Fake currency threat looms over 2027 polls as racketeers target cash-for-votes

NEW DELHI: Security and intelligence agencies have placed law enforcement on high alert to counter a projected surge in counterfeit currency circulation ahead of assembly elections scheduled across seven states between February and December 2027.

Elections are scheduled to be held in Goa, Uttarakhand, Punjab, Manipur, Uttar Pradesh, Himachal Pradesh and Gujarat between February and December 2027.

Intelligence agencies have already sounded an alert and asked security forces to remain on very high alert ahead of the elections. Apart from the threat of terrorist activities in poll-bound states, the agencies have warned of a possible sharp increase in the circulation of fake Indian currency notes.

High-quality counterfeit currency enters India primarily through its borders with Nepal, Pakistan and Bangladesh. The fake notes are largely printed in Pakistan and are so sophisticated that they can sometimes be almost impossible to distinguish from genuine currency. Once they enter the financial system, detecting and removing them becomes extremely difficult, allowing them to remain in circulation. An official said that, with border security being tightened, those indulging in this racket have changed their modus operandi.

"While producing fake currency in large numbers at home, these elements would look to reduce the quantity that comes in through the border," the official said. The fake currency that is produced within India is easier to spot compared with the one that comes in from Pakistan. Ideally, these smugglers would have preferred having a major chunk of Pakistan-printed fake currency coming into India through the borders. However, given the current level of security, bringing in fake Indian notes in very large quantities would be extremely risky.  An Intelligence Bureau official said the plan was to smuggle counterfeit currency into India in smaller consignments through the borders and then mix it with fake notes printed within the country. (IANS)