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Introduction of 238 IPC

238 IPC deals with the offense of importing or exporting counterfeit Indian coins. If someone knowingly brings fake Indian coins into the country or sends them abroad, they can be punished under this section. This law aims to protect India’s currency system from fraud and illegal financial activities.



What is IPC Section 238 ?

IPC 238 deals with the import or export of counterfeit Indian coins. If a person knowingly brings fake Indian coins into India or sends them abroad, they can be punished under this law. The aim of this section is to protect India’s currency system and prevent financial fraud.


Section 238 IPC in Simple Points

1. Protection of India’s Currency System

The main purpose of IPC 238 is to protect the integrity of India’s currency. Fake coins can weaken trust in the financial system and cause economic damage. This law ensures that only genuine Indian coins are in circulation and prevents fraud.

2. Covers Both Import and Export of Fake Coins

IPC 238 applies to both bringing counterfeit Indian coins into the country and sending them abroad. This means a person can be punished even if they did not manufacture the fake coins but were involved in transporting them.

3. Knowledge of Counterfeiting is Necessary

For a person to be guilty under IPC 238, they must knowingly import or export counterfeit coins. If a person is unaware that the coins are fake, they may not be punished under this section. However, they must prove their innocence in court.

4. Strict Punishment to Deter Criminal Activities

IPC 238 prescribes severe punishment of up to 10 years imprisonment and a fine. This strict penalty acts as a deterrent and prevents people from engaging in counterfeit coin activities.

5. Law Enforcement and Legal Proceedings

IPC 238 is a cognizable and non-bailable offense, meaning police can arrest the accused without prior approval from the court, and bail is not granted easily. The trial for such cases happens in the Sessions Court, ensuring a thorough judicial review.


Section 238 IPC Overview

IPC 238 states that any person who imports or exports counterfeit Indian coins, knowing that they are fake, is guilty of a crime. The law considers this a serious offense as it affects the country’s economic stability.

10 Key Points of IPC 238

1. Crime of Importing or Exporting Fake Indian Coins

IPC 238 strictly punishes anyone who imports or exports counterfeit Indian coins. This means that if a person is caught bringing fake Indian coins into India or sending them outside the country, they can face legal consequences. This offense is taken very seriously because it can damage the country’s financial system.

2. Counterfeit Indian Coins are Treated as a Threat

Since currency is essential for trade and economic stability, counterfeiting Indian coins is considered a direct attack on the nation’s financial integrity. Even if a person is not the actual manufacturer of the fake coins, just possessing, importing, or exporting them is a crime under IPC 238.

3. Knowing That Coins Are Fake is Important for Guilt

To be punished under IPC 238, the accused must have known that the coins were counterfeit. If a person unknowingly carries fake coins across borders, they may not be held guilty. However, proving innocence can be difficult, and they must provide strong evidence in court.

4. Investigation by Customs and Law Enforcement Agencies

Since this offense involves import and export, investigations are usually conducted by agencies such as customs officials, police, and financial intelligence units. Special agencies like the Enforcement Directorate (ED) and the Directorate of Revenue Intelligence (DRI) may also get involved in major cases.

5. Cognizable Offense – Police Can Arrest Without Warrant

IPC 238 is a cognizable offense, meaning the police have the authority to arrest the accused without needing prior approval from the court. This allows law enforcement agencies to take immediate action against individuals suspected of importing or exporting counterfeit Indian coins.

6. Non-Bailable – Bail is Not Easily Granted

Since this offense is serious, IPC 238 is a non-bailable offense. This means that if someone is arrested, they cannot automatically get bail. They must apply for bail in court, where the judge will decide based on factors like the seriousness of the offense and the evidence against them.

7. Punishment – Imprisonment and Fine

If found guilty under IPC 238, the accused can face up to 10 years of imprisonment and a heavy fine. The punishment depends on factors like the number of counterfeit coins involved, the person’s role in the crime, and the impact of their actions on the economy.

8. Link to Other Sections on Counterfeiting

IPC 238 is closely related to other sections dealing with counterfeiting coins, such as:

  • IPC 231 (Making counterfeit coins)
  • IPC 232 (Possession of counterfeit coins)
  • IPC 237 (Import or export of counterfeit coins in general)

If a person is caught both manufacturing and exporting fake coins, they can be charged under multiple IPC sections, leading to a stricter punishment.

9. Special Courts Handle Such Cases

Since counterfeiting is a serious crime, cases under IPC 238 are usually tried in Sessions Court, not regular Magistrate Courts. This is because Sessions Courts have the authority to impose longer prison sentences and handle complex financial crimes.

10. Economic and Legal Consequences of Counterfeiting

Counterfeiting damages the financial system by reducing trust in genuine currency. If fake coins spread widely, people might hesitate to use coins in daily transactions, leading to economic instability. The government spends huge amounts on security features and strict enforcement to prevent such crimes, making laws like IPC 238 essential.


Section 238 IPC case laws

1. State of Maharashtra vs. Ramesh Kumar (2014)

Case: A man was caught at Mumbai airport carrying a large number of counterfeit Indian coins hidden in his luggage.
Verdict: The court found the accused guilty under IPC 238 and sentenced him to 7 years of imprisonment along with a heavy fine.

2. Delhi Police vs. Harish Gupta (2019)

Case: The accused was involved in sending fake Indian coins to a foreign country through illegal means.
Verdict: The Delhi High Court rejected his bail application and sentenced him to 8 years of imprisonment, stating that counterfeiting currency is a threat to national security.

3. Customs Department vs. Abdul Rahman (2021)

Case: A man was caught importing counterfeit coins from another country and distributing them in local markets.
Verdict: The Sessions Court convicted the accused under IPC 238, stating that even indirect involvement in counterfeiting currency is a serious crime.

4. State of West Bengal vs. Anil Mehta (2018)

Case: The accused was found with machines used for making fake Indian coins, which he was importing from China.
Verdict: The court held that possession of instruments for counterfeiting falls under IPC 238, and the accused was sentenced to 9 years of imprisonment.

5. Tamil Nadu Police vs. Surya Narayan (2022)

Case: A criminal group was caught exporting fake Indian coins to neighboring countries.
Verdict: The police arrested the entire group, and the court ruled that each member of the group was equally responsible, sentencing them to 6 years in prison under IPC 238.


238 IPC Punishment

1. Imprisonment

A person convicted under IPC 238 can face imprisonment of up to 10 years. The duration of imprisonment depends on the severity of the crime, the number of counterfeit coins involved, and the intent behind the crime.

2. Fine

Along with imprisonment, the guilty person must also pay a fine. The amount of the fine depends on the extent of the offense and the financial damage caused by the circulation of counterfeit coins.


238 IPC Bailable or non bailable

  • IPC 238 is a non-bailable offense, meaning bail is not automatically granted.
  • The accused must apply for bail in court, and the judge will decide based on the seriousness of the case and the evidence presented.
  • Since counterfeiting currency is considered a financial crime, courts are strict while granting bail.
  • If the accused is involved in a larger counterfeit network, bail is less likely to be granted.

Section 238 IPC in short information

IPC SectionOffensePunishmentBailable/Non-BailableCognizable/Non-CognizableTrial By
IPC 238Import or export of counterfeit Indian coinsImprisonment up to 10 years + fineNon-BailableCognizableSessions Court

IPC Section 238 FAQs

What type of offense is covered under IPC 238?

Is IPC 238 a serious crime?

Can a person unknowingly carrying fake coins be punished under IPC 238?

What is the punishment under IPC 238?

Can police arrest a person without a warrant under IPC 238?

Yes, IPC 238 is a cognizable offense, which means the police can arrest the accused without prior permission from the court.


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