Section 240 IPC: Delivery of Indian coin, possessed with knowledge that it is counterfeit

Indian Penal Code, 1860

Section 240 IPC at a Glance

Section 240 IPC deals with delivery of Indian coin, possessed with knowledge that it is counterfeit. It is non-bailable and cognizable, triable by the Court of Session; from 1 July 2024 it is replaced by Section 179 BNS.

Punishment

Imprisonment of either description for a term which may extend to ten years.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Court of Session ⓘ
BNS Equivalent

Section 179 →

Section 240 IPC Bare Act Text

240. Delivery of Indian coin, possessed with knowledge that it is counterfeit

Whoever, having any counterfeit coin which is a counterfeit of Indian coin, and which, at the time when he became possessed of it, he knew to be a counterfeit of Indian coin, fraudulently or with intent that fraud may be committed, delivers the same to any person, or attempts to induce any person to receive it, 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 240, Indian Penal Code, 1860

Section 240 IPC in Simple Words

Section 240 of the Indian Penal Code (IPC) punishes delivering counterfeit Indian coin, or attempting to induce any person to receive it, where the deliverer knew the coin was a counterfeit of Indian coin at the time of becoming possessed of it, and acts fraudulently or with intent that fraud may be committed.

The punishment is imprisonment of either description for up to ten years, and fine.

Under the First Schedule to the Code of Criminal Procedure, the offence is cognizable, non-bailable, and triable by the Court of Session.

Ingredients of Section 240 IPC

  • Having possession of any counterfeit coin that is a counterfeit of Indian coin
  • Knowing that the coin was a counterfeit of Indian coin at the time when he became possessed of it
  • Acting fraudulently or with intent that fraud may be committed
  • Delivering the coin to any person, or attempting to induce any person to receive it

Punishment Under Section 240 IPC

Imprisonment

Imprisonment of either description for a term which may extend to ten years.

Fine

The offender shall also be liable to fine.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Court of Session ⓘ

Delivering Indian coin possessed with knowledge that it is counterfeit is punishable with imprisonment of either description for up to ten years, and the offender is also liable to fine.

Example of Section 240 IPC

In 2023, Gautam obtained a roll of twenty fake Indian ten-rupee coins in Bhopal from a counterfeiter, knowing at the time he took possession of them that they were counterfeits of Indian coin. The following week, Gautam went to a cloth store in Bhopal and fraudulently delivered those fake coins to the weaver, Mahesh, to pay for a cotton kurta, intending that fraud be committed. Because Gautam knew the coins were counterfeits of Indian coin when he acquired them and fraudulently delivered them, Gautam is punishable under Section 240 IPC.

When Section 240 IPC Does Not Apply

  • Section 240 IPC does not apply when the counterfeit coin delivered is an imitation of a foreign coin rather than Indian coin.
  • Section 240 IPC does not apply when the person was unaware that the coin was a counterfeit of Indian coin at the time he first came into possession of it.
  • Section 240 IPC does not apply when the person neither delivered the counterfeit Indian coin to anyone nor tried to persuade anyone to accept it.
  • Section 240 IPC does not apply when the counterfeit Indian coin was handed over without fraud and without any intent that fraud may be committed.

Section 240 IPC in the BNS

Section 240 IPC is now covered under Section 179 BNS.

Section 240 IPC is merged into Section 179 BNS, which consolidates delivery, sale, purchase, receipt, trafficking, and use of forged or counterfeit coin, Government stamps, currency-notes, and bank-notes into a single section. Section 179 BNS removes the separate Indian coin category and omits the requirement of proving knowledge at the time of initial possession. Section 179 BNS has no separate limb for attempting to induce a person to receive the coin, and it does not require that the act be done fraudulently or with intent that fraud may be committed. The maximum punishment rises from ten years imprisonment under Section 240 IPC to imprisonment for life, or imprisonment for up to ten years, under Section 179 BNS, and fine.

View detailed comparison (IPC 240 vs BNS 179) →

FAQs on Section 240 IPC

What does Section 240 IPC punish?▼

It punishes fraudulently delivering counterfeit Indian coin, or attempting to induce another to receive it, knowing that it was a counterfeit of Indian coin at the time of becoming possessed of it.

What is the punishment under Section 240 IPC?▼

Imprisonment of either description for a term which may extend to ten years, and fine.

How did Section 240 IPC differ from Section 239 IPC?▼

Section 239 IPC applied to any counterfeit coin and carried imprisonment for up to five years, whereas Section 240 IPC applied specifically to Indian coin and carried imprisonment for up to ten years.

Is Section 240 IPC bailable?▼

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 240 IPC?▼

It is triable by the Court of Session.

Can an offence under Section 240 IPC be compounded?▼

No. Section 240 IPC is not compoundable under Section 320 CrPC.

Where is Section 240 IPC placed in the Bharatiya Nyaya Sanhita?▼

It is merged into Section 179 BNS, which eliminates the separate classification of Indian coin.

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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 · Last updated: 16 Oct 2026 ·