Section 259 IPC: Having possession of counterfeit Government stamp

Indian Penal Code, 1860

Section 259 IPC at a Glance

Section 259 IPC deals with having possession of counterfeit Government stamp. It is 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 seven years.

Bailable โ“˜Cognizable โ“˜Non-Compoundable โ“˜๐Ÿ›๏ธ Magistrate of the first class โ“˜
BNS Equivalent

Section 180 โ†’

Section 259 IPC Bare Act Text

259. Having possession of counterfeit Government stamp

Whoever has in his possession any stamp which he knows to be a counterfeit of any stamp issued by Government for the purpose of revenue, intending to use, or dispose of the same as a genuine stamp, or in order that it may be used as a genuine stamp, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Source: Section 259, Indian Penal Code, 1860

Section 259 IPC in Simple Words

Section 259 of the Indian Penal Code (IPC) punishes having in possession any stamp known to be a counterfeit of any stamp issued by Government for the purpose of revenue, intending to use or dispose of it as genuine, or in order that it may be used as genuine.

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

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

Ingredients of Section 259 IPC

  • The accused had in his possession a stamp
  • The stamp was a counterfeit of a stamp issued by Government for the purpose of revenue
  • The accused knew the stamp to be counterfeit
  • The accused intended to use or dispose of the stamp as a genuine stamp, or in order that it may be used as a genuine stamp

Punishment Under Section 259 IPC

Imprisonment

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

Fine

The offender shall also be liable to fine.

Bailable โ“˜Cognizable โ“˜Non-Compoundable โ“˜๐Ÿ›๏ธ Magistrate of the first class โ“˜

Possessing a counterfeit Government stamp is punishable with imprisonment of either description for up to seven years, and the offender is also liable to fine.

Example of Section 259 IPC

In 2018, Sujata worked as a finance clerk at a transport company in Cuttack. She kept a pouch containing fifty fake notarial stamps locked inside her metal briefcase at the terminal office. Sujata knew that the stamps were counterfeits of stamps issued by the Government for the purpose of revenue. She kept them in her possession intending to use them on freight contracts as genuine stamps and to dispose of the rest so that they might be used as genuine stamps. Sujata is punishable under Section 259 IPC.

When Section 259 IPC Does Not Apply

  • Section 259 IPC does not apply when the counterfeit stamp was never in the custody or control of the accused.
  • The provision is not attracted if the item possessed was a genuine Government stamp or a decorative label that did not counterfeit a stamp issued by the Government for revenue.
  • A person who kept a fake revenue stamp in ignorance of its spurious character, without knowing it to be counterfeit, does not commit an offence under Section 259 IPC.
  • Possessing a known counterfeit Government revenue stamp solely as a specimen for an investigation or museum display, with no intention to use or dispose of it as genuine or enable its use as genuine, falls outside Section 259 IPC.

Section 259 IPC in the BNS

Section 259 IPC is now covered under Section 180 BNS.

Section 259 IPC penalized possessing any stamp known to be a counterfeit of a Government revenue stamp, with intention to use or dispose of it as genuine, prescribing imprisonment of either description for up to seven years and fine. Section 180 BNS consolidates possession of counterfeit Government stamps, coin, currency-notes, and bank-notes into a single offence. The maximum term of imprisonment remains seven years, but Section 180 BNS allows fine alone, in place of imprisonment, where Section 259 IPC required imprisonment. In addition, Section 180 BNS introduces an Explanation providing that establishing possession from a lawful source does not constitute an offence. Section 180 BNS also extends the mental element to having reason to believe the stamp is counterfeit, and it speaks only of an intention to use the stamp as genuine or that it may be used as genuine, without naming disposal.

View detailed comparison (IPC 259 vs BNS 180) โ†’

FAQs on Section 259 IPC

What does Section 259 IPC punish?โ–ผ

It punishes possessing any stamp known to be a counterfeit of any stamp issued by Government for the purpose of revenue, intending to use or dispose of it as genuine or in order that it may be used as genuine.

What is the punishment under Section 259 IPC?โ–ผ

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

Is intention to use or dispose as genuine required under Section 259 IPC?โ–ผ

Yes. Mere possession without the intention to use or dispose of the counterfeit stamp as genuine, or in order that it may be so used, does not constitute this offence.

How is the offence under Section 259 IPC covered under the Bharatiya Nyaya Sanhita, 2023?โ–ผ

Section 180 BNS absorbs Section 259 IPC into unified possession of counterfeit coin, stamps, and currency, maintaining the seven-year maximum term while adding an Explanation protecting lawful possession.

Is Section 259 IPC bailable?โ–ผ

Yes. The offence is bailable and cognizable under the First Schedule to the Code of Criminal Procedure.

Which court tries Section 259 IPC?โ–ผ

It is triable by a Magistrate of the first class.

Can an offence under Section 259 IPC be compounded?โ–ผ

No. Section 259 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 ยท Last updated: 16 Oct 2026 ยท