Counterfeit
Also called: Counterfeiting
To counterfeit is to cause one thing to resemble another, intending by that resemblance to practise deception or knowing deception to be likely (Section 2(4) of the BNS). The imitation need not be exact.
Explained
Section 2(4) of the BNS (earlier Section 28 of the IPC) says a person counterfeits who causes one thing to resemble another thing, intending by means of that resemblance to practise deception, or knowing it to be likely that deception will thereby be practised. Explanation 1 states that the imitation need not be exact. Explanation 2 raises a presumption: where the resemblance is such that a person might be deceived, it is presumed, until the contrary is proved, that the maker intended to deceive or knew deception to be likely.
The elements are a resemblance caused by the accused and a mental state of intent to deceive or knowledge that deception is likely. Once a deceptive resemblance is shown, Explanation 2 shifts to the accused the burden of disproving that mental state.
The definition feeds several offences. Section 178 punishes counterfeiting, or knowingly performing any part of the process of counterfeiting, any coin, government revenue stamp, currency-note or bank-note, with imprisonment for life or up to ten years and fine. It brings together what the IPC dealt with separately in Sections 231, 255 and 489A. Section 179 punishes using such items as genuine, and Section 180 punishes possession with knowledge and intent to use as genuine, with up to seven years; under its Explanation, possession shown to be from a lawful source is not an offence. Section 181 covers instruments for counterfeiting, and Sections 341, 342 and 347 deal with seals, authenticating marks and property marks. Counterfeiting of currency also appears as an economic offence in Section 111 and as a terrorist act in Section 113 where it damages India's monetary stability.
Do not confuse counterfeiting with forgery. Forgery under Section 336 rests on making a false document or false electronic record as defined in Section 335, while counterfeiting is about making one thing resemble another. Examiners test the two Explanations to Section 2(4), the lawful source Explanation to Section 180, and the punishment under Section 178.
What the law says
(4) “counterfeit”.––A person is said to “counterfeit” who causes one thing to resemble another thing, intending by means of that resemblance to practise deception, or knowing it to be likely that deception will thereby be practised.
Explanation 1.—It is not essential to counterfeiting that the imitation should be exact.
Explanation 2.—When a person causes one thing to resemble another thing, and the resemblance is such that a person might be deceived thereby, it shall be presumed, until the contrary is proved, that the person so causing the one thing to resemble the other thing intended by means of that resemblance to practise deception or knew it to be likely that deception would thereby be practised;
Clause (4) defines counterfeit with its two Explanations
Earlier law: IPC 33. “Act”. “Omission”; 47. “Animal”.; New Sub-Section; 28. “Counterfeit”.; 20. “Court of Justice”.; 46. “Death”.; 24. “Dishonestly”.; 29. “Document”.; 25. “Fraudulently”; 8. Gender.; 52. “Good faith”; 17. “Government”.; 52A. “Harbour“.; 44. “Injury”.; 43. “Illegal”. “Legally bound to do”.; 19. “Judge”.; 45. “Life”.; 42. “Local law”.; 10. “Man”. “Woman”.; 49. “Year”. “Month”.; 22. “Movable property”; 9. Number.; 51. “Oath”.; 40. “Offence”.; 33. “Act”. “Omission”; 11. “Person”.; 12. “Public”.; 21. “Public servant”.; 26. “Reason to believe”
(3) a person commits the offence of “counterfeiting Government stamp” who counterfeits by causing a genuine stamp of one denomination to appear like a genuine stamp of a different denomination;
(4) a person commits the offence of counterfeiting coin who intending to practise deception, or knowing it to be likely that deception will thereby be practised, causes a genuine coin to appear like a different coin; and
(5) the offence of “counterfeiting coin” includes diminishing the weight or alteration of the composition, or alteration of the appearance of the coin.
Counterfeiting coin, government stamps, currency-notes or bank-notes
Earlier law: IPC 231. Counterfeiting coin. 255.Counterfeiting Government stamp. 489A. Counterfeiting currency-notes or bank-notes.; 230. “Coin” defined.; Explanation to 231
notes.—Whoever has in his possession any forged or counterfeit coin, 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, or with fine, or with both.
Explanation.—If a person establishes the possession of the forged or counterfeit coin, stamp, currency-note or bank-note to be from a lawful source, it shall not constitute an offence under this section.
Possession of counterfeit items; lawful source exception
Earlier law: IPC 242. Possession of counterfeit coin by person who knew it to be counterfeit when he became possessed thereof. 243. Possession of Indian coin by person who knew it to be counterfeit when he became possessed thereof. 252. Possession of coin by person who knew it to be altered when he became possessed thereof. 253. Possession of Indian coin by person who knew it to be altered when he became possessed thereof. 259. Having possession of counterfeit Government stamp. 489C. Possession of forged or counterfeit currency-notes or bank-notes.
(1) Whoever counterfeits any property mark used by any other person shall be punished with imprisonment of either description for a term which may extend to two years, or with fine, or with both.
(2) Whoever counterfeits any property mark used by a public servant, or any mark used by a public servant to denote that any property has been manufactured by a particular person or at a particular time or place, or that the property is of a particular quality or has passed through a particular office, or that it is entitled to any exemption, or uses as genuine any such mark knowing the same to be counterfeit, shall be punished with imprisonment of either description for a term which may extend to three years, and shall also be liable to fine.
Counterfeiting a property mark
Earlier law: IPC 483. Counterfeiting a property mark used by another.
Earlier law: Section 28, IPC, Section 489A, IPC
Example
For example, A prints notes made to look like five hundred rupee notes, though the watermark is crude. Exact imitation is not required, so A counterfeits currency-notes and is punishable under Section 178.
For the exam
- Section 2(4) BNS: causing resemblance with intent to deceive, or knowing deception likely.
- Explanation 1: exact imitation is not essential.
- Explanation 2: deceptive resemblance raises a rebuttable presumption of intent or knowledge.
- Section 178: counterfeiting coin, revenue stamp, currency or bank-note, life or up to 10 years and fine.
- Section 180 Explanation: possession shown to be from a lawful source is no offence.
145 questions in the Law Maker question bank use this term. Practise Bharatiya Nyaya Sanhita questions
Related terms
- DocumentAny matter expressed, described or recorded on any substance by letters, figures, marks or other means, intended or usable to record or prove that matter, and including electronic and digital records.
- Valuable securityA document which is, or purports to be, one by which a legal right is created, extended, transferred, restricted, extinguished or released, or by which a person acknowledges legal liability. Section 2(31) of the BNS.
- FraudulentlyDoing anything with the intention to defraud, but not otherwise (Section 2(9) of the BNS). The intention involves deceit and an intended injury to the person deceived.
- Terrorist actAn act done with intent to threaten the unity, integrity, sovereignty, security or economic security of India, or to strike terror, by the means listed in Section 113 BNS or Section 15 UAPA.
- Organised crime syndicateA group of two or more persons who, acting singly or jointly, as a syndicate or gang indulge in any continuing unlawful activity (Section 111 of the BNS).
Further reading
Checked 6 November 2026. Statutory text is quoted from the Bare Acts library, taken from India Code. See the full glossary.