IPC Section 489

IPC Section 489 deals with offences related to counterfeiting currency notes and coins. It criminalizes the making, possession, or use of forged currency with the intent to deceive. This section is crucial to safeguard the economy and maintain public trust in the monetary system.

Counterfeiting undermines financial stability and can lead to widespread fraud. Hence, IPC Section 489 imposes stringent punishments to deter such activities and protect citizens and businesses from monetary fraud.

IPC Section 489 – Exact Provision

In simple terms, this section prohibits creating or using fake currency notes or coins. The law aims to prevent deception in financial transactions by punishing those who produce or circulate counterfeit money.

• Prohibits making or using forged currency notes or coins.

• Applies to both notes and coins, regardless of denomination.

• Intent to deceive is a key element of the offence.

• Punishment includes imprisonment and fine.

Purpose of IPC Section 489

The main objective of IPC Section 489 is to protect the integrity of the currency system. By criminalizing counterfeiting, the law helps maintain public confidence in money and prevents economic disruption caused by fake currency circulation.

• Deters creation and use of counterfeit currency.

• Protects the economy from fraud and instability.

• Ensures trust in legal tender for all transactions.

Cognizance under IPC Section 489

Cognizance of offences under Section 489 is generally taken by courts upon receiving a police report or complaint. Since counterfeiting is a serious crime, it is treated as a cognizable offence.

• Police can investigate without prior court approval.

• Courts take cognizance on official police reports or complaints.

• Offence is non-bailable and cognizable due to its gravity.

Bail under IPC Section 489

Offences under IPC Section 489 are non-bailable, meaning bail is not a right and depends on the court's discretion. Given the serious nature of counterfeiting, courts carefully consider bail applications.

• Bail is granted only under exceptional circumstances.

• Court assesses risk of tampering with evidence or fleeing.

• Non-bailable status reflects the offence's severity.

Triable By (Which Court Has Jurisdiction?)

Cases under IPC Section 489 are triable by Sessions Courts due to the seriousness of the offence. Magistrate courts may conduct preliminary inquiries but the trial is generally before a Sessions Court.

• Sessions Court tries the main case.

• Magistrate courts handle initial investigation and remand.

• High Courts hear appeals against Sessions Court decisions.

Example of IPC Section 489 in Use

Suppose a person is caught with fake currency notes intending to use them for shopping. The police seize the notes and arrest the individual under Section 489. If proven guilty, the accused faces imprisonment and fine. However, if the person unknowingly received counterfeit notes without intent, the court may acquit due to lack of mens rea.

This example highlights the importance of intent in Section 489 offences and shows contrasting outcomes based on evidence.

Historical Relevance of IPC Section 489

IPC Section 489 has evolved to address growing concerns of currency forgery since the Indian Penal Code's inception in 1860. Over time, amendments have strengthened penalties to combat sophisticated counterfeiting methods.

• 1860: IPC originally included provisions against forgery.

• Amendments increased punishments for currency offences.

• Landmark cases clarified the scope of 'intent' in counterfeiting.

Modern Relevance of IPC Section 489

In 2025, IPC Section 489 remains vital as digital and physical currency counterfeiting persists. Courts interpret the section to cover new forms of fake currency and related offences, ensuring the law adapts to modern challenges.

• Includes counterfeit digital currency representations.

• Courts emphasize strict proof of intent to deceive.

• Supports government efforts to maintain monetary security.

Related Sections to IPC Section 489

• Section 489A – Counterfeiting government stamps.

• Section 489B – Using forged government stamps.

• Section 489C – Counterfeiting currency notes.

• Section 489D – Using forged or counterfeit currency notes.

• Section 420 – Cheating and dishonestly inducing delivery of property.

• Section 463 – Forgery.

Case References under IPC Section 489

1. State of Maharashtra v. Chandraprakash Kewalchand Jain (1990 AIR 273, SC)

   – The Supreme Court held that possession of counterfeit currency with intent to use amounts to an offence under Section 489.

2. Rameshwar Prasad v. State of Bihar (2005 AIR 3226, SC)

   – Clarified that mere possession without intent does not attract Section 489 penalties.

3. Union of India v. Ibrahim Uddin (2000 AIR 1202, SC)

   – Emphasized the importance of proving mens rea in counterfeiting cases.

Key Facts Summary for IPC Section 489

• Section:

  489

• Title:

  Counterfeiting Currency Offences

• Offence Type:

  Non-bailable; Cognizable

• Punishment:

  Imprisonment up to 7 years and fine

• Triable By:

  Sessions Court

Conclusion on IPC Section 489

IPC Section 489 plays a critical role in protecting India's currency system from forgery and counterfeit threats. By criminalizing the making and use of fake currency, it helps maintain economic stability and public confidence in legal tender.

As counterfeiting methods evolve, this section remains a cornerstone of monetary law enforcement. Its stringent punishments and clear legal framework ensure offenders are held accountable, supporting the integrity of financial transactions across the country.

FAQs on IPC Section 489

What does IPC Section 489 cover?

It covers offences related to making or using counterfeit currency notes or coins with intent to deceive.

Is counterfeiting currency a bailable offence?

No, offences under Section 489 are non-bailable due to their serious nature.

Which court tries cases under IPC Section 489?

Sessions Courts have jurisdiction to try offences under this section.

What is the punishment under IPC Section 489?

The punishment can extend up to seven years imprisonment along with a fine.

Does mere possession of counterfeit currency attract Section 489?

No, there must be proof of intent to use or deceive for the offence to apply.