Section 254 IPC: Delivery of coin as genuine which, when first possessed, the deliverer did not know to be altered

Indian Penal Code, 1860

Section 254 IPC at a Glance

Section 254 IPC deals with delivery of coin as genuine which, when first possessed, the deliverer did not know to be altered. 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.

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

BNS Equivalent

Section 179 →

Section 254 IPC Bare Act Text

254. Delivery of coin as genuine which, when first possessed, the deliverer did not know to be altered
Whoever delivers to any other person as genuine or as a coin of a different description from what it is, or attempts to induce any person to receive as genuine, or as a different coin from what it is, any coin in respect of which he knows that any such operation as that mentioned in sections 246, 247, 248 or 249 has been performed, but in respect of which he did not, at the time when he took it into his possession, know that such operation had been performed, 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 for which the altered coin is passed, or attempted to be passed.

Source: Section 254, Indian Penal Code, 1860

Section 254 IPC in Simple Words

Section 254 of the Indian Penal Code (IPC) punishes delivering as genuine or as a coin of a different description, or attempting to induce any person so to receive, any coin altered under Section 246, 247, 248, or 249 IPC, where the deliverer knows of the alteration at the time of delivery but did not know of it when first taking the coin into possession.

The punishment is imprisonment of either description for up to two years, or fine up to ten times the value of the coin for which the altered coin is passed or attempted to be passed.

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

Ingredients of Section 254 IPC

The coin was one on which an operation mentioned in Section 246, 247, 248, or 249 IPC had been performed
The accused did not know that such operation had been performed at the time when he took the coin into his possession
The accused subsequently knew that such operation had been performed with respect to the coin
The accused delivered the coin to another person as genuine or as a coin of a different description, or attempted to induce another person to receive it as genuine or as a different coin

Punishment Under Section 254 IPC

Imprisonment

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

Fine

Fine which may extend to ten times the value of the coin for which the altered coin is passed or attempted to be passed, as an alternative to imprisonment.

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

Delivering altered coin as genuine, when the deliverer did not know of the alteration on first possessing it, 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 for which the altered coin is passed or attempted to be passed.

Example of Section 254 IPC

In 2021, Rekha accepted an Indian two-rupee coin from a customer at her bakery in Dehradun, believing it to be an Indian ten-rupee coin and not knowing when she took possession of it that someone had gilded and re-stamped it under Section 249 IPC. The next morning, her brother examined the coin and showed her that its appearance had been unlawfully altered. Knowing of this operation, Rekha later handed the altered coin to a milkman, Govind, as a genuine ten-rupee coin. Rekha is punishable under Section 254 IPC.

When Section 254 IPC Does Not Apply

Section 254 IPC does not apply when the coin has not undergone any altering operation described in Section 246, 247, 248, or 249 IPC.
Section 254 IPC does not apply when the person already knew at the moment of acquiring the coin that it had been altered, as that conduct is governed by Section 250 IPC or Section 251 IPC.
Section 254 IPC does not apply when the person remains unaware of the alteration even at the time of passing the coin to someone else.
Section 254 IPC does not apply when the person keeps the altered coin after discovering the tampering and neither delivers it nor tries to persuade anyone to take it as genuine or as a different coin.

Section 254 IPC in the BNS

Section 254 IPC is now covered under Section 179 BNS.

Section 254 IPC was a separate, milder offence for delivering as genuine an altered coin where the deliverer did not know of the alteration when first taking possession, punishing the act with imprisonment of either description for up to two years, or with fine up to ten times the value of the coin passed or attempted to be passed. Section 179 BNS absorbs this delivery into a consolidated provision covering importing, exporting, trafficking, selling, delivering, buying, receiving, and using as genuine forged or counterfeit coin, Government stamps, currency-notes, and bank-notes. Section 179 BNS contains no corresponding milder category. An altered coin falls under Section 179 BNS because clause (5) of the Explanation to Section 178 BNS treats alteration as counterfeiting. Section 179 BNS drops elements and limbs: it 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 punishment increases from up to two years imprisonment, or fine in the alternative, under Section 254 IPC to imprisonment for life, or imprisonment of either description for up to ten years, and fine under Section 179 BNS.

View detailed comparison (IPC 254 vs BNS 179) →

FAQs on Section 254 IPC

What did Section 254 IPC provide?▼

It punished delivering as genuine an altered coin by a person who discovered the alteration only after taking possession, with imprisonment for up to two years, or fine up to ten times the value of the coin.

Why was Section 254 IPC considered a milder offence?▼

Like Section 241 IPC, Section 254 IPC was a separate, milder offence for a person who did not know the coin was altered when he first took it into his possession, punishing him far less severely than a person who acquired it with prior knowledge.

Section 254 IPC: does the Bharatiya Nyaya Sanhita retain this milder offence?▼

No. Section 179 BNS provides no separate mitigated provision for coin acquired without initial knowledge. All delivery and trafficking of counterfeit coin are punished under the same unified provision with imprisonment for life or up to ten years and fine.

Does Section 179 BNS include an attempt to induce limb?▼

No. Section 179 BNS drops the limb for attempting to induce a person to receive the coin and does not require that the act be done fraudulently or with intent that fraud may be committed.

Is Section 254 IPC bailable?▼

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

Which court tries Section 254 IPC?▼

It is triable by any Magistrate.

Can Section 254 IPC be compounded?▼

No. Section 254 IPC is not compoundable under Section 320 CrPC.

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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 ·