The National Investigation Agency (NIA) has intensified its probe into a Nepal-linked fake Indian currency racket, conducting searches across three states—Bihar, Jammu & Kashmir, and Telangana. The operation is part of the investigation into a case registered in 2024 concerning the seizure of high-quality Fake Indian Currency Notes (FICNs) in Bihar. The fake currency network is believed to be run by individuals based in Nepal, utilizing cryptocurrency for financial transactions.

The NIA teams raided seven locations on Wednesday, covering five sites in Bihar, including Patna, Bhagalpur, Bhojpur, and Motihari, along with one location each in Anantnag (Jammu & Kashmir) and Hyderabad (Telangana). These searches aimed at uncovering further links between the suspects and the circulation of counterfeit notes within India.

Seizure of Fake Currency and Digital Evidence

During the raids, authorities recovered cash worth ₹1,49,400, along with crucial digital devices such as mobile phones, pen drives, SIM cards, and other electronic gadgets. Investigators also found incriminating documents that could provide leads regarding the origin and circulation of fake currency notes. The case is being closely monitored as officials suspect that Nepal-based operatives are using cryptocurrency to fund the fake currency trade.

The racket came to light when three individuals were arrested on September 5, 2024, following the seizure of Fake Indian Currency Notes worth ₹1.95 lakh in Bihar. The arrested individuals, Md Nazar Saddam (Bhagalpur), Md Waris (Bhojpur), and Zakir Hussain (Patna), were found to be in possession of counterfeit notes of superior quality, nearly indistinguishable from real currency.

NIA’s Takeover and Further Investigations

The case was initially investigated by the Bihar Police, but with the increasing complexity and interstate involvement, the NIA took over the probe in December 2024. Further investigations led to the arrest of another accused, Muzaffar Ahmad Wani alias Sarfaraz, from Anantnag, Jammu & Kashmir. His involvement in the supply chain of counterfeit currency has been under scrutiny, and officials believe he had direct links with the Nepal-based masterminds.

Investigators are now focusing on uncovering the full extent of the fake currency supply chain, the role of cryptocurrency in these transactions, and the cross-border involvement of Nepal-based operatives. The use of cryptocurrency is making it difficult for authorities to track the financial transactions linked to the illegal trade, but forensic experts are working on decoding digital trails left behind in the confiscated electronic devices.

Concerns Over Fake Currency Circulation

The issue of fake Indian currency circulation has been a persistent problem, with such notes being used to destabilize the economy and fund illegal activities. The latest case highlights the involvement of organized networks using advanced methods to introduce counterfeit money into the Indian financial system. Fake currency networks have been known to target border states due to their easy connectivity with neighboring countries.

The NIA is expanding its search operations to track other suspects involved in the case. Officials are also collaborating with intelligence agencies and cyber experts to monitor cryptocurrency transactions linked to the racket. The agency has urged citizens to remain vigilant and report any suspicious currency transactions.

As the investigation progresses, more arrests are expected in connection with the fake currency case. The authorities are determined to dismantle the Nepal-based network behind the circulation of high-quality counterfeit notes in India.

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