Friday, October 31, 2008

Economic Terrorism - How fake currency and terror are related

While Indians are fighting on Issues like Religionism and Regionalism , Pakistan is trying its best to deplete Indian economy. Lakhs of Indian fake currency enters Indian Bank every Month and not a single time this issue is been raised in Parliament. Some of the Incident in recent pasts are :-

Special Narcotic Cell (SNC) of Punjab police on Oct 25 claimed to have seized fake currency of Rs 5 Lakh with the arrest of alleged accused Sukhchain Singh resident of Amritsar.Conforming the seizure and arrest of alleged accused, Official of SNC informed that fake currency was smuggled from Pakistan to India.The SNC officials informed that alleged smugglers have warm links across the border with Pakistani smugglers who used to send fake currency to India.

More than Rs.2 million worth fake Indian currency notes seized on Lucknow, July 30 in two incidents and half-a-dozen people arrested in this connection -- Uttar Pradesh appears turning into a major fake currency hub in the country.The main reason behind this as the border of nepal and Uttarpradesh cannot be tracked end to end at a time. People can easily move from Nepal to UP whenever they wish.The 1751-km-long border is largely unmarked, unguarded, porous, and smuggling is as easy as cycling across the border with illegal goods.

The Special Task Force - of the UP police September 3 arrested a person from Siddharthnagar district, bordering Nepal, and recovered fake currency notes of Rs.500,000 from him. Later, after interrogating Abid, as he identified himself, the cops also arrested a cashier of the State Bank of India posted at the Dumariyaganj branch in the district. In a similar catch in previous week, Lucknow police arrested four persons and recovered counterfeit Indian currency worth Rs.1.6 million from them.

Two Indians, an Iranian and a Pakistani were arrested after Dubai police busted a fake Indian currency racket in this west Asian metropolis. Police arrested the four-member gang on Aug 5 and recovered fake Indian currency with a notional value of Rs.2 million ($46,500). The cops working on the issue also have a strong belief that these notes are manufactured in Pakistan and are infiltrated into India by the Inter Services Intelligence.

Birganj, the biggest town in Nepal's Terai region, has become a transit point for almost all the fake currency entering India. The smuggling is so widespread that Birganj’s Superintendent of Police Yogeshwar Rom Khami can produce produces hundreds of fake notes on asking.Fake currency dealers and couriers in Nepal told to one of the news channels that Pakistan’s spy agency Inter-Services Intelligence (ISI) is pushing crores of fake currency every month into India from Nepal. They also said that by 2010 nearly Rs 10,000 crore of fake currency would be in circulation in India.

How fake currency and terror are related

Intelligence Bureau and investigating agencies have established that fake currency funds terror in India. IB officials say there is a whopping Rs 17,000 crore worth of fake currency in circulation in India. While it funds terror organizations, it also helps intensify economic terrorism in the country.

Sameer, one of the accused in the Hyderabad twin blasts, said in his confession and recent narco analysis conducted in Bengaluru that the notes are printed in Pakistan and routed into India through Bangladesh. He said that it is distributed to the rest of the country from Uttar Pradesh.Sameer said he was mainly responsible for bringing in people from the across the border to carry out terror attacks in India. Along with the men, large consignments of fake currency too were transported, he added.
What has foxed investigating agencies is that the serial numbers on the seized fake notes were similar those on genuine notes. Moreover the paper and printing quality of the notes have improved in the past few years making it very difficult to spot the fakes.

Majid Bilal, brother of alleged Hyderabad blasts mastermind Shahid Bilal, said during his narco analysis test that it is was compulsory for the men coming in from across the border to carry fake currency with them. He said that the notes were exchanged with agents within India (mostly in Rajasthan, UP and Andhra Pradesh) at a 2:1 ratio. He also said that Rs 5 crore had been spent on the Hyderabad twin blasts and added that all the money came from distribution of fake currency.

There are credible reports that intelligence agency of a neighbouring country continues to pump in fake Indian currency notes (FICN) in all parts of India," Minister of State for Finance P K Bansal told the Rajya Sabha in a written reply. As per the information provided by the National Crimes Record Bureau, number of notes seized in India in 2005 was 3,61,700, amounting to Rs 6,92,70,876. The number of notes seized in 2006 and 2007 stood at 3,58,007 and 3,34,566 amounting to Rs 8,39,49,269 and Rs 8,85,88,385 respectively.During the current year up to June 30, 1,84,101 notes worth Rs 6,04,38,340 had been seized.

This might look a very small problem , but it can lead to disastrous situation if fake currencies continues to flow with the same pace.To an extent this is also kind of terrorism against India. Economic Terrorism .

There should be advance technologies provided to bank so that they can take care of newly generated fake currencies , as the machines given to the bank still have the old algorithm, Now a days advance technologies with high quality paper is used so that it become too difficult to identify the fake currency. What a government should do ?? Is there anyone who can do something to counter this attack on Indian economy.