ISI prints and pumps fake notes worth Rs 2,500 crore into India

In the last four years, fake Indian currency notes (FICN) worth at least Rs 2,500 crore have been pumped into India by Pakistan's ISI to carry out terror activities. But what gives Indian agencies the worry is that only FICN worth Rs 455 crore has been seized. Of this, Rs 55 crore has been seized in foreign countries.

The fake currency, being made in Pakistan under the supervision of the ISI, and with the help of latest technology and world-class standards, including the paper, the ink and the watermark, looks so real that only an expert eye can detect it with the help of pink light.

Latest interrogations by National Investigation Agency (NIA) and other central agencies reveal that, of late, the ISI is trying to make the fake currency business more attractive by bringing down the exchange rate.

Union home ministry sources say, in its desperation to revive the off-take of FICN, the ISI has brought down the exchange rate from Rs 600-700 per Rs 1,000 to Rs 100-200. In some cases, it was found that it came for zero investment.

"This huge drop in exchange rate means that there is a clean profit of 80-90% for the conduits and those who are involved in terror activities, including the couriers, underworld and hawala racketeers. They deliver the FICN and take out clean money through cash, ATM and other channels. This is the ISI's desperate attempt to make terror funding more lucrative as, in the past couple of years, Indian agencies have successfully neutralised most of the terror modules and burst several hawala channels," a senior official said.

"There have been over 100 seizures outside India since 2011. Interrogation details confirm Pakistan's direct involvement in as many as 55-60% cases. But this also means that, by conservative means, a major portion of the remaining Rs 2,000 crore is in circulation and waiting to be used for terror activities," said the official.

Sources said that with the help of scientific and forensic testing, they have compiled enough evidence to establish that the FICN is being produced in Pakistan.

"The FICN contains some elements that are identical to the Pakistani currency. Ironically, the highly specialised and exclusive technology has been provided by reputed international companies that deal only with sovereign governments. We have brought these facts to the notice of Financial Action Task Force (FATF), a UN body, for appropriate action by treating counterfeiting of currency as terror financing," the official said.

Tomorrow: Who are the kingpins of this nefarious business and how do they operate

The highly specialised and exclusive technology has been provided by reputed international companies that deal only with sovereign governments. We have brought these facts to the notice of Financial Action Task Force, a UN body, for appropriate action An official

To revive the off-take of FICN, the ISI has brought down the exchange rate from Rs 600-700 per Rs 1,000 to Rs 100-200. In some cases, it was found that it came for zero investment