September 2, 2020

OFFENCES RELATING TO COIN AND GOVERNMENT STAMPS UNDER IPC

By E-Justice India Constitution 0 Comments

Author : Monalisha Singh

Coins are basically the foremost used sort of currency which is utilized in the daily transactions and that they are transferred from one person to a different very frequently. But have you ever ever considered what if these small denominations are counterfeit or fake and to what extent they will impact the entire market and what to try to to albeit you notice the fake coins, what are the measures and precautions everyone should absorb his/her daily transactions. Unlike the coins, the cases of state stamps are less because now their use became less but have you ever considered what if the counterfeit of state stamp papers are used matters associated with land or property. So during this article, I even have covered the world about how the counterfeit coins are made, how they’re circulated within the market, what are the results of liquidation of the counterfeit coins and stamps, what are the laws governing and regulating these sorts of activities. In this article, I even have also discussed about the position of several laws and what are the issues within the governing laws and the way in several circumstances they need been interpreted.

Coins

Indian Coin is defined because the metal stamped and issued by the govt of India so as to be used as money under Section 230 of Indian legal code ,1860.Coins in India are issued by the Federal Reserve Bank of India(RBI) which is entitled to receive the availability of coins from Government of India. There are various mints like mints in Mumbai,Kolkata,Hyderabad which not only mint coins but also make coin blanks (round metal disks which are able to be stuck down as a coin) which are incorporated as units under Security Printing and Minting Corporation of India Limited(SPMCL).Unlike the currency notes, printed by the RBI, the coins in India are minted under The Coinage Act, 2011.

Counterfeiting of Coins

Counterfeiting of coins is an offence as incorporated under Section 231 of Indian legal code ,1860 during which an individual commits the offence meaning to practice deception or knowing it to be likely that deception will happen or maybe if he’s a neighborhood of the method of counterfeiting coins are going to be entitled for the imprisonment which can depend on the circumstances and facts of the case and it can extend upto imprisonment for seven years and can even be responsible for fine.But the matter is that albeit it’s a punishable offence its impact is more harmful because these counterfeit coins and currencies will cause inflation within the market because excess liquidity are going to be there within the market and RBI can regulate only the accounted money and thus will impact the economy of our country.Also, counterfeiting is completed so secretly that it’s hard to seek out the fake coins and these coins are tremendous in amount and minted so frequently by the mint companies that it’s difficult to spot and check each and each coin.Another big problem is that the ownership of those coins within the market changes very quickly and thus to seek out the counterfeiter is again a difficult task and therefore the probability of punishing an innocent person is extremely high. If we see recently, the counterfeit agencies are currently active in Gujarat, Mumbai , Delhi, Saharanpur in Uttar Pradesh and Murshidabad in Bengal. Recently, in May 2019 , a racket printing the fake coins and currency was captured in Delhi- NCR region primarily within the industrial belt near Faridabad and also police captured some toll booths of the national highways where the printing of Rs.5 and Rs.10 denominations were done.

Making or Selling Counterfeiting Coin

How they’re made?

The casting of faux or counterfeit coins is extremely easy at its lowest level. one among the most cost effective and therefore the easiest method is to easily pouring the liquid metal into a caste mold of the authentic coin. these metals are easily available within the market and therefore the producers manage to pour the metal which is sweet enough to offer the precise same colour of the first coin. there’s another category of coins on which counterfeiting is usually done referred to as Struck- Counterfeit coins.These coins are made for a few unrecognizable counterfeit coins.There process are an equivalent because the process followed in making the first coins as followed by the mint companies.These coins are basically made by the Spark Erosion method during which electromagnetic sparks are wont to erode the metal.However, this method is dear but these sorts of counterfeit coins are made within the same way.

How are these Coins liquidate in our market ?

The liquidation of those fake coins is straightforward because it can start from the very lower level because they will be made individually and also the instruments that are needed in making these coins are sold by the mint companies from which they get reciprocally the good profits. However, making or selling the instruments for fake coins is an offence under Section 233 of IPC during which the imprisonment upto three years are often given. Also, differently of liquidating these coins is by importing .In 2017, there was the most important amount of Rs. 50 crores within the sort of fake coins were imported in India by the famous gang of Upkar Luthra and Sweekar Luthra.

Possession of Instrument or Material for Counterfeiting Coin

Section 235 of IPC states about the extent upto ten years of imprisonment whoever is in possession of any instrument or material used for creating the counterfeit coins. But if we glance practically, this provision is extremely difficult to implement because again the probabilities of punishing the innocent are high and a person are often struck during this process.It was therefore held within the case of Shahid Sultan Khan vs State of Maharashtra where the police raided the Kaniz Apartment in Mumbra found the denominations of Rs.5 notes and coins of Rs.1,Rs.2,Rs.5 and therefore the refore the instrument which were used for creating those coins but not in theiractive state but the appellant was arrested for keeping possession of the instruments and materials used for counterfeiting and was convicted by the court but the supreme court reversed the choice and said held that mere possession of the materials or instruments for creating the fake coins isn’t enough to be as evidence that counterfeiting is completed under Section 232 and Section 235 of the IPC but it’s to satisfy the need of Section 28 of IPC which says that intention to deception is important or malice aforethought plays the important role and the appellant was held not liable.

Delivery of Counterfeit Coin

The delivery of the fake coins are done along side mostly the delivery of antique or rare coins through auction.There are some auctioning companies like Todywalla Auctions etc. which are known to be the most important antique coins selling company in India which are basically trusted but another fake companies also are there which sell their coins through fake dealers and to draw in the purchaser, they use online mode of delivery like there was the fake ebay dealer captured for selling the fake antique coin who showed the first coin online but shipped the fake coin.Also, it’s easy to sell the counterfeit coins online because to see the authenticity of the corporate is a smaller amount than the offline sale and also it’s easy for the producers to flee from the liability because it’s easy to get rid of the info online than in offline sales. Also, the delivery of the traditional coins which we use within the market, most of the people don’t concentrate to the coins unlike the notes, therefore, it’s easily transferable within the market from one person to a different .However, the person whoever has the counterfeit coin and delivers an equivalent to a different while knowing that it’s a fake coin is responsible for the imprisonment which may extend upto 5 years and he also will responsible for the fine.

Criminal Acts of Mint Employees

The most frequent act which is completed by the mint employees is that the selling of the instruments and materials to the opposite companies for printing the fake coins and notes by which they earn great profits.This activity becomes more frequent when RBI instructs them to form more number of coins as required as per the market because then it’s difficult to see the majority amount .However, it’s been stated in Section 244 of IPC states about the punishment of imprisonment upto seven years to the mint employees if they omits to try to to what they’re legally sure to do with the intention of causing the tempering with the coin but are prevented under Section 245 which states that the workers aren’t liable if coining instruments are taken from them unlawfully.

Alteration of Coins

Alteration of coins are basically done to supply a passable counterfeit coins in order that a standard genuine coins in order that it appears to be a rare genuine coin.It is done also for advertising as on ancient coins advertising logos and slogans are written.So, it’s often illegal to change the coins but laws are different in several countries and basically it depends upon the character of alteration and intention of the person making the alteration.Coins in India are minted under The Coinage Act, 2011.According to the Act, nobody shall use the metal whether stamped or unstamped meaning to use for creating the cash . No person can destroy the form ,design,change colour, cut the coin otherwise he are going to be responsible for bearing the loss for cutting or destroying the coin and therefore the loss are going to be calculated consistent with the face value of the coin.

Government Stamps

Counterfeiting the govt stamps

Section 255 of IPC states about counterfeiting the govt stamps and imposes the imprisonment of life or it are often extended upto seven years depending upon the facts and circumstances of the case.Unlike the coins, the cases of faux government stamps are less because now the utilization of the stamps are less as compared to earlier times.But,our focus should get on the stamp papers regarding the land , property etc. because recently in August 2019, there have been 2 stamp vendors who were arrested for creating fake land documents in Hyderabad.However, various sections are there in IPC which have restricted the sell or purchase of counterfeit government stamps like Section 258 which restricts the sell or purchase of faux stamps to which the imprisonment upto seven years is given and also the supply associated with the possession of instrument or material used for creating the counterfeit stamps is incorporated under Section 259 of IPC.