India's Nuclear Capable Arihant Submarine Successfully Test-fires First Unarmed Missile | Turkish F 16 shoots down Russian Su 34 | Russian President Vladimir Putin says jetfighter was over Syria and calls it stab in back | 129 people killed in multiple terror attacks in Paris, figure may go up: French Ambassador | French Rafale jets hit ISIS targets in Raqqa, Syria | France declares National Emergency and vows to hit back | World leaders condemn barbaric attacks | World leaders also express solidarity with France | India, UK sign Civil Nuclear Agreement Nov 12 | The Agreement was signed during Prime Minister Narendra Modi's 3-day visit to UK beginning Nov 12 | UAE in final discussions to buy 60 Rafale jets from France | However, Maj Gen Ibrahim Nasser al Alawi, UAE Air Force chief, says no decision yet | India launches latest Communication Satellite GSAT-15 from Kourou, French Guiana Nov 11 | Dubai Airshow opened Nov 8 | Shaikh Mohammed bin Rashid al Maktoum, Ruler of Dubai, and Shaikh Mohammed bin Zayed, Crown Prince of Abu Dhabi, inaugurated the mega event | Government of India issues notification to implement One Rank One Pension (OROP) Nov 7 | Leaders of China and Taiwan meet for the first time | A Pawan Hans Helicopter crashes off Bombay High Nov 4 | Two Pilots on board missing | BrahMos hits target in maiden test firing from Navyís new destroyer INS Kochi | A Russian plane crashes with 224 passengers on board | Northrop Grumman Wins Huge US Long Range Bomber Deal | MoD Approves Induction of Women as Fighter Pilots | Selection is Immediate, and IAF's First Women Pilots will get Wings by June 2017 | India's Entry into MTCR is Imminent soon despite a recent failed attempt | US and France spearheading campaign for India's entry into MTCR, NSG and other denial regimes | Boeing Offers to Make F 18 Super Hornets in India, and also set up a Helicopter Assembly Line | IAF will Acquire another six C 130J Super Hercules aircraft within 2 Years, says Air Chief | IAF in final negotiations with Airbus Military for buying A330 Midair Refuelers, says Air Chief | Lockheed Martin - Sikorsky sourcing S 92 helicopter cabins from India for the US Presidential squadron | India hosting big Africa Summit to support the Continent | Emirates airline Marks 30th Anniversary Oct 25 | Air India to Start Direct Delhi - San Francisco Flight from Dec 2 | Dubai Air Show Opens Nov 8 - 12 |

Indian Fake Currency Notes (IFCN) and ISI

By J K Verma Published : November 2009
New Delhi. The Madhya Pradesh Police recently arrested two gangsters Ateeq Ahmed and Rajesh Gupta, both Nepalese nationals, along with fake currency notes of INR 500 denomination of Indian currency. In the course of interrogation, both alleged that Nepalís former crown prince Paras was in nexus with Pakistan-based Indian smuggler and terror operator Dawood Ibrahim as well as the Pakistani Inter Service Intelligence (ISI) operatives. Paras, in his greed for money, helps ISI operatives in clearing IFCN which reaches Kathmandu from Pakistan. There, the ISI country chief operating from the Pakistani Embassy supervises the operation of receiving and sending the IFCN to various cities in India. The currency is sold at half the value of denomination and gradually, as it passes hands through various distributors and ultimately the gullible public, profit margins are shared.

Pakistan itself has two advantages: It makes money by producing and selling counterfeit currency, and in the process, it harms the Indian economy as part of its mad terror and proxy war against India.

It may be recalled that a few years back, a First Secretary of the Pakistani Embassy in Kathmandu was sent back to country because of his clear-cut involvement in sending the counterfeit currency to India.

India and Nepal share a long porous border and no visa is required. The movement on their borders is not only unrestricted but very heavy too because of the traditionally good relations. ISI takes advantage of this, and has recruited both Indian and Nepalese criminals as couriers who smuggle IFCN to India. The problem is multiplied as admittedly there is rampant corruption on both the sides of the border.

According to Indian intelligence estimates, billions of dollars worth of counterfeit Indian currency, printed in the official Pakistani presses, is in circulation in India. One strong piece of evidence is from international reports which say that Pakistan buys far more currency paper and special inks than it needs annually to print its own currency.

According to intelligence reports, initially the fake Indian currency was printed in only one or two Pakistan government presses. However, as ISI has been able to successfully enlarge its network in Nepal, Bangladesh, Sri Lanka, Dubai (UAE) and even in India itself with the connivance of gangsters like Dawood Ibrahim, the fake Indian currency is now being printed at several government-controlled presses in Karachi, Multan, Quetta, Lahore and Peshawar.

There are unconfirmed allegations that ISI has also been able to print some fake Indian currency in Bangladesh under its direct supervision.

The Pakistan government imports the special paper and ink from UK, Sweden and Switzerland. As the material is much more than its own legitimate requirement, the excess bulk is diverted to ISI, which is regarded more as an international terror and sabotage outfit now than a normal security agency which should be concerned with safeguarding its own country.

ISIís penetration in India can be gauged from the fact that the its Pakistan-made fake Indian currency was found from the chests of a nationalized bank in Indiaís Uttar Pradesh state.

It may be noted that both the ISI and the Pakistan Pakistan International Airlines (PIA) are operated by the Pakistani Defence Ministry. PIA also has some hotels as part of its international chain.

ISI mostly uses PIA for transporting the IFCN to various countries. As ISI is part of Pakistanís persistent and main ruling party, the Pakistani Army, it occasionally uses the privileged diplomatic channels like the diplomatic personnel and bags also to spread its nefarious activities.

The ISI has raised influential persons in these countries and in turn these high-ranking persons have recruited middle level couriers. Each middle level courier has few low level carriers who take the IFCN to India. In India these low level carriers give IFCN to their contacts in almost all the big cities of India. These middle level couriers and low level carriers meet their contacts as per their date, place and time. This is the reason that when these low level couriers/carriers are caught the Indian security agencies fail to lay hands on big fish.

Modus Operandi of ISI

The modus operandi of ISI is simple. It prints notes of Rs 1000 and Rs 500 denominations. As ISI uses the Pakistan governmentís state apparatus, the quality of the counterfeit Indian currency is good and it is difficult for an average person to identify the Made-in-Pakistan-and- Counterfeit difference.

The main agents, who buy the counterfeits at 50 per cent of the face value from ISI-Dawood Ibrahim network, distribute the currency in small bundles through their layered networks. Many Indians returning home on Transfer of Residence (TR) from Dubai have been caught with this counterfeit currency hidden in televisions and electronics goods.

The same way, a large number of people coming from Nepal and Bangladesh are lured to bring IFCN to India. If a carrier has a large sum, then a trusted ISI escorts him clandestinely. The carrier is not given any address or contact number of the Indian contact. On the other hand, its India-based agent would have the mobile number and address of the carrier, and if the carrier is able to slip in successfully, he is contacted and the counterfeit collected from him for further distribution.

If the India-based agent has an iota of suspicion that the courier is likely to be caught, then the operation is just dropped so that no contacts can be established in the chain.

In Bangladesh, it is reported that Malda and Murshidabad have become the main transit points for circulating IFCN to various cities in India. There is a long porous border with heavy legal and illegal traffic between both the countries. The inhabitants on both sides of the border are poor and law enforcing agencies are dishonest; hence the illegal trafficking of IFCN faces virtually no difficulty.

Adverse Impact of IFCN on Indian Economy

The smuggling of a large amount of IFCN is simply economic terrorism. The funds generated so are additionally used to finance the terrorist activities in India. According to an unconfirmed report, ISI has an annual budget of Rs 1800 crore per year on organizing terrorist activities in India. It generates most of this requirement itself by printing and circulating fake currency, and smuggling of drugs to and through India for European and Amercian desitnations.

It may be recalled, and significantly, that the biggest drug haul in Dubai in the early 1980s was caught from the rice consignment sent by the Pakistan government-owned Rice Export Council of Pakistan (RECP). That clearly indicates that ISI has no restrictions on using whatever official and unofficial channel that it wants to use.

Measures Adopted by India

The Indian Home Minister recently discussed the issue of smuggling of IFCN through Nepal to India with the Nepalese Prime Minister. The Home Secretaries of both India and Nepal have also agreed to chalk out a plan to curb the smuggling of IFCN from Nepal to India.

A Central Bureau of Investigation (CBI) spokesperson told in a press conference sometime back that a special team has been constituted wi th of f i c e r s f rom CBI and Directorate of Revenue Intelligence (DRI) etc. to ascertain up to what level security templates have been compromised.

The Cabinet Secretary has also chaired a high level meeting of various security agencies to adopt a comprehensive policy to stop the smuggling of IFCN in India at the earliest. Besides taking action within the country, it has also been decided to get in touch with European countries from where Pakistan is importing special paper and ink much more than its legitimate requirement.

India is also considering major changes in its currency notes to make them more difficult to copy and also to spread an awareness campaign in the public to help identify the Madein- Pakistan counterfeit Indian notes.

A proposal to award exemplary punishment to currency smugglers is also being considered.

  © India Strategic  
Top Stories
Chief of Army Staff Visits 5/5 GR (FF) Marking Platinum Jubilee
Indian Navy First Training Squadron Visits Seychelles
Rashtriya Rifles Marks Silver Jubilee
Indian Navy Commissions INS Kochi, a Kolkata-class guided missile destroyer
NASA, Boeing Extend International Space Station Contract
Indian Army Northern Command Holds Flight Safety Conference
Spanish Minister of State for Defence Calls on RRM
Royal Australian Air Force Airbus A330 MRTT refuels F-35 fighter
Modi in US; India signs $3.1 b Apache, Chinook contracts with Boeing, USG
Indian Army Corps of Artillery marks 188th Gunners Day
India launches Multi Wavelength Space Observatory ASTROSAT
INS Trikand Visits Toulon, France
Boeing, US Air Force KC-46A Tanker Completes Successful First Flight
IAF Su-30 MKIs to Become More Lethal
India's Mars Mission (MOM) Marks a Year in Orbit
Boeing Hosts China President Xi Jinping, Announces Airplane Sales
Parrikar asks DRDO to focus on Core Defence Technology
12 Scientists Conferred DRDO Awards for 2014
India Clears Deals to Buy Boeingís Apache, Chinook Helicopters
IAF Chief Inaugurates EMI-EMC Testing, NFTR at BEL
 Home | Contact Us| In the Press| Links| Downloads
© 2008-14, India Strategic. All rights reserved.