Section 181: Making or Possessing Machinery or Material for Counterfeiting Coins

Bharatiya Nyaya Sanhita • Chapter IX: Of Offences Relating to Coin, Currency & Stamps • Official Statutory Text & Legal Guide

Chapter IX: Of Offences Relating to Coin, Currency & Stamps
Court of Session
Non-Bailable
Cognizable
Formerly Sec 233, 234, 489D IPC

Legal Commentary & Landmark Judgments: Section 181

Section 181 penalizes making or possessing machinery, instrument, or material for counterfeiting coins, government stamps, currency notes, or bank notes, prescribing imprisonment for life or up to ten years, and fine.

  • Counterfeiting Machinery & Plates: Making, buying, selling, or possessing printing presses, intaglio plates, dies, paper, security ink, or cutting apparatus.
  • Counterfeiting Purpose: Knowing or having reason to believe that the machinery or material is intended to be used for counterfeiting currency, coins, or stamps.
  • Destruction of Counterfeit Infrastructure: Dismantles illicit printing factories and currency manufacturing cells (formerly Sections 233, 256, and 489D IPC).
Key Landmark Precedents:
  • State of Kerala v. Mathai Verghese (1986) 4 SCC 746: The Supreme Court affirmed that possessing machinery and materials for counterfeiting currency strikes at the economic order and warrants severe punishment under Section 489D IPC (Section 181 BNS).
  • State of Maharashtra v. Som Nath Thapa (1996) 4 SCC 659: Affirmed that recovery of specialized printing plates and high-grade security paper establishes completed possession for counterfeiting.
Courtroom Practice & Strategic Litigation Guidance:

In printing press raid cases, examine the machinery seized: if the offset printer or computer was used for ordinary commercial printing of wedding cards or flyers and no currency dies were found, Section 181 BNS charges cannot be sustained.