Law of Crimes II

Of OFFENCES
RELATING TO

CURRENCY-NOTES
AND

BANK-NOTES
PROJECT WORK SUBMITTED FOR INTERNAL ASSESSMENT

Prior to 1899, the offences relating to currency notes and bank notes were governed by the provisions dealing with forgery of valuable securities (s. 467) and making or possessing counterfeit currency seals, plates (s. 472). These sections proved less effective for securing convictions for counterfeiting or possessing counterfeit currency notes as well as for making or possessing instruments for counterfeiting currency notes. In order to protect the currency notes and bank notes from forgery sections 489 A to 489 D were added to the IPC by the Currency Notes Forgery Act 1899 and section 489 E was added to the IPC by the Indian Penal Code (Amendment) Act 1943, for prohibiting and penalizing the acts of bringing in circulation photo-prints or otherwise printed or reproduced or imitated currency-notes or bank-notes. The s. 28 of IPC defines Counterfeiting as an act which causes one thing to resemble another, intending by means of that resemblance to deceive. The three conditions that are required as mentioned under this definition are: i. ii. iii. Causing one thing to resemble another; Intending by means of that resemblance to cause deception, and Knowing it to be likely that deception will be thereby practiced.

The Supreme Court, in M. Mammutti v. State of Karnataka, emphasised that the basic test to prove counterfeit currency is to see whether even an ordinary person would by a mere glance be fooled by the note fraudulently made.

Scope of sections 489 A to 489 E

The sections 489 A to 489 E in the IPC are arranged on the following basis: 1. S. 489 A describes the offence of Counterfeiting currency-notes and bank-notes (imprisonment for life or imprisonment for 10 years and fine) 2. S. 489 B deals with selling, buying or using as genuine, forged or counterfeit currency-notes or bank-notes, knowing the same to be forged or counterfeit (imprisonment for 10 years and fine) 3. S. 489 C deals with possession of forged or counterfeit currency-notes or bank-notes, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine (imprisonment for 7 years or fine or both) 4. S. 489 D deals with the 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) 5. i. ii. Making or using documents resembling currency-notes or banknotes (fine up to Rs. 100). 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). In State of Kerala v. Mathai verghese, the Supreme Court held that the counterfeiting of currency-notes not only of India but of foreign countries as well, constitute offence under s. 489 A, IPC. The expression

currency-note in s. 489, IPC is wide enough to embrace currency notes issued by India as also those issued by any other country in the world.

Sections relating to the offence under the Indian Penal Code

489A. Counterfeiting currency-notes or bank-notes Whoever counterfeits, or knowingly performs any part of the process of counterfeiting, any 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 purpose of this section and of sections 489B, [489C, 489D and 489E], 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. CLASSIFICATION OF OFFENCE Punishment - Imprisonment for life or imprisonment for a term of 10 years and fine Cognizable, Non-bailable and Triable by Court of Session, Non-compoundable

489B. Using as genuine, forged or counterfeit currency-notes or banknotes Whoever sells to, or buys or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or banknote, knowing or having reason to believe the same to be forged or counterfeit, 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. CLASSIFICATION OF OFFENCE Punishment - Imprisonment for life or imprisonment for a term of 10 years and fine Cognizable, Non-bailable and Triable by Court of Session, Non-compoundable

489C. Possession of forged or counterfeit currency-notes or bank-notes Whoever has in his possession any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven years, or with fine, or with both. CLASSIFICATION OF OFFENCE Punishment - Imprisonment for a term of 7 years, or fine, or both Cognizable, Bailable and Triable by Court of Session, Non-compoundable

489D. Making or possession instruments or materials for forging or counterfeiting currency-notes or bank-notes Whoever makes, or performs, any part of the process of making, or buys or sells or disposes of, or has in his possession, any machinery, 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 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. CLASSIFICATION OF OFFENCE Punishment - Imprisonment for life or imprisonment for a term of 10 years and fine Cognizable, Non-bailable and Triable by Court of Session, Non-compoundable

489E. Making or using documents resembling currency-notes or banknotes (1) Whoever makes, or causes to be made, or uses for any purpose whatsoever, or delivers to any person, any document purporting to be, or in any way resembling, or so nearly resembling as to be calculated to deceive any currency-note or bank-note shall be punished with fine which may extend to one hundred rupees.

(2) If any person, whose name appears on a document the making of which is an offence under sub-section (1). Refuses, without lawful excuse, to disclose to a police-officer on being so required the name and address of the person by whom it was printed or otherwise made, he shall be punished with fine which may extend to two hundred rupees.

(3) Where the name of any person appears on any document in respect of which any person is charged with an offence under sub-section (1) or on any other document used or distributed in connection with that document it any, until the contrary is proved, be presumed that person caused the document to be made. CLASSIFICATION OF OFFENCE Punishment - Fine of 100 rupees, Non-Cognizable, Bailable and Triable by any Magistrate, Non-compoundable.