Possession of forged or counterfeit currency-notes or bank-note
Section 489C of the Indian Penal Code, 1860 deals with possession of forged or counterfeit currency-notes or bank-note. Possession of forged or counterfeit currency-notes or bank- notes.-Whoever has in his possession any forged or counterfeit 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, 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 Repealed by section 358 of the Bharatiya Nyaya Sanhita, 2023 (45 of 2023) with effect from 1 July 2024, but conduct before that date is still charged, tried and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.
Possession of forged or counterfeit currency-notes or bank- notes.-Whoever has in his possession any forged or counterfeit 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.
Section 489C, The Indian Penal Code, 1860 (Act 45 of 1860).
Now in the Bharatiya Nyaya Sanhita
BNS 180 Possession of forged or counterfeit coin, Government stamp, currency-notes or bank-notes Close, with changes 78%
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 The repealed enactment still governs what happened while it was in force.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.
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.
-
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 possession of forged or counterfeit currency notes with knowledge and intention to use them as genuine; the Court held that knowledge and intention are statutory requirements that cannot be presumed
-
K. Hashim vs State of Tamil Nadu
Court's Decision & Legal Precedent
In criminal conspiracy cases involving counterfeiting of currency notes, the evidence of accomplices (approvers) is admissible under Section 10 of the Indian Evidence Act and can form basis of conviction if credible and cogent, provided it is corroborated in material particulars as required by Section 114(b) Evidence Act as a matter of prudence. Such corroboration need not be direct evidence of the crime but can be circumstantial evidence of the accused's connection with the crime. The definition of 'counterfeiting' under Section 28 IPC is wide and covers causing one thing to resemble another with intention or knowledge of deception without requiring exact reproduction, and Explanation 2 creates rebuttable presumption of counterfeiting intent when resemblance is such that person might be deceived. Sections 489A, 489C and 489D IPC apply to foreign currency including US dollars and cover possession of materials and instruments for counterfeiting process.
On this section: Possession of forged or counterfeit currency notes - requires knowledge or reason to believe notes are counterfeit and intention to use as genuine; applies to foreign currency including US dollars
-
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: Possession of counterfeit currency notes - requires knowledge or reason to believe that notes are counterfeit; mere possession is insufficient
-
Mahendra Rajendra Thakur vs The State of Maharashtra
Court's Decision & Legal Precedent
All three ingredients of Section 489(C) IPC - possession of counterfeit notes, knowledge that they are counterfeit, and intention to use them as genuine - were proved against the appellants through: (1) direct evidence of recovery of 48 counterfeit notes from their possession; (2) expert report from India Security Press confirming all notes were counterfeit; (3) circumstantial evidence and testimony of accomplice witnesses establishing knowledge and intention; (4) the appellants' failure to offer any explanation for their possession. Therefore, the conviction under Section 489(C) r/w 34 IPC is justified. However, considering the small quantity of notes and the substantial pre-trial custody already undergone (ranging from 19 months 11 days to 21 months 10 days), the sentence should be reduced to time already served rather than the three years imposed by the trial court.
On this section: Primary section applied for conviction; requires proof of possession of counterfeit notes with knowledge they are counterfeit and intention to use them as genuine; court analyzed all three ingredients required under this section
-
Jiyabur Rahman vs The State of Assam
Court's Decision & Legal Precedent
After rejection of an application for pre-arrest bail under Section 438 CrPC on merits, a subsequent bail application can only be entertained if there is a material change in the fact situation or in law which requires the earlier view to be interfered with or where the earlier finding has become obsolete. Mere availability of a forensic report on seized counterfeit currency notes, when the underlying facts and evidence were already considered in the earlier rejection, does not constitute such material change.
On this section: Possession of counterfeit notes; petitioner charged with possession of counterfeit currency notes
-
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: Possession of counterfeit currency with knowledge of counterfeiting
-
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 - alternative 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.
-
… 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 …
-
… is necessary. "Reason to believe" is defined in Section 26 of the Indian Penal Code which reads as follows: "A person is said to have "reason to believe" a thing, if he has sufficient cause to believe that thing but not otherwise". The prosuection should prove also the "reason to believe" the things mentioned in Section 489C IPC to convict a person. But this proof need not be necessarily by direct evidence. The various circumstances leading to the seizure of forged notes and the manner in which the accused came into possession of these notes are important circumstances. In this case original accused No.2 gave statement which leads to …
-
… is necessary. "Reason to believe" is defined in Section 26 of the Indian Penal Code which reads as follows: "A person is said to have "reason to believe" a thing, if he has sufficient cause to believe that thing but not otherwise". The prosuection should prove also the "reason to believe" the things mentioned in Section 489C IPC to convict a person. But this proof need not be necessarily by direct evidence. The various circumstances leading to the seizure of forged notes and the manner in which the accused came into possession of these notes are important circumstances. In this case original accused No.2 gave statement which leads to …
Questions about Section 489C
What have the courts held on Section 489C of the Indian Penal Code?
Umashanker vs State of Chhattisgarh (05 Oct 2001) is the leading judgment on this section among those set out below: Criminalizes possession of forged or counterfeit currency notes with knowledge and intention to use them as genuine; the Court held that knowledge and intention are statutory requirements that cannot be presumed. Another 6 judgments on this section are set out below, 2 of them from the Supreme Court. They run from 2001 to 2023.
How do I find court cases under Section 489C 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 489C, section 489C IPC, section 489C of the Indian Penal Code. People searching for it also type 489c ipc punishment and 489c ipc bailable or not. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 7 reported judgments on this section are set out on this page, beginning with Umashanker vs State of Chhattisgarh (05 Oct 2001).
What should I read with Section 489C of the Indian Penal Code, and has it changed?
For anything done on or after 1 July 2024 the provision to read is BNS 180 (Possession of 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 489C of the Indian Penal Code come into force?
Section 489C of the Indian Penal Code, cited as IPC 489C, 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
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Recovered from the consolidated text published by India Code (item 7b7d4fe6-206b-4e33-81f1-b98b018acaf6). This page is not a substitute for legal advice.