Section 39 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 39 is the main criminal provision against counterfeiting a geographical indication. Anyone who falsifies one, falsely applies one, keeps the tools for doing so, gives a false indication of origin or tampers with a required indication of origin faces imprisonment of six months to three years and a fine of fifty thousand to two lakh rupees, unless he proves he acted without intent to defraud. If you are on either side of such a complaint, our legal notice drafting team can prepare the notice or the reply.
Six acts are covered, listed in clauses (a) to (f). The punishment is imprisonment for a term not less than six months but which may extend to three years and fine not less than fifty thousand rupees but which may extend to two lakh rupees. The accused escapes only if he proves that he acted without intent to defraud. A court may, for adequate and special reasons to be mentioned in the judgment, go below the minimum. This remains an offence tried by a court.
Status after the amending Acts
Section 39 is not on the list of the Tribunals Reforms Act, 2021 and is not changed by item 31 of the Jan Vishwas (Amendment of Provisions) Act, 2023, which substitutes only the punishment in section 42(2). So the figures printed in section 39 are the current figures. This section is an offence for a court, not a penalty decided by an adjudicating officer under section 37A.
The six acts
"Any person who ..." does one of the following:
| Clause | Act |
|---|---|
| (a) | Falsifies any geographical indication |
| (b) | Falsely applies to goods any geographical indication |
| (c) | Makes, disposes of, or has in his possession, any die, block, machine, plate or other instrument for the purpose of falsifying, or of being used for falsifying, a geographical indication |
| (d) | Applies, to goods to which an indication of the country or place of making or production, or the name and address of the manufacturer or person for whom the goods are manufactured, is required to be applied under section 71, a false indication of such country, place, name or address |
| (e) | Tampers with, alters or effaces an indication of origin applied to goods to which it is required to be applied under section 71 |
| (f) | Causes any of the things above-mentioned to be done |
Clauses (a) and (b) use the definitions in section 38. Clause (c) reaches the person who supplies or holds the tools: the die, block, machine or plate. Clauses (d) and (e) work with the indication-of-origin requirement that the Central Government may impose under section 71, explained in a separate article on section 71. Clause (f) catches the person who gets someone else to do it.
The defence: no intent to defraud
The sentence is imposed on the offender "unless he proves that he acted, without intent to defraud". Two things follow from the words.
- The burden of proving absence of intent to defraud is on the accused.
- It is a defence to the punishment as a whole, so it applies to all six clauses.
Separately, section 38(4) puts the burden of proving assent on the accused. A person who made the indication with the authorised user's assent has not falsified it at all; a person who made it without assent may still escape by proving no intent to defraud.
Punishment
"... punishable with imprisonment for a term which shall not be less than six months but which may extend to three years and with fine which shall not be less than fifty thousand rupees but which may extend to two lakh rupees."
Note the word "and". Imprisonment and fine are both prescribed, each with a minimum.
| Minimum | Maximum | |
|---|---|---|
| Imprisonment | Six months | Three years |
| Fine | Fifty thousand rupees | Two lakh rupees |
The proviso: going below the minimum
"Provided that the court may, for adequate and special reasons to be mentioned in the judgment, impose a sentence of imprisonment for a term of less than six months or a fine of less than fifty thousand rupees."
The court cannot go below the minimum casually. It must record "adequate and special reasons" in the judgment. The proviso allows a lower term or a lower fine; it does not allow the court to drop either one altogether.
Who tries it and who can start the case
Section 50 deals with procedure. No court inferior to a Metropolitan Magistrate or Judicial Magistrate of the first class may try an offence under the Act (s.50(2)), and offences under sections 39, 40 and 41 are cognizable (s.50(3)). Police search and seizure powers are explained in the article on section 50. The employee's exemption under section 47 and the forfeiture of goods under section 46 also attach to section 39.
Example
Sharma Fabrics keeps a block engraved with an invented hill-weave indication. It has no assent from any authorised user and prints the mark on cloth sold to wholesalers. Clause (c) (possession of the instrument), clause (a) or (b) and possibly (f) are in play. If convicted without special reasons, the court must impose at least six months and at least fifty thousand rupees. If Sharma Fabrics proves it acted without intent to defraud, for example by showing it had been told in writing that the indication was open to use, the punishment does not follow.
What the section does not say
- It does not define intent to defraud; the text leaves it to the court.
- It does not say whether the court may impose a fine alone below the minimum without also reducing the term; the proviso speaks of a lesser term "or" a lesser fine.
- It does not provide any money penalty for this offence; that is a different regime for section 42(2).
Practical points
- Keep dies, blocks and plates under lock, and log who has used them.
- Print only indications you are authorised to use, and keep the permission on file.
- If you are the rights holder, preserve samples and invoices; they help prove the act and rebut a claim of innocence.
Need help with a complaint or a notice under section 39?
Section 39 carries minimum sentences, so both the complaint and the defence need to be built on the words of the section. Our legal notice drafting team can prepare a notice to a suspected counterfeiter, or help a client who has received one to reply before any complaint is filed.
Key takeaways
- Section 39 punishes falsifying, false application, keeping tools, false indication of origin and tampering with an indication of origin.
- Imprisonment is six months to three years and fine is fifty thousand to two lakh rupees, both mandatory unless the court records adequate and special reasons.
- The accused is saved if he proves he acted without intent to defraud.
- It remains an offence tried by a court; it was not changed by the 2021 or 2023 amending Acts.
Read next
- Section 38: falsifying and falsely applying geographical indications
- Section 40: penalty for selling goods with a false geographical indication
- Section 41: enhanced penalty on second or subsequent conviction
- Infringement of geographical indication: penalties
Disclaimer: Based on the Geographical Indications of Goods (Registration and Protection) Act, 1999 read with the Tribunals Reforms Act, 2021 and the Jan Vishwas (Amendment of Provisions) Act, 2023, as consulted on 1 October 2026. Forms, fees and procedure are set by the rules made under the Act. This article is general information, not legal advice; check the official text before acting.