Saharanpur fake currency probe deepens

The National Investigation Agency (NIA) has expanded its investigation into the infiltration of counterfeit currency into India’s formal banking system, arresting two men reportedly close associates in a conspiracy that saw Rs 17.29 crore in fake notes come to light in a Punjab National Bank currency chest in Saharanpur, Uttar Pradesh.

Police took Ajay Kumar into custody in Ambala, Haryana, on October 16. Police arrested Harish Rounta in Manali, Himachal Pradesh, on October 22. According to the agency, both men were linked to the illegal printing and supply of large quantities of fake Indian currency notes that, through other accused persons, reached the PNB chest in the Civil Lines area.

The recovery came to light on August 29 after Saharanpur police received specific information. During the inquiry, three bank employees later surfaced as allegedly involved, and the bank suspended them. The police registered an FIR the same day under Section 178 of the Bharatiya Nyaya Sanhita, which deals with currency counterfeiting, against the three accused. The NIA re-registered the case on September 3 and assumed full charge of the investigation.

In September, the agency had already arrested five people: Amit Kumar, named in the original FIR; Adesh Choudhary, described as a key accused; and Mukesh Kumar, Rajender and Nitu. Officials now say Ajay Kumar and Harish Rounta worked closely with Choudhary and the others in the arrangement that placed the counterfeit notes inside the currency chest.

A currency chest is a high-security facility that banks operate on behalf of the Reserve Bank of India. It stores cash for distribution to branches and ATMs. The presence of a large volume of fake notes inside such a facility raises questions about internal controls, physical verification procedures and the possible involvement of people with legitimate access to the chest. Investigators have not yet publicly detailed how the notes entered the vault or whether the three suspended employees are alleged to have helped place them.

The NIA has stated that the investigation remains active. Its stated aims are to map the full chain of the conspiracy, identify the source of the printing operation and arrest remaining co-accused and suspects. The two latest arrests expand the case’s geographic footprint beyond Uttar Pradesh into Haryana and Himachal Pradesh, suggesting a wider network rather than a purely local operation.

Counterfeit currency cases on this scale are rare in RBI-linked facilities. If the Rs 17.29 crore in fake notes had entered branches or ATMs, it could have disrupted local cash circulation. The agency has not shared which denominations were involved or how well the notes were made, details that usually help determine if the operation used advanced or simple printing methods.

NIA has arrested seven accused persons so far, and at least 3 bank staff members are under investigation. The central issue is how the counterfeit notes got through the security that currency chests are meant to have. The NIA are expected to go through the bank records, the communications and any links to printers and distributors that haven't yet been apprehended. More arrests are likely to follow as the inquiry proceeds.