Two businessman held in fake currency racket

AHMEDABAD: Two diamond transporters based in Mumbai were arrested in connection with a fake currency racket, officials said on Sunday.

Nazir Motiwala and Hanif Naviwala were arrested on Saturday and identified as Mumbai-based businessmen engaged in diamond transport. The two allegedly used their hawala links to send real Indian currency to Pakistan, police said.

"Through their hawala network, they sent Rs 2.3 lakhs cash to Pakistan after a network of smugglers had managed to slip in fake currency with face value of Rs 24 lakh by the sea route into India," a Gujarat police official investigating the case said.

"The two operated from Bhendi bazaar in Mumbai and also had business in Bharuch and Surat in Gujarat. They are in our custody till August 1 and more should be revealed after their interrogation," the official said.

The Kutch police had arrested 11 persons in this case, including two alleged Pakistani ISI agents, and the remaining Indian fishermen, earlier in July.

With the arrest of these two hawala operators, the number of persons apprehended has gone to 13.

Police had busted the fake currency racket earlier this month in which ISI set up a network of fishermen from India to smuggle the currency to India.

With these arrests, officials claimed to have aborted a major consignment of fake currency, arms, ammunition and narcotics.

A portion of the fake currency pumped into India by this network had made its way to Mumbai and some to Hyderabad, police said.

Police teams from both these states also are also investigating the case and probing several hawala trails, the official said.