Section 235 IPC: Possession of instrument or material for the purpose of using the same for counterfeiting coin

Indian Penal Code, 1860

Section 235 IPC at a Glance

Section 235 IPC deals with possession of instrument or material for the purpose of using the same for counterfeiting coin. It is non-bailable and cognizable; from 1 July 2024 it is replaced by Section 181 BNS.

Punishment

Imprisonment of either description for a term which may extend to three years. If the coin to be counterfeited is Indian coin, imprisonment of either description for a term which may extend to ten years.

Non-Bailable β“˜Cognizable β“˜Non-Compoundable β“˜πŸ›οΈ Magistrate of the first class for coin; Court of Session if Indian coin β“˜
BNS Equivalent

Section 181 β†’

Section 235 IPC Bare Act Text

235. Possession of instrument or material for the purpose of using the same for counterfeiting coin

Whoever is in possession of any instrument or material, for the purpose of using the same for counterfeiting coin, or knowing or having reason to believe that the same is intended to be used for that purpose, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine;

if Indian coin.β€”and if the coin to be counterfeited is Indian coin, shall be punished with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.

Source: Section 235, Indian Penal Code, 1860

Section 235 IPC in Simple Words

Section 235 of the Indian Penal Code (IPC) punishes possession of any instrument or material for counterfeiting coin. It applies where possession is held for the purpose of using the same for counterfeiting coin, or with knowledge or reason to believe that it is intended to be used for that purpose.

The punishment is imprisonment of either description for up to three years and fine, or up to ten years and fine if the coin is Indian coin. The offence is cognizable and non-bailable, triable by a Magistrate of the first class for coin, or by the Court of Session if Indian coin.

Ingredients of Section 235 IPC

  • Possession of any instrument or material
  • Holding such possession for the purpose of using the instrument or material for counterfeiting coin, or knowing or having reason to believe that it is intended to be used for that purpose

Punishment Under Section 235 IPC

Imprisonment

Imprisonment of either description for a term which may extend to three years. If the coin to be counterfeited is Indian coin, imprisonment of either description for a term which may extend to ten years.

Fine

The offender shall also be liable to fine in either case.

Non-Bailable β“˜Cognizable β“˜Non-Compoundable β“˜πŸ›οΈ Magistrate of the first class for coin; Court of Session if Indian coin β“˜

Possessing an instrument or material for counterfeiting coin is punishable with imprisonment of either description for up to three years, and up to ten years if the coin is Indian coin. In either case the offender is also liable to fine.

Example of Section 235 IPC

In 2021, customs officers inspected a locked storeroom in Surat rented by Nikhil. Inside a wooden trunk, Nikhil kept nickel-brass alloy sheets and an electric pressing machine for the purpose of using those materials and that instrument to manufacture counterfeit Indian two-rupee coins. Nikhil was in conscious possession of both the material and the instrument with the purpose of using them for counterfeiting Indian coin. Even though he had not yet begun pressing any coins, Nikhil is punishable under Section 235 IPC.

When Section 235 IPC Does Not Apply

  • Section 235 IPC does not apply when the accused did not have possession or control of the instrument or material.
  • Section 235 IPC does not apply when the object found is neither an instrument nor material capable of being used to counterfeit coin.
  • Section 235 IPC does not apply when the person held the instrument or material for legitimate craft or trade without any purpose, knowledge, or reason to believe that it would be used for counterfeiting coin.
  • The enhanced ten-year punishment under Section 235 IPC does not apply when the coin intended to be counterfeited is foreign coin rather than Indian coin.

Section 235 IPC in the BNS

Section 235 IPC is now covered under Section 181 BNS.

Section 235 IPC is merged into Section 181 BNS, which consolidates making, mending, buying, selling, disposing of, and possessing machinery, dies, instruments, or materials for forging or counterfeiting coin, Government stamps, currency-notes, and bank-notes. The separate classification of Indian coin is omitted in Section 181 BNS. The punishment changes from three years for coin and ten years for Indian coin under Section 235 IPC to imprisonment for life, or imprisonment for up to ten years, and fine under Section 181 BNS.

View detailed comparison (IPC 235 vs BNS 181) β†’

FAQs on Section 235 IPC

What does Section 235 IPC punish?β–Ό

It punishes being in possession of any instrument or material for the purpose of using it for counterfeiting coin, or knowing or having reason to believe it is intended to be used for that purpose.

What is the punishment under Section 235 IPC?β–Ό

Imprisonment of either description for up to three years and fine, or imprisonment of either description for up to ten years and fine if the coin is Indian coin.

Does Section 235 IPC apply if no counterfeit coin was produced?β–Ό

Yes. Possession of the instrument or material with the requisite purpose or knowledge completes the offence under Section 235 IPC.

Is Section 235 IPC bailable?β–Ό

No. The offence is non-bailable and cognizable under the First Schedule to the Code of Criminal Procedure.

Which court tries an offence under Section 235 IPC?β–Ό

It is triable by a Magistrate of the first class if the coin is not Indian coin, and by the Court of Session if it is Indian coin.

Can an offence under Section 235 IPC be compounded?β–Ό

No. Section 235 IPC is not compoundable under Section 320 CrPC.

Where is Section 235 IPC placed in the Bharatiya Nyaya Sanhita?β–Ό

It is merged into Section 181 BNS, which covers instruments and materials for coin, stamps, and currency.

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Disclaimer: This is for informational purposes only. Always consult a qualified advocate for legal advice.

Sources: Bare Act Text, Indian Penal Code, 1860 Β· Last updated: 16 Oct 2026 Β·