Section 241 IPC: Delivery of coin as genuine, which, when first possessed, the deliverer did not know to be counterfeit

Indian Penal Code, 1860

Section 241 IPC at a Glance

Section 241 IPC deals with delivery of coin as genuine, which, when first possessed, the deliverer did not know to be counterfeit. It is non-bailable and cognizable, triable by any Magistrate; from 1 July 2024 it is replaced by Section 179 BNS.

Punishment

Imprisonment of either description for a term which may extend to two years, or fine, or both.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Any Magistrate ⓘ

BNS Equivalent

Section 179 →

Section 241 IPC Bare Act Text

241. Delivery of coin as genuine, which, when first possessed, the deliverer did not know to be counterfeit
Whoever delivers to any other person as genuine, or attempts to induce any other person to receive as genuine, any counterfeit coin which he knows to be counterfeit, but which he did not know to be counterfeit at the time when he took it into his possession, shall be punished with imprisonment of either description for a term which may extend to two years, or with fine to an amount which may extend to ten times the value of the coin counterfeited, or with both.
Illustration
A, a coiner, delivers counterfeit Company's rupees to his accomplice B, for the purpose of uttering them. B sells the rupees to C, another utterer, who buys them knowing them to be counterfeit. C pays away the rupees for goods to D, who receives them, not knowing them to be counterfeit. D, after receiving the rupees, discovers that they are counterfeit and pays them away as if they were good. Here D is punishable only under this section, but B and C are punishable under section 239 or 240, as the case may be.

Source: Section 241, Indian Penal Code, 1860

Section 241 IPC in Simple Words

Section 241 of the Indian Penal Code (IPC) punishes delivering any counterfeit coin as genuine, or attempting to induce another person to receive it as genuine, knowing the coin to be counterfeit, where the deliverer did not know it was counterfeit when taking it into possession.

The punishment is imprisonment of either description for up to two years, or fine up to ten times the value of the counterfeit coin, or both.

The offence is cognizable, non-bailable, and triable by any Magistrate.

Ingredients of Section 241 IPC

Delivering any counterfeit coin to any other person as genuine, or attempting to induce any other person to receive it as genuine
Knowing the coin to be counterfeit at the time of delivery
Not knowing the coin to be counterfeit at the time when he took it into his possession

Punishment Under Section 241 IPC

Imprisonment

Imprisonment of either description for a term which may extend to two years, or fine, or both.

Fine

Fine which may extend to ten times the value of the coin counterfeited, alone or with imprisonment.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Any Magistrate ⓘ

Delivering as genuine a counterfeit coin which the deliverer did not know to be counterfeit when first possessed is punishable with imprisonment of either description for up to two years, or with fine of up to ten times the value of the coin counterfeited, or with both.

Example of Section 241 IPC

In 2019, Arvind, a tailor in Mysuru, received a counterfeit two-rupee coin from a client paying for garment stitching, not knowing at the time he took the coin into his possession that it was counterfeit. Later that night, his neighbour examined the coin under a lamp and pointed out that it was counterfeit. The following day, knowing the coin to be counterfeit, Arvind delivered it to a cloth supplier as a genuine coin while settling his bill. Because he did not know the coin was counterfeit when he first took possession of it, Arvind is punishable under Section 241 IPC.

When Section 241 IPC Does Not Apply

Section 241 IPC does not apply when the person already knew that the coin was counterfeit at the moment he first took it into his possession.
Section 241 IPC does not apply if the coin handed over to the other person is genuine rather than counterfeit.
Section 241 IPC does not apply where the person passing the coin still does not know at the time of delivery that the coin is counterfeit.
Section 241 IPC does not apply if the holder merely keeps the counterfeit coin after discovering its nature and neither delivers it as genuine nor attempts to induce anyone to accept it as genuine.

Section 241 IPC in the BNS

Section 241 IPC is now covered under Section 179 BNS.

Section 241 IPC is absorbed into Section 179 BNS, which eliminates the separate mitigated category for a person who acquired counterfeit coin innocently before uttering it. Under Section 179 BNS, any person who delivers, traffics in, or uses as genuine counterfeit coin, Government stamps, currency-notes, or bank-notes, knowing or having reason to believe the item to be counterfeit, is subject to the same penalty. Section 179 BNS also has no separate limb for attempting to induce a person to receive the coin as genuine. The punishment increases from up to two years imprisonment or fine up to ten times coin value under Section 241 IPC to imprisonment for life, or imprisonment for up to ten years, and fine under Section 179 BNS.

View detailed comparison (IPC 241 vs BNS 179) →

FAQs on Section 241 IPC

What does Section 241 IPC punish?▼

It punishes delivering counterfeit coin as genuine, or attempting to induce someone to receive it as genuine, knowing it is counterfeit, when the deliverer did not know it was counterfeit at the time of taking possession.

What is the punishment under Section 241 IPC?▼

Imprisonment of either description for a term which may extend to two years, or with fine up to ten times the value of the coin counterfeited, or with both.

Could a person be punished with fine alone under Section 241 IPC?▼

Yes. Section 241 IPC allowed fine up to ten times the value of the coin as an alternative to imprisonment.

Is Section 241 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 241 IPC?▼

It is triable by any Magistrate.

Can an offence under Section 241 IPC be compounded?▼

No. Section 241 IPC is not compoundable under Section 320 CrPC.

Section 241 IPC: does the Bharatiya Nyaya Sanhita keep a separate mitigated offence for subsequent uttering?▼

No. Section 179 BNS removes this distinction and subjects all knowing delivery of counterfeit coin to the unified punishment of imprisonment for life or up to ten years, and fine.

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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 ·