Text of Section 254:
"Whoever delivers a coin as genuine, which, when first possessed, the deliverer did not know to be altered, shall be punished with imprisonment of either description for a term which may extend to one year, or with fine, or with both."
Section 254 of the Indian Penal Code (IPC) addresses the situation where a person delivers an altered coin as if it were genuine, but at the time the person first acquired the coin, they did not know it was altered. This provision criminalizes the delivery of altered coins under such circumstances, even if the deliverer was unaware of the alteration when they first possessed the coin.
Delivery of Coin: The law specifically focuses on the act of delivery, which means transferring possession of the coin to someone else, whether through sale, gift, or any other method.
Altered Coin: An altered coin is a coin that has been modified or changed from its original, genuine form. Alterations may include changes in its appearance, weight, composition, or markings. Coins may also be counterfeit, i.e., they are not produced by the authorized mint.
Knowledge of the Alteration: The key distinction in Section 254 is that the deliverer must not have known that the coin was altered when they first came into possession of it. The section applies when a person unintentionally delivers an altered coin, not realizing it is fraudulent.
Delivering Coin as Genuine: The offense occurs when a person delivers the coin, misrepresenting it as genuine, even though they were unaware of its altered state. This can happen if a person unwittingly uses an altered coin in a transaction or passes it to someone else, believing it to be legitimate.
Intent of the Deliverer: Since the person did not know that the coin was altered, their intent is not to deceive or commit fraud, but their action still constitutes an offense under this section. The section places a responsibility on individuals to ensure that the coins they are passing along are genuine.
Example 1: A person receives a 1-rupee coin from a friend. Later, they unknowingly pass it on to a shopkeeper, thinking it is a genuine coin, but it has been shaved to resemble a 5-rupee coin. Since the person did not know the coin was altered at the time of possession, but they later delivered it as genuine, they are guilty under Section 254.
Example 2: A person unknowingly acquires a counterfeit 10-rupee coin. The person then uses the coin to purchase an item, believing it to be genuine. In this case, the person is unknowingly delivering an altered coin as genuine, which constitutes an offense under Section 254.
Example 3: A shopkeeper receives an altered 1-rupee coin from a customer, not realizing the coin is counterfeit. The shopkeeper later delivers the coin to another customer, thinking it is a genuine coin. This act of unknowingly delivering the altered coin as genuine is punishable under Section 254.
Protection Against the Circulation of Altered Coins: Section 254 aims to prevent the spread of altered coins in the economy, even if the person involved did not act with fraudulent intent. It emphasizes the importance of ensuring the genuineness of coins before they are used in transactions.
Accountability for Transactions: Although the person delivering the altered coin may not have intended to deceive, the law still holds individuals accountable for the misrepresentation of currency. This helps to maintain the integrity of the currency system by ensuring that altered or counterfeit coins do not circulate.
Fostering Responsible Behavior: The section encourages individuals to be cautious when handling coins and to ensure that the currency they are using or passing along is genuine, thereby promoting responsibility in financial transactions.
Preventing Fraud and Economic Harm: Even though the deliverer of the altered coin did not act with fraudulent intent, their actions can still contribute to economic harm by introducing altered coins into circulation. Section 254 thus works to prevent indirect fraud.
The punishment for delivering an altered coin as genuine under Section 254 is as follows:
Imprisonment: The offender may face imprisonment for up to one year. This may be simple imprisonment or rigorous imprisonment, depending on the circumstances.
Fine: In addition to or in place of imprisonment, the court may impose a fine on the person found guilty. The amount of the fine would be determined by the court based on the nature of the case and other relevant factors.
Both Imprisonment and Fine: The court may decide to impose both imprisonment and fine, depending on the severity of the offense and the extent to which the altered coin was used or delivered.
