Indian Penal Code, 1860
Section 256
repealedHaving possession of instrument or material for counterfeiting Government stamp
Whoever has in his possession any instrument or material for the purpose of being used, or knowing or having reason to believe that it is intended to be used, for the purpose of counterfeiting 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.
Why this exists
This provision stops counterfeiting before it starts, by punishing preparation itself. Since the tools needed to fake official stamps (dies, plates, special inks) are specialised, simply having them for that purpose is treated as dangerous on its own, similar to how possessing counterfeiting equipment for currency is punished separately from the act of counterfeiting. Replaced by the Bharatiya Nyaya Sanhita, 2023, effective 1 July 2024.