law: Coinage Act, 2011
  Chapter V Offences
  
  and Penalties
  12. Prohibition of
  
  making or melting or destruction of coins.-
  1.  
  
    No
  
  person shall
   
  
   i.  
  
    use
  
  any metal piece as coin whether stamped or unstamped, intended to be used as
  
  money except by the authority of the Government, or
  melt
  
  or destroy any coin, or
   
  
   iii.  
  
    use
  
  coin other than as a medium of exchange, or
   
  
   iv.  
  
    have
  
  in his possession, custody or control,
  a.   any melted coin,
  
  whether in the molten state or in a solid state, or
  b.   any coin in a
  
  destroyed or mutilated state, or
  c.   coins substantially
  
  in excess of his reasonable requirements for the purpose of selling such coins
  
  for value other than their face value or for melting or for destroying or for
  
  disposing these coins other than as a medium of exchange.
  Explanation:- For the
  
  purposes of determining the reasonable requirements of coins of a person, due
  
  regard shall be had to
    
  
   i.  
  
    his
  
  total daily requirements of coins;
  the
  
  nature of his business, occupation or profession;
   
  
   iii.  
  
    the
  
  mode of his acquisition of coins; and
   
  
   iv.  
  
    the
  
  manner in which, and the place at which, such coins are being possessed, held
  
  or controlled by him.
  2.  
  
    Whoever
  
  is found to be in possession of any metal or material which contains alloys in
  
  the same proportions in which they have been used in the manufacture of any
  
  coin shall be presumed, until the contrary is proved, to have contravened the
  
  provisions of sub-section (1).
  3.  
  
    Nothing
  
  in this section shall apply
   
  
   i.  
  
    to
  
  any person who is found in possession of any metal or scraps or scissel, etc.,
  
  of non-recyclable coinage metal, which he may so possess as a result of valid
  
  disposal by auctions by a Mint;
  to
  
  the Mint, Reserve Bank of India and its authorised agents, and suppliers of
  
  coins or coin blanks to the extent of orders placed by or under the authority
  
  of the Government until their supply or completion of orders placed by the
  
  Government;
    
  
   iii.  
  
    to
  
  any prospective supplier who intends to supply coin or coin blanks as samples
  
  against a valid tender documents purchased by him provided that quantity is in
  
  reasonable agreement with quantity of samples to be supplied.