Legal Provisions of Section 240 of Indian Penal Code, 1860.
Delivery of Indian coin, possessed with knowledge that it is counterfeit:
While the preceding section penalises fraudulent delivery of a coin, this section punishes fraudulent delivery of Indian coin, possessed with knowledge that it is counterfeit. The section states that whoever has any such counterfeit coin which is a counterfeit of Indian coin, and about which at the time he became possessed of it he had knowledge that it was a counterfeit of Indian coin, with intention to defraud or with intention that fraud may be committed, either delivers the same to any person, or attempt to induce any person to receive it, shall be punished with simple or rigorous imprisonment for a term extending up to ten years, and shall also be liable to fine.
image source: api.ning.com
ADVERTISEMENTS:
The section requires possession of such a counterfeit coin which is a counterfeit of India coin. The accused must have known at the time he became possessed of it that it was a counterfeit of Indian coin. There must be delivery of the same to anyone or attempts to induce another to receive it. The intention on the part of the accused has to be either to defraud or that fraud may be committed. This section being with respect to Indian coin, the punishment is more severe than that in the preceding section.
The offence under this section is cognizable, non-bailable and non-compoundable, and is triable by court of session.