Demonetisation to affect funding of terror networks

With the total value of fake Indian currency, seized by authorities since 2010, valued at a whooping 198.25 crore rupees, investigating agencies and anti-terror bodies countering the notorious Fake Indian Currency Notes (FICN) network seem to be pleased by the demonetisation measures announced by Prime Minister Narendra Modi on Tuesday.

Speaking to DNA, senior officials of the National Investigation Agency (NIA) and officers of the state police forces, said that taking out 500 and 1000 rupee notes out of circulation will have a lasting impact on the syndicates producing FICN's, thus affecting the funding of terror networks in Jammu and Kashmir, North-eastern states and Naxalite hit states. According to official figures, more than 198 core rupees worth fake currency has been seized since 2010. In 2010, 24 crore FICN were seized followed by 27.09 crore in 2011, 45.24 crore in 2012, 42.90 crore in 2013, 36.11 crore in 2014 and 22.90 crore in 2015 (till September). A special FICN Co-ordination (FCORD) Group had been formed by the Ministry of Home Affairs to share intelligence among the different state and national security agencies to counter FICN networks.

Officials told DNA that not only will the notorious FICN network bear the brunt of new economic measures various mechanisms employed by insurgent groups in various parts of India are bound to be effected. Among the mechanisms, according to the official, employed by insurgent and terror groups include Hawala transactions, extortion, ransom kidnapping and more importantly direct use of fake currency for illegal activities. "For syndicates benefiting directly in FICN, profits and rate of returns will decrease drastically. Most of the fake currency is being poured in to India by syndicates originating either in Bangladesh or in Pakistan and it will be very difficult to transport huge volumes of cash as the 500 and 1000 rupee note is taken out of circulation. Also the cost of producing huge volume of fake currency with the maximum denomination of 100 rupees will bleed these international syndicates," said a senior NIA official.

The official added, "Terror groups in Jammu and Kashmir use hawala transactions. Insurgent groups in North-east mostly rely on kidnapping and extortion and same goes for the Naxalites. The cash which would be lying with armed groups has been rendered useless. Furthermore, armed groups will find it very difficult to conduct business or buy arms and explosives using 100 rupee notes due to the logistical inconvenience."

Another senior NIA official while the detailing the history of counterfeiting currency said the menace of forging currency is a well planned effort. "Making fake currency has a long history which dates back to the World Wars. In India soon after partition, metal coins were being forged using crude equipment's but that was for monetary gains of the individuals or syndicates involved. Soon the method was adopted as state policy to destabilise a nation,"said the official.

The official said that the printing of currency in India is undertaken by Security Printing & Minting Corporation of India Limited (SPMCIL) and Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) which are both the subsidiaries of Reserve Bank of India. "Currency notes are prepared using a material called rag which is a cotton product. NIA compared fake currencies recovered in at least 35 criminal cases and quality and nature of the notes suggested they had the same source of origin. Be it notes recovered on Punjab border or J&K or Mumbai. The notes used by some transnational network even bore the same mistakes indicating they were being produced using similar machines,"said the official.

Officials said the PH value found on FICN of Rs 500 and Rs 1,000 denominations was exactly the same as the one found on Pakistani currency.