Section 177 in The Small Coins (Offences) Act, 1971
177.
Statement of Objects and Reasons.-For some time past, Government's attention has been drawn to the reports about inconvenience to the public caused by shortage of small coins. An analysis of the possible causes of this shortage has revealed that the main cause of this shortage has been the diversion from circulation of small coins in certain alloys for purposes of melting to take advantage of their metallic value which had risen beyond the face value of the coins. Government have taken various steps to increase the production of small coins in the Mints and to change the alloy of the coins now being minted such that there is no risk of their being diverted for melting whether now or in the future, but further depletion of the small coins in circulation through diversion of coins minted in earlier years had to be stopped. Having regard to the urgency of the matter, Government promulgated the Small Coins (Offences) Ordinance, 1971, on 22nd October, 1971 making melting of small coins and hoarding such coins with an intention of melting an offence in law which they were not previously. The present Bill is intended to replace the Small Coins (Offences) Ordinance, 1971. As the present shortage is expected to be only a temporary phenomenon, it is proposed that the enactment might have a validity period of three years only.Amending Act 49 of 1974-Statement of Objects and Reasons.-The Small Coins (Offences) Act, 1971 makes melting or destruction of small coins and hoarding of small coins for the purpose of melting or destruction thereof an offence in law for a period of three years from 11th December, 1971. While, of late, the acts of melting small coins have come down, its total disappearance in future cannot be assured. Price of metallic alloys, even of aluminium-magnesium, may behave erratically depending on the international demand and supply position. Inducement to melt coins is derived not only from the difference between the metallic value and the face value, but also from the prospective margin of profit in alternative uses to which the metal or its alloy can be put to. It is, therefore, considered desirable that the Small Coins (Offences) Act, 1971 may be made a permanent measure instead of being a temporary one as at present.2. The present Bill seeks to achieve the above objectives.An Act to provide for the prevention of melting or destruction of small coins, hoarding of small coins for the purpose of melting or destruction thereof, and for matters connected therewith or incidental thereto .Whereas acute shortage of small coins has been felt in the country and it is necessary, in the interests of the general public, to take steps to relieve such shortage;Be it enacted by Parliament in the Twenty-second Year of the Republic of India as follows:
