A bill, providing for raising of maximum punishment for melting or destruction of coins from five to seven years of imprisonment, was today passed by the Lok Sabha without a debate.
The Coinage Bill 2009, which was adopted by voice vote after finance minister Pranab Mukherjee moved it for consideration and passage, amalgamates four existing laws related to coinage and revises the provisions of these Acts.
The bill was introduced in the house in December 2009 and was referred to the standing committee of the finance ministry.
The proposed legislation, with certain amendments, was approved by the Union Cabinet on February 10.
The standing committee had proposed that the maximum punishment for melting or destruction of coins should be equated with that of counterfeiting and enhanced to 10 years of imprisonment but the Cabinet had approved the sentence of only up to seven years.
The Acts which have been amalgamated under this comprehensive legislation are the Indian Coinage Act 1906, the Small Coins (Offences) Act, 1971, the Metal Token Act, 1889, and the Bronze Coin (Legal Tender) Act, 1918.
The bill also broadens the definition of 'coin' to include one rupee note which is virtually out of circulation and consequently repeals the Currency Ordinance of 1940.
As coins made of silver, nickel, copper and bronze are no longer in circulation, the measure brings under its gamut the use of any other material besides metals or mixed metals under the legislation.
Currently coins in the denomination of 50 paise, Re1, Rs2, 5 and 10 are in circulation.
