNS prescribes a sentence that can extend from 10 years to life. No change in provision for fine.
      181Having possession of instrument or material for counterfeiting Government stamp256Punitive provision has been increased. Section 256 of IPC prescribed up to 7 years in prison for the offence. Section 181 of BNS prescribes a sentence that can extend from 10 years to life. No change in provision for fine.
      181Making or selling instrument for counterfeiting Government stamp257Punitive provision has been increased. Section 257 of IPC prescribed up to 7 years in prison for the offence. Section 181 of BNS prescribes a sentence that can extend from 10 years to life. No change in provision for fine.
      181Making or possessing instruments or materials for forging or counterfeiting currency notes or bank-notes489DNo change in provisions for offence.

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      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:

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      FAQs about Section 181 of the Bharatiya Nyaya Sanhita (BNS)

      Section 181 of the BNS addresses the possession of equipment or material used to counterfeit currency, bank notes or revenue stamps
      No. Section 181 only applied to use of counterfeit equipment or material knowingly. Not being aware of the nature or the material or equipment is not a crime.
      The punishment for making or possessing counterfeiting equipment is punishable with imprisonment for a term up to seven years along with a fine under the provisions of Section 181.
      No. Intent is crucial in determining if an action is a crime or not. If the intent for using a certain equipment is not to commit fraud or deceive any one, then it is not prosecutable as a crime
      Section 181 covers equipment used to counterfeit currency, bank notes and revenue stamps.
      Yes. Usually, if someone is coerced into committing a crime or is not of sane mind at the time of committing a crime or is a minor at the time of committing a crime, then they cannot be prosecuted under the BNS. Additionally, if a person can prove that they did not come into possession of such equipment knowingly or their possession of such equipment is not for fraudulent or deceptive purposes, then it is not a crime.
       section 181 of bns

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