Emerging Threat of Counterfeit Currency in India: A Growing Concern for Security Agencies
New Challenges in Counterfeit Currency Operations
Photo: IANS
New Delhi, Oct 30: Indian security agencies are facing a new hurdle in their ongoing battle against counterfeit currency notes.
While international counterfeit networks remain active, the rise of smaller, local counterfeit operations has become a significant issue for these agencies.
Agencies such as the National Investigation Agency (NIA) have been monitoring the counterfeit currency mafia for years. Traditionally, these operations have been linked to Pakistan, particularly involving the Dawood Ibrahim syndicate.
Interestingly, counterfeit notes are not directly smuggled from Pakistan; instead, they are funneled through Bangladesh before entering India. Over time, these networks have established a strong foothold in the border regions of West Bengal.
Recent investigations have pinpointed Malda as a central hub for counterfeit currency activities.
The new challenge for law enforcement is the proliferation of smaller networks and individual operators within India, which are more difficult to trace as they are not tied to larger syndicates.
According to an official, materials for counterfeiting are readily available online.
“Individual operators source materials online to print counterfeit notes. While both individual and smaller networks use similar methods, their scale and operational tactics differ,” the official explained.
In recent months, authorities have successfully apprehended individual operators and dismantled smaller networks. Three such operations were recently disrupted in Kerala, Madhya Pradesh, and Mumbai. The individuals involved had set up domestic printing units and acquired digital printers and paper-cutting tools.
Sibion, from Kallelivayal in Vadi, Kerala, was caught planning to print fake currency worth Rs 2.5 crore.
In Bhopal, police arrested Vivek Yadav, recovering 23 counterfeit Rs 500 notes.
In Mumbai, Omkar Bhoir was apprehended with 240 counterfeit Rs 500 notes.
Earlier this month, Maharashtra Police uncovered a counterfeit currency operation in Nagpur, seizing fake notes valued at Rs 85 lakh from a rented space. The suspect, Pushpak Krishna Bhandarkar alias Bendane, was allegedly printing counterfeit notes in the rented house, where police found Rs 37 lakh in fake currency.
Alongside the rise of individual operators, there is a notable increase in smaller networks that function independently of major syndicates. These groups typically consist of 3-4 members, allowing them to operate discreetly without leaving significant traces.
Another official noted that these individuals purchase high-resolution digital printers, scanners, and laminators from local stores or online platforms, minimizing the risk of detection.
However, these networks face challenges regarding the paper and embedded security features, which cannot be produced using standard commercial equipment.
The NIA has discovered that smaller networks often collaborate with associates of larger syndicates to obtain specialized paper that mimics the texture of real currency and includes forged RBI and Bharat watermarks.
Individuals lacking access to cross-border smuggling routes often employ a technique known as the double-sided or sandwich bundle method. They use standard bond paper cut to the size of currency notes, layering hundreds of these slips between two genuine Rs 500 notes to create bundles that can be mistaken for real currency.
They then apply counterfeit bank labels to deceive victims during quick cash transactions. A recent raid in Burrabazar by Kolkata police led to the arrest of Vijaypal Tanwar, who was found with bundles designed to resemble high-value counterfeit currency.
An official from the Intelligence Bureau remarked that such networks have proliferated in recent years.
“The combination of individual operators and smaller networks complicates the work of law enforcement. Unlike international players backed by the Inter Services Intelligence, these local networks are primarily motivated by quick profits rather than destabilizing the economy,” the official stated.
The counterfeit notes produced by these smaller networks are primarily circulated locally, often used in crowded markets, with transactions typically limited to Rs 1,000 or less.
In contrast, international syndicates aim to infiltrate banks directly with counterfeit notes.
India faces a multifaceted counterfeit currency issue, requiring agencies to combat both international syndicates and local operators. To effectively address this problem, enhanced coordination between central and state authorities is essential. State police will play a vital role in tackling local networks and individual operators, while central agencies will focus on larger international players.