Source IANS: Indian intelligence agencies have flagged a sharp rise in the circulation of high-quality counterfeit currency, indicating a renewed push by international networks as enforcement actions intensify against narcotics trafficking. According to Intelligence Bureau (IB) assessments, multiple operations over the past two weeks have uncovered organised fake currency modules across several states.
Officials familiar with the investigations said the networks are linked to operatives of the Dawood Ibrahim syndicate, alleged to be based in Pakistan, and supported by elements of Pakistan’s Inter-Services Intelligence (ISI). They said that while drug-smuggling routes are under pressure due to ongoing crackdowns, the same networks are attempting to scale up counterfeit operations to generate funds.
Malda in West Bengal remains the primary entry point, officials said, adding that counterfeit notes are first routed through Bangladesh. They said the ISI is exploiting easier movement between Pakistan and Bangladesh and using sea links to transfer consignments before operatives push them into India through border districts such as Malda and Murshidabad.
Investigators also noted that smaller modules have emerged across the country. In one such case in Gujarat, a money-doubling scam was busted, and the victims were allegedly provided counterfeit currency. The gang operated across Gujarat and Maharashtra, according to the probe.
Alongside the Bangladesh–West Bengal corridor, officials said there is renewed activity along the UAE–Kerala route. They noted that increased passenger traffic on Gulf-bound flights and staffing constraints in airport customs units make detection challenging. Kasargod in Kerala has seen cases linked to suspected smuggling networks over the years, and officials said that individuals previously named in counterfeit investigations have been under watch for their alleged roles in facilitating routes via the UAE.
Intelligence officers also highlighted the growing difficulty in detecting counterfeit notes. They said the notes seized in recent operations closely resemble genuine currency and are believed to be printed using high-grade facilities in Pakistan. According to officials, this superior quality complicates screening at airports and border points.
A recent US State Department report referenced by Indian officials also noted the increasing inflow of high-quality counterfeit Indian currency produced in Pakistan and moved through international routes, warning that such networks can aid money laundering and pose risks to economic stability.
Officials said the latest trend reflects an attempt by groups to secure funds for activities in the region, including efforts to revive militant structures. They added that agencies are coordinating across states to track routes, identify modules, and tighten monitoring mechanisms.
