New Delhi, Oct 30 — A new challenge has emerged for Indian security agencies, which have been grappling with the menace of fake Indian currency notes.
While international networks continue to operate, the growing presence of smaller, indigenous, and individual counterfeit currency networks within the country has emerged as a fresh concern for the agencies.
Investigating agencies, including the National Investigation Agency (NIA), have long been tracking the fake currency mafia. The racket has traditionally been linked to Pakistan, with the Dawood Ibrahim syndicate believed to be playing a major role in its operations.
The counterfeit notes are not smuggled into India directly from Pakistan. Instead, they are routed through Bangladesh before being brought into the country. Over the years, these networks have established a strong presence in the border districts of West Bengal.
Recent investigations have identified Malda as the principal hub from where the counterfeit currency trade is being operated.
The fresh challenge the agencies face is the mushrooming of smaller networks in India and also solo operations being run by individuals. These networks are relatively harder to track as they are not associated with any major syndicate.
An official said there is material that is easily procurable online.
“The solo operatives procure materials online and print the notes. While both solo operatives and smaller networks deploy similar tactics, the only thing that varies is the scale of operation and the manner in which they function,” the official said.
In the last few months, the agencies have managed to nab solo operatives while also shutting down the smaller networks. Three solo networks were recently busted in Kerala, Madhya Pradesh and Mumbai. These individuals had procured a domestic printing unit and also accumulated digital printers and paper-cutting tools.
Sibion, a native of Kallelivayal in Vadi, Kerala, had planned on printing fake currency to the tune of Rs 2.5 crore before he was nabbed.
In Bhopal, Madhya Pradesh, the police arrested one Vivek Yadav and recovered 23 counterfeit notes of the Rs 500 denomination.
In Mumbai, one Omkar Bhoir was arrested after he was nabbed with 240 notes of the Rs 500 denomination.
Earlier this month, Maharashtra Police busted a counterfeit currency operation in Nagpur, seizing fake notes worth Rs 85 lakh from a rented room. The accused, Pushpak Krishna Bhandarkar alias Bendane, was allegedly printing counterfeit notes at a rented house. During the raid, the police recovered fake currency worth Rs 37 lakh.
In addition to the mushrooming of the solo actors, there is also a steady rise in smaller networks in the country. These are not associated with major syndicates and operate independently. These networks operate in groups of 3-4 persons, and this ensures that the operations remain covert with no major trail leading up to them.
Another official said these persons buy high-resolution digital printers, scanners, and laminators from local shops or e-commerce platforms. Since these are standard items, the chance of a red flag being triggered is minimal.
The challenge for these networks is the paper and the embedded security features. These cannot be manufactured using regular commercial tools.
The NIA learnt that smaller networks get in touch with cronies of major syndicates to procure the paper. This paper mimics the texture of the real currency along with pre-embedded security features bearing forged RBI and Bharat watermarks.
Individuals who do not have access to cross-border smuggling networks often resort to a method known as the double-sided or sandwich bundle technique. They procure standard bond paper and cut it to the exact dimensions of currency notes. Hundreds of these blank paper slips are then sandwiched between two genuine Rs 500 notes to create bundles that can be passed off as counterfeit currency.
Following this, they apply forged bank labels to trick victims during rapid and low-light cash transactions. The Burrabazar raids by the Kolkata police led to the arrest of one accused, Vijaypal Tanwar.
A backpack carried by the accused contained four bundles made to resemble packets of high-value counterfeit currency. Each bundle had genuine Rs 500 notes placed at the top and bottom, with 998 pieces of white paper, cut to the size of currency notes, sandwiched between them, the investigation revealed.
An Intelligence Bureau official said that in the last few years such networks have been mushrooming.
“The combination of solo players and smaller networks has made the job of the agencies harder. The intention of such networks and solo players is not aimed at destabilising the economy. They want to make fast bucks, unlike the Inter Services Intelligence-backed international players who look to hit the Indian economy,” the official said.
The fake notes printed by the smaller networks are circulated locally. Such notes are used in crowded markets, and each transaction is restricted to Rs 1,000 or below.
The international syndicates, however, play big and look to push the notes directly into the banks.
When it comes to fake currency, India is facing a problem on multiple fronts. The agencies do not just have to fight international syndicates, but also deal with the solo players and smaller networks.
To beat the problem, the need of the hour would be proper Centre-State coordination. The state police would have a crucial role to play when it comes to local networks and solo players, while the central agencies would continue to tackle the bigger players who operate from abroad, an official said.