IPC Section 262
IPC Section 262 – Making or selling a counterfeit coin with intent to defraud
Text of Section 262 (in simple terms):
Whoever makes or knowingly sells, buys, or uses a counterfeit coin (or any imitation coin) with the intention of cheating or defrauding someone, shall be punished.
Key Elements of Section 262
Offense Related to Coin:
The law targets counterfeit coins or imitation coins.
Counterfeit coins are coins fraudulently made to resemble genuine currency.
Imitation coins include fake coins that look like real coins but are not issued by the government.
Acts Covered:
Making counterfeit coins.
Selling, buying, or using them.
Intent to defraud is crucial — simply possessing a counterfeit coin without intent to cheat may attract other sections but not 262.
Mens Rea (Intent):
The person must intend to cheat or defraud another.
Mere possession without fraudulent intent is not covered under this section.
Knowledge:
The person must know that the coin is counterfeit or imitation.
Mistakenly accepting a coin believing it is genuine is not an offense under 262.
Punishment:
Imprisonment of up to 3 years, or
Fine, or
Both, depending on the severity of the offense.
Example Scenarios
Scenario 1 – Making fake coins:
A person manufactures coins that look exactly like government-issued currency and plans to circulate them.
This is clearly covered under Section 262.
Scenario 2 – Selling counterfeit coins:
Someone sells imitation coins to others, knowing they are fake, intending that buyers accept them as real.
Section 262 applies here.
Scenario 3 – Accidental possession:
A shopkeeper unknowingly receives a counterfeit coin from a customer.
No Section 262 offense, because there was no knowledge or intent to defraud.
Key Points to Remember
Intent and knowledge are crucial – Section 262 punishes deliberate fraud, not accidental possession.
Covers making, selling, buying, or using counterfeit coins.
Focus: Protect the economy and prevent fraud using fake currency.
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