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Offences Relating to Currency and Government Stamps
(1) Making, uttering, dealing in, selling, using for postal purposes, or possessing without lawful excuse, a "fictitious stamp" (falsely purporting to be an official postage stamp or a facsimile/imitation of one), or making/possessing materials for making one, is punished with a fine of up to ₹200. (2) Such items may be seized and forfeited.
This targets fake postage-stamp-like items - imitations that falsely purport to be official Government postage stamps.
Producing and selling fake postage stamps that imitate official Government stamps closely enough to deceive falls under this specific, lower-penalty provision.