Describe the Offences relating to Counterfeiting of Currency Notes

Question: Describe the offences relating to counterfeiting of currency notes.

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Answer

The expression ‘currency notes’ is wide enough to include currency notes used by India and also those issued by other countries. In State of Kerala v. Mathai Verghese AIR 1987 SC 33, the Supreme Court held that the counterfeiting of currency notes not only of India but of foreign countries as well, constitutes an offence under section 489A, IPC.

The Supreme Court in the case M Mammutti v. State of Karnataka 1979 4 SCC 723, emphasized the basic test when considering a case of possession of counterfeit currency to see whether, at a casual glance, the currency note can be recognized as fake. The court stated that it must be shown that ‘the counterfeit notes were of such nature or description that a mere look at them would convince a person of average intelligence that it was a counterfeit note’

The provisions relating to counterfeiting of currency notes in the Indian Penal Code are as follow:

1. Section 489A deals with counterfeiting currency notes. This offence is punishable with life imprisonment for ten years and fine
2. 489B deals with using genuine or forged or counterfeit currency notes or banknotes, knowingly, doing this incurs a punishment of imprisonment up to ten years and fine
3. 489C deals with possession of forged or counterfeit currency notes or banknotes, this offence is punishable with seven years of imprisonment or fine or both
4. 489D deals with making or possessing an instrument or material for forging or counterfeiting currency notes or banknotes, this is punishable with ten years of imprisonment and a fine.
5. 489E deals with making or using documents resembling currency notes or banknotes, this is punishable with a fine up to Rs. 200/-.

Scope of Sections 489A to 489E, which lists five offences relating to currency-notes and bank-notes in Indian Penal Code 1860 are:

1. Counterfeiting currency notes or bank notes (imprisonment for life or imprisonment for 10 years and fine) (section 489A).
2. Selling, buying or using as genuine, forged or counterfeit currency -notes or banknotes, knowing the same to be forged or counterfeit (imprisonment for 10 years and fine) (section 489B).
3. Possession of forged or counterfeit currency notes or banknotes, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine (imprisonment for seven years or fine or both) (section 489C).
4. Making or possessing instruments or materials for forging or counterfeiting currency notes or bank notes (imprisonment for life or imprisonment for 10 years and fine) (section 489D).

1. 1. Making or using documents resembling currency notes or bank-notes (fine up to Rs 100);
   2. refusal by the person whose name appears on a document to disclose to a police officer, the name and address of the person by whom the document was printed or otherwise made (fine up to Rs 200) (section 489E).

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