Section 258 IPC - Sale of Counterfeit Government Stamp

Section 258 of the Indian Penal Code, 1860 dealt with selling or offering for sale a counterfeit Government stamp issued for the purpose of revenue, where the person knew or had reason to believe that the stamp was counterfeit.

Applicability: This article explains Section 258 IPC as it stood before the Bharatiya Nyaya Sanhita, 2023 came into force on 1 July 2024. For conduct governed by the new law, see the applicable provisions of the Bharatiya Nyaya Sanhita, 2023. IPC Section 258 is reflected in the consolidated subject matter of Section 179 BNS.

Text and meaning of Section 258 IPC

Whoever sells, or offers for sale, any stamp which he knows or has reason to believe to be a counterfeit of any stamp issued by Government for the purpose of revenue, shall be punished with imprisonment of either description for a term which may extend to seven years, and shall also be liable to fine.

The provision targeted the commercial circulation of counterfeit Government revenue stamps. A mere sale or offer for sale was not enough by itself: the prosecution also had to establish the required state of knowledge or reason to believe that the stamp was counterfeit.

Essential ingredients of the offence

For Section 258 IPC to apply, the material allegations and evidence had to establish these elements:

There was a stamp issued by Government for the purpose of revenue which had been counterfeited.
The accused sold the counterfeit stamp or offered it for sale.
At the relevant time, the accused knew or had reason to believe that the stamp was counterfeit.

Meaning of "counterfeit" under Section 28 IPC

Section 28 IPC explained counterfeiting in terms of causing one thing to resemble another with the intention of practising deception, or knowing it to be likely that deception would thereby be practised. Exact imitation was not required. The statutory explanation also created a presumption concerning intention or knowledge where the resemblance was such that a person might be deceived.

"Reason to believe" under Section 26 IPC

Section 26 IPC provided that a person is said to have "reason to believe" a thing if he has sufficient cause to believe that thing, but not otherwise. Accordingly, Section 258 covered both actual knowledge and circumstances furnishing sufficient cause to believe that the Government revenue stamp was counterfeit.

Punishment under Section 258 IPC

Offence	Punishment under Section 258 IPC
Selling or offering for sale a counterfeit Government revenue stamp with the required knowledge or reason to believe	Imprisonment of either description for a term which may extend to seven years, and fine

Scope of the provision

Section 258 specifically concerned a counterfeit of a stamp issued by Government for the purpose of revenue. The offence extended to both a completed sale and an offer for sale. Its mental element distinguished culpable dealing in counterfeit stamps from conduct lacking the statutory knowledge or reason to believe.

Related Government stamp offences under the IPC

Section 258 formed part of the IPC provisions dealing with offences relating to Government stamps. Closely related provisions included Section 255 on counterfeiting Government stamps, Section 256 on possession of instruments or material for counterfeiting such stamps, Section 257 on making or selling such instruments, Section 259 on possession of counterfeit Government stamps and Section 260 on using as genuine a Government stamp known to be counterfeit.

Present-law cross-reference

With effect from 1 July 2024, the Bharatiya Nyaya Sanhita, 2023 replaced the IPC as the general penal code. The subject matter of IPC Section 258 is included in Section 179 BNS, which consolidates offences concerning use as genuine of forged or counterfeit coin, Government stamps, currency-notes and bank-notes. The applicable law should be determined with reference to the date and facts of the alleged offence.