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Introduction of BNS 180

The fight against counterfeit money and forged government instruments does not stop at makers or distributors; it also targets those who knowingly keep counterfeit items with the intent to use them. To address this, Section 180 of the Bharatiya Nyaya Sanhita (BNS), 2023 criminalises the possession of forged or counterfeit coins, government stamps, currency notes, or banknotes when the person knows, or has reason to believe, that they are not genuine.

This provision ensures that counterfeit items are not circulated further, even by individuals who may try to pass them on in daily transactions. By prescribing up to 7 years of imprisonment and fine, the law discourages possession of fake currency or stamps and helps maintain public trust in the monetary and administrative systems.

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The Bharatiya Nyaya Sanhita (BNS) Section 180 replaces the old Indian Penal Code (IPC) Section 489-C.

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What is BNS Section 180 ?

BNS Section 180 makes it an offense to possess any counterfeit or forged coin, government stamp, currency-note, or bank-note with the knowledge or reasonable suspicion that the item is counterfeit. The individual must also have the intent to use the counterfeit item as if it were genuine or to enable its use as a genuine item.

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Under Section 180 of the bns act 2023

Whoever is in possession of any forged or counterfeit coin, Government stamp, currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, and intending to use the same as genuine or that it may be used as genuine, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

Explanation of Section 180

Section 180 does not only punish those who make or circulate counterfeit money or stamps, but also those who keep them knowingly with the intent to use or enable their use. The law recognises that possession is a crucial step in spreading counterfeit items, so anyone found holding them with dishonest intent is considered guilty.

The section requires two main elements:

1. Possession – The accused must have counterfeit items in their custody or control.
2. Knowledge + Intention – They must know or have reason to believe the items are fake and still intend to use them or allow their use as genuine.

Examples of BNS Section 180 in Action

1. Possession as the Offence
   • Simply holding counterfeit coins, stamps, or notes is not enough. The possession becomes an offence only if there is knowledge of their false nature and an intention to use them as genuine.
2. Knowledge or Reason to Believe
   • The person must either actually know or at least have strong reason to believe that the items are counterfeit.
   • Example: If the notes are clearly of poor print quality and the person still keeps them, it counts as “reason to believe.”
3. Intention to Use as Genuine
   • Intention is critical. If the counterfeit items are kept to be passed off as genuine in transactions, the offence is complete.
   • Even if the person has not yet used them, mere intent is enough.
4. Scope of Items Covered
   • This section covers all major forms of government-issued monetary instruments:
     • Coins
     • Government stamps (used in legal/official documents)
     • Currency notes
     • Bank-notes
5. Lawful Possession Exception
   • If someone possesses counterfeit items lawfully, for example, for the purpose of reporting to authorities or as evidence, it is not a crime.
   • The burden lies on the accused to prove such lawful possession.

• As the offence is serious, it is tried in the Court of Session, ensuring stricter judicial oversight.

Examples of BNS Section 180 in Action

Example 1 – Passing on Fake Currency
A shopkeeper realises a ₹500 note he received is counterfeit. Instead of reporting it, he keeps it and later uses it to pay a wholesaler. Since he knowingly possessed and used it as genuine, he is guilty under Section 180.

Example 2 – Counterfeit Stamp in Property Deal
A buyer purchases a fake government stamp for property registration, knowing it is counterfeit but using it to save money. This possession and use amount to an offence under Section 180.

Example 3 – Collector of Counterfeits
A person claims to collect fake notes “just for fun,” but cannot prove any lawful reason for keeping them. If he intended to pass them on as genuine, he would be guilty under this section.

Why Section 180 is Important

• Closes the Gap → Prevents counterfeit from being circulated by penalising possession itself.
• Protects Economy → Stops counterfeit notes, coins, and stamps from entering the market.
• Strengthens Trust → Ensures people can rely on the genuineness of money and stamps.
• Supports Enforcement → Complements Sections 178 and 179 by targeting another stage of the counterfeit cycle.

Punishment under BNS 180

• Imprisonment: Up to 7 years.
• Fine: In addition to or instead of imprisonment.

Offence Classification under BNS 180

• Cognizable → Police can arrest without warrant.
• Non-bailable → Bail is not a right; subject to court’s discretion.
• Non-compoundable → Cannot be settled privately.
• Trial Court → Court of Session.

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Section 180 BNS Overview

180 addresses the offense of possessing forged or counterfeit coins, government stamps, currency-notes, or banknotes with the intention of using them as genuine. This section is crucial for maintaining the integrity of the currency system and punishing those who knowingly hold counterfeit items. Here are 10 key points that explain this section in detail:

BNS SECTION 180 :10 Key Points

1. Offense of Possession

• What it covers: BNS Section 180 specifically applies to individuals who possess counterfeit or forged items such as coins, government stamps, currency-notes, or banknotes. The possession itself, if done knowingly, is considered a crime.
• Importance: This section ensures that people who come into contact with counterfeit items, whether by accident or on purpose, are held accountable if they intend to use these items as genuine.

2. Knowing or Having Reason to Believe

• Explanation: To be prosecuted under this section, the individual must either know or have reason to believe that the items in their possession are counterfeit.
• Detail: If someone unintentionally receives a counterfeit note and is unaware of its nature, they are not liable. However, if there are clear signs that the items are forged (such as poor quality or incorrect designs) and the person still holds them, they may be charged.

3. Intention to Use as Genuine

• What it means: The individual must have the intention to use the counterfeit items as if they were genuine, or they must intend to enable others to use them as genuine.
• Example: If a person knowingly holds counterfeit currency and plans to use it in a transaction, this is enough to prove intent, making them liable under the law.

4. Scope of the Counterfeit Items

• Covered items: This section covers forged or counterfeit coins, government stamps, currency-notes, and banknotes.
• Relevance: The broad scope ensures that all forms of currency and stamps are protected, covering both traditional coins and modern banknotes.

5. Punishment for the Offense

Imprisonment: If found guilty, the person may face imprisonment for up to seven years.

• Fine: In addition to imprisonment, they may also be fined, or both penalties may be applied simultaneously.
• Details: The severity of the punishment depends on the circumstances of the case, such as the amount of counterfeit currency and the intent behind possessing it.

6. Legal Defense for Lawful Possession

• What it provides: If a person can prove that their possession of the counterfeit items was lawful, they are not liable for the offense.
• Explanation: For instance, if someone possesses counterfeit currency with the intent to report it to the authorities, they can avoid criminal liability. The burden is on the individual to establish this lawful purpose.

7. Cognizable Offense

Meaning: BNS Section 180 classifies the possession of counterfeit items as a cognizable offense.

• Police Powers: This means that the police can arrest the individual without a warrant if they have reason to believe the person is involved in the offense.

8. Non-bailable Offense

• Explanation: This section is categorized as a non-bailable offense, meaning that the accused cannot secure bail as a matter of right.
• Detail: The court will decide whether to grant bail based on the specifics of the case, and bail may not be granted easily due to the seriousness of the offense.

9. Trial by Court of Session

Court of Session: Cases under BNS Section 180 are triable by a Court of Session, which handles more serious offenses.

• Explanation: The trial must be conducted in a higher court, reflecting the gravity of the crime and the potential severity of the punishment.

10. Non-compoundable Offense

What it means: The offense is non-compoundable, meaning that the case cannot be

settled between the accused and the complainant.

• Explanation: Once charged, the case must go through the legal process, and no out-of-court settlement can be made to drop the charges.

Example 1: Possession of Counterfeit Currency

Rajesh, a shopkeeper, receives a fake ₹500 note as part of a transaction. After realizing the note is counterfeit, he decides not to report it to the police. Instead, he plans to use the counterfeit note at another shop to avoid the loss. Under BNS Section 180, Rajesh is committing an offense by knowingly possessing and intending to use the fake currency as genuine.

Example 2: Counterfeit Government Stamp

Sunita buys property and needs to pay stamp duty. She receives a forged government stamp from a friend who tells her it’s cheaper but works the same way. Sunita knows the stamp is fake but uses it to complete the transaction. Under BNS Section 180, Sunita is liable for possessing and using a counterfeit government stamp, which is a punishable offense.

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BNS 180 Punishment

Imprisonment: The maximum punishment is imprisonment for up to 7 years.

Fine: The convicted person may also be fined, or both imprisonment and fine can be imposed.

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BNS 180 bailable or not ?

No, BNS Section 180 is non-bailable. This means that the accused cannot automatically get bail but must apply to a higher court, which will decide whether bail is granted based on the case’s merits.

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Comparison Table – BNS 180 vs IPC 489C

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BNS Section 180 FAQs

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Conclusion

BNS Section 180 plays a vital role in curbing the spread of counterfeit items by penalising those who knowingly possess them with intent to use as genuine. Unlike its IPC counterpart, which was confined mainly to paper currency, BNS 180 broadens the scope to include coins and government stamps as well. With punishments of up to seven years’ imprisonment and fine, and its classification as a cognizable, non-bailable, and non-compoundable offence, the section ensures strict accountability. This provision strengthens financial security and preserves trust in government-issued monetary instruments.

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