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Offences Relating to Currency and Government Stamps
Importing, exporting, selling, delivering, buying, receiving, or otherwise trafficking in or using as genuine, counterfeit coin/stamp/currency/bank-notes, knowing or having reason to believe them counterfeit, is punished with life imprisonment or up to 10 years' imprisonment plus fine.
This extends the same severe liability from actually counterfeiting (Section 178) to knowingly using, trading, or passing off counterfeit currency as genuine.
Knowingly passing off fake currency notes as genuine in a transaction - even without having created the counterfeits yourself - carries the same severe penalty as counterfeiting itself.