Using as genuine, forged or counterfeit currency-notes or bank-notes
Section 489B of the Indian Penal Code, 1860 deals with using as genuine, forged or counterfeit currency-notes or bank-notes. Whoever sells to, or buys or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, shall be punished with 2 *[imprisonment for life], or with impris The Act came into force on 01 Jan 1862. Repealed by section 358 of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023) with effect from 1 July 2024, but conduct before that date is still charged, tried and appealed under it.
Whoever sells to, or buys or receives from, any other person, or otherwise traffics in or uses as genuine, any forged or counterfeit currency-note or bank-note, knowing or having reason to believe the same to be forged or counterfeit, shall be punished with 2 *[imprisonment for life], or with imprisonment of either description for a term which may extend to ten years, and shall also be liable to fine.
2. Subs. by Act 26 of 1955, s. 117 and Sch., for "transportation for life".
3. Subs. by Act 35 of 1950, s. 3 and Sch., II, for "489C and 489D".
Section 489B, The Indian Penal Code, 1860 (Act 45 of 1860).
Now in the Bharatiya Nyaya Sanhita
BNS 179 Using as genuine, forged or counterfeit coin, Government stamp, currency-notes or bank-notes Close, with changes 79%
Measured by comparing the text of the two provisions, not taken from an official correspondence table — there is no machine-readable one. See both texts side by side before relying on it.
Both regimes are live. The repealed enactment still governs what happened while it was in force. We never redirect one to the other.
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Javed Gulam Nabi Shaikh vs The State of Maharashtra
Court's Decision & Legal Precedent
When an undertrial prisoner has been in custody for an extraordinarily long period (over four years), the trial court has not framed charges, and there is no likelihood of trial being completed within reasonable time despite stringent statutory bail restrictions, the constitutional courts can grant bail on grounds of violation of the fundamental right to speedy trial under Article 21. The test for bail is whether the accused will appear at trial, not the seriousness of the crime. Bail cannot be withheld as punishment. The rigours of stringent statutory provisions like Section 43-D(5) of UAPA melt down when the period of incarceration has exceeded a substantial part of the prescribed sentence and speedy trial cannot be ensured.
On this section: Original offences for which the appellant was arrested - counterfeiting currency notes and criminal conspiracy.
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Umashanker vs State of Chhattisgarh
Court's Decision & Legal Precedent
In prosecutions under Sections 489-B and 489-C of the Indian Penal Code (relating to use, trafficking, and possession of counterfeit currency notes), the Crown bears an essential burden of affirmatively proving the mens rea element - specifically, that the accused 'knew or had reason to believe' that the currency notes were forged or counterfeit. Mere possession of counterfeit notes, or even their use in a transaction, cannot, without more, lead to a conviction; the prosecution must lead affirmative evidence establishing the accused's guilty knowledge or belief. A presumption of mens rea drawn solely from the fact that witnesses identified a note as counterfeit is not warranted under Section 4 of the Indian Evidence Act. Courts must be cautious in applying these statutory provisions and must not extend them to punish unwary possessors or users. The absence of any specific questioning of the accused under Section 313 of the Criminal Procedure Code regarding his knowledge of the counterfeit nature of the notes further vitiates the conviction when the only piece of evidence relied upon is circumstantial (possession and use).
On this section: Criminalizes using, selling, buying, receiving, or trafficking in forged or counterfeit currency notes knowing or having reason to believe them to be counterfeit; the Court emphasized that mens rea is essential and must be proved by the prosecution
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Ugranarain Rai vs State of Bihar
Court's Decision & Legal Precedent
Mere possession of currency notes, even if they are counterfeit, does not constitute an offence under Sections 489B and 489C IPC unless the prosecution proves beyond reasonable doubt that the accused possessed the notes with knowledge or with reason to believe that they were counterfeit. Additionally, a preliminary opinion from the Reserve Bank of India is not admissible under Section 292 Cr.P.C. to establish that currency notes are counterfeit; only the final opinion from the authorized mint at Dewas, Madhya Pradesh is admissible for this purpose. The burden of proof lies on the prosecution to establish each and every ingredient of the offence through admissible evidence, and circumstantial evidence or preliminary expert opinions are insufficient to sustain a conviction for counterfeiting offences.
On this section: Dealing with counterfeit currency notes - requires proof that person is selling, buying, receiving, trafficking in or using as genuine any forged or counterfeit notes with knowledge or reason to believe they are counterfeit
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Lal Singh vs State of Rajasthan through Pp
Court's Decision & Legal Precedent
When an accused has been in custody for a considerable period, the challan has been presented, trial conclusion may take substantial time, and there is no evidence of prior criminal involvement or other criminal cases, bail should be granted under Section 439 CrPC, subject to satisfaction of the trial court, without expressing opinion on the merits of the case.
On this section: Using as genuine counterfeit currency known to be counterfeit
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Inderjit Singh vs State
Court's Decision & Legal Precedent
An appeal against conviction based on a voluntary guilty plea is not maintainable under Section 375 Cr.P.C., but an appeal against the extent of sentence is maintainable. In cases where the appellant is a first-time offender and has already undergone substantial imprisonment, the sentence may be reduced to the period already undergone as a matter of sentencing discretion and judicial compassion.
On this section: Counterfeiting currency notes - primary offence charged against appellant
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… By the aforesaid order, the High Court of Judicature at Allahabad, Lucknow Bench ('High Court' hereinafter) has rejected the bail application of the petitioner filed under Section 439 of the Code of Criminal Procedure, 1973 (Cr.P.C.) in Crime No. 01 of 2015 registered under Sections 489B and 489C of the Indian Penal Code, 1860 ('IPC' for short) and under Section 16 of the Unlawful Activities (Prevention) Act, 1967 ('UAP Act' for short) before Police Station ATS, Uttar Pradesh, District Lucknow. 4. This Court by order dated 10.04.2024 condoned the delay in filing the related Special Leave Petition …
Questions about Section 489B
What have the courts held on Section 489B of the Indian Penal Code?
Javed Gulam Nabi Shaikh vs The State of Maharashtra (03 Jul 2024) is the leading judgment on this section among those set out below: Original offences for which the appellant was arrested - counterfeiting currency notes and criminal conspiracy. Another 4 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2001 to 2024.
How do I find court cases under Section 489B of the Indian Penal Code?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: IPC 489B, section 489B IPC, section 489B of the Indian Penal Code. People searching for it also type ipc 489b 489c and 489b ipc punishment. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 5 reported judgments on this section are set out on this page, beginning with Javed Gulam Nabi Shaikh vs The State of Maharashtra (03 Jul 2024).
What should I read with Section 489B of the Indian Penal Code, and has it changed?
1 other provision in this corpus refers back to it. For anything done on or after 1 July 2024 the provision to read is BNS 179 (Using as genuine, forged or counterfeit coin, Government stamp, currency-notes or bank-notes), which replaced it; conduct before that date is still charged, tried and appealed under this section.
When did Section 489B of the Indian Penal Code come into force?
Section 489B of the Indian Penal Code, cited as IPC 489B, came into force on 01 Jan 1862, having been enacted on 06 Oct 1860. It is no longer in force.
Other sections of this Act
- 499. Defamation1512 words
- 464. Making a false document1223 words
- 300. Murder1172 words
- 378. Theft980 words
- 108. Abettor745 words
- 403. Dishonest misappropriation of property727 words
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