Indian Penal Code, 1860
Section 239
repealedDelivery of coin possessed with knowledge that it is counterfeit
Whoever, having any counterfeit coin, which at the time when he became possessed of it, he knew to be counterfeit, fraudulently or with intent that fraud may be committed, delivers the same to any persons or attempts to induce any person to receive it, shall be punished with imprisonment of either description for a term which may extend to five years, and shall also be liable to fine.
Why this exists
This section targets the act of knowingly passing off fake coin as real, specifically when the person knew from the outset — that is, from the moment they acquired it — that it was counterfeit. Requiring fraudulent intent ensures the law punishes deliberate deception (using known fake coin to cheat someone) rather than innocent circulation of currency someone genuinely believed was real.