New Delhi, November 11, 2026 (Yes Punjab News)
Security and intelligence agencies have alerted law enforcement authorities to a possible surge in counterfeit currency circulation ahead of assembly elections scheduled across seven states in 2027.
Goa, Uttarakhand, Punjab, Manipur, Uttar Pradesh, Himachal Pradesh and Gujarat are scheduled to hold Assembly elections between February and December next year. Intelligence agencies have warned of possible terrorist activities as well as attempts to flood poll-bound states with fake Indian currency notes.
According to officials, high-quality counterfeit currency has primarily entered India through borders with Nepal, Pakistan and Bangladesh, with sophisticated notes largely printed in Pakistan. However, tighter border security has reportedly prompted racketeers to change their methods by reducing the quantity smuggled across borders and increasing domestic production.
An Intelligence Bureau official said counterfeit notes could be brought into India in smaller consignments and mixed with fake currency printed within the country. The Pakistan-printed notes would reportedly be placed on top of such bundles to make detection more difficult.
Security agencies are also concerned about the expansion of illegal currency-printing units within India. In a recent operation, the Uttar Pradesh Special Task Force, along with Sonia police, busted an alleged counterfeit currency printing unit in Shravasti district and arrested three accused. They were allegedly planning to exchange fake currency worth Rs 3 lakh for every Rs 1 lakh in genuine notes.
Investigators reportedly found that the accused had learnt the process of manufacturing counterfeit notes through online videos and were using printing machines purchased online. Officials also said that specialised paper used for making fake currency was being sourced through networks dealing in material smuggled across the border.
Officials said counterfeit currency circulation often increases during festivals because of the high volume of cash transactions. Election periods can provide another opportunity for such rackets, as law enforcement agencies focus on tracking illicit money, black cash and freebies distributed by candidates.
Intelligence agencies have warned that states witnessing closely contested elections could be particularly vulnerable. They suspect that counterfeit notes may be mixed with genuine currency and circulated through cash-for-votes transactions. Voters accepting money may not examine the notes carefully, allowing racketeers to exploit the situation, officials said.
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