Circulation of counterfeit notes in Rs 1,000 and Rs 500 denominations is high in Umarkote locality. It is alleged an interstate racket is functioning behind the circulation of notes.
Some local business men and Bangladeshi intruders, who are illegally staying here, have been carrying out the transaction, source said.
The counterfeiters are targeting tribal people, who can carry small sums and spend it in town unaware that they are using fake notes. Apart from tribal people, counterfeiters are also employing some local people to spend fake notes in small shops, where they escape unnoticed. The local police have not been able to tackle the problem so far despite being flooded with complaints.