Whoever fraudulently or dishonestly uses as genuine any [document or electronic record] which he knows or has reason to believe to be a forged [document or electronic record], shall be punished in the same manner as if he had forged such [document or electronic record].
Understanding the Section
Section 471 of the Indian Penal Code punishes a person who deceitfully or dishonestly uses a forged document or electronic record knowing it to be forged. While Sections 463–465 IPC punish the act of forgery by making a false document or electronic record, Section 471 IPC punishes the use of forged documents, even if the user is not the forger, which is critically important. Using a forged document with knowledge or with reasonable belief as to the forgery is always wrong. It is only furtherance of fraud or deception and has a negative impact on the reliability of both public and private records. The mention of electronic documents explicitly permits the idea of forged digital documents, nodding to the numerous methods of digital forgery existing today. Perhaps one can conclude that section appears to make any person use of such a document, criminally liable for the purpose of an advantage to themselves or to mislead another person.
Essential Elements of the Offence
The following elements must be established to prove an offence under Section 471 IPC:
- Forged Document or Electronic Record: The document or electronic record must be forged, as defined in Sections 463 – 464 IPC.
- Knowledge or Reason to Believe: The accused must know or have reasonable grounds to believe that the document is forged. Ignorance or ground for suspicion is not sufficient.
- Fraudulently or dishonestly used: The person needs to have used the document in the manner of defrauding some person, which may also lead or could lead to, wrongful gain or wrongful loss.
- Used as a Genuine Document: The accused must have put the forged document or electronic record before others or relied on the forged document or electronic record as if it were genuine.
The elements above are more than just possession of forged documents or innocently using a forged document when the user is unaware.
Punishment under Section 471 IPC
Punishment for using forged documents under Section 471 IPC will be the same as forgery depending on the quality of the document and the nature of the offence.
- For general forgery under Section 466 IPC imprisonment may extend to a maximum of 7 years and a fine. The difficult treatment reflects the seriousness the law places on knowingly using a forged document, as it can cause real harm to individuals, businesses or government institutions.
Case Laws
- State of Maharashtra v. Devidas (2003): The court ruled that a person who made a use of forged document of property to get a bank loan could be found guilty under Section 471 IPC, even though they were not the original forger.
- Shiv Kumar Sharma v. State of Uttar Pradesh (1998): The decision stated that mere possession of forged documents is not enough for a conviction, and that prosecution must establish use as genuine with fraudulent intent by the accused.
- R. v. Lall (1967): The inclusion of “electronic record” in 471 IPC ensures that it will apply to electronic transactions – a nod to the modern reality.