Section 242 IPC: Possession of counterfeit coin by person who knew it to be counterfeit when he became possessed thereof

Indian Penal Code, 1860

Section 242 IPC at a Glance

Section 242 IPC deals with possession of counterfeit coin by person who knew it to be counterfeit when he became possessed thereof. It is non-bailable and cognizable, triable by Magistrate of the first class; from 1 July 2024 it is replaced by Section 180 BNS.

Punishment

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

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Magistrate of the first class ⓘ

BNS Equivalent

Section 180 →

Section 242 IPC Bare Act Text

242. Possession of counterfeit coin by person who knew it to be counterfeit when he became possessed thereof
Whoever, fraudulently or with intent that fraud may be committed, is in possession of counterfeit coin, having known at the time when he became possessed thereof that such coin was counterfeit, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.

Source: Section 242, Indian Penal Code, 1860

Section 242 IPC in Simple Words

Section 242 of the Indian Penal Code (IPC) punishes possession of counterfeit coin where the person knew the coin was counterfeit when becoming possessed of it, and holds possession fraudulently or with intent that fraud may be committed.

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

Under the First Schedule to the Code of Criminal Procedure, the offence is cognizable, non-bailable, and triable by a Magistrate of the first class.

Ingredients of Section 242 IPC

Being in possession of counterfeit coin
Knowing at the time when he became possessed of it that the coin was counterfeit
Holding such possession fraudulently or with intent that fraud may be committed

Punishment Under Section 242 IPC

Imprisonment

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

Fine

The offender shall also be liable to fine.

Non-Bailable ⓘCognizable ⓘNon-Compoundable ⓘ🏛️ Magistrate of the first class ⓘ

Possessing counterfeit coin known to be counterfeit when it was obtained is punishable with imprisonment of either description for up to three years, and the offender is also liable to fine.

Example of Section 242 IPC

In 2018, Deepak, a lodge clerk in Dehradun, bought twenty counterfeit foreign coins from an acquaintance, knowing at the time when he became possessed of the coins that they were counterfeit. He kept the counterfeit coins inside his wooden trunk with the intention that fraud might be committed by giving them to foreign travellers in exchange transactions as genuine coins. Because he was in possession of counterfeit coins with intent that fraud may be committed, having known when he acquired them that they were counterfeit, Deepak is punishable under Section 242 IPC.

When Section 242 IPC Does Not Apply

Section 242 IPC does not apply if the holder was unaware that the coin was counterfeit at the time he first came into possession of it.
Section 242 IPC does not apply when the coin held by the person is genuine and not counterfeit.
Section 242 IPC does not apply where the accused does not have possession of the counterfeit coin.
Section 242 IPC does not apply if the person retains the counterfeit coin honestly, such as for turning it over to the police, without acting fraudulently or intending that fraud be committed.

Section 242 IPC in the BNS

Section 242 IPC is now covered under Section 180 BNS.

Section 242 IPC is merged into Section 180 BNS, which consolidates possession of forged or counterfeit coin, Government stamps, currency-notes, and bank-notes into a single section. Section 180 BNS requires that the person possess the item knowing or having reason to believe it to be counterfeit and intending to use it as genuine or that it may be used as genuine. It drops the requirement that knowledge existed at the moment of initial acquisition, and the intent to use the item as genuine takes the place of possession held fraudulently or with intent that fraud may be committed. Section 180 BNS adds an Explanation exempting possession established to be from a lawful source. The punishment shifts from imprisonment for up to three years and fine under Section 242 IPC to imprisonment for up to seven years, or with fine, or with both under Section 180 BNS.

View detailed comparison (IPC 242 vs BNS 180) →

FAQs on Section 242 IPC

What does Section 242 IPC punish?▼

It punishes fraudulently possessing counterfeit coin, having known at the time of becoming possessed of it that the coin was counterfeit.

What is the punishment under Section 242 IPC?▼

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

Did Section 242 IPC require proof of knowledge when the coin was received?▼

Yes. The section specifically required that the person knew the coin was counterfeit at the time when he became possessed of it.

Is Section 242 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 242 IPC?▼

It is triable by a Magistrate of the first class.

Can an offence under Section 242 IPC be compounded?▼

No. Section 242 IPC is not compoundable under Section 320 CrPC.

Where is Section 242 IPC placed in the Bharatiya Nyaya Sanhita?▼

It is consolidated into Section 180 BNS, which covers possession of counterfeit coin, Government stamps, and currency.

Have questions about Section 242 IPC?

Ask NyayGuru for a plain language explanation, punishment details, or how it applies to your situation.

Ask NyayGuru →

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 ·